The U.S. Department of Homeland Security is replacing the lottery system for allocating H-1B visas with a new approach that prioritizes skilled, high-wage foreign workers. The new system will take effect on February 27, 2026.
The U.S. Department of Homeland Security is replacing the lottery system for allocating H-1B visas with a new approach that prioritizes skilled, high-wage foreign workers. The new system will take effect on February 27, 2026.
The changes are part of a series of moves by the Trump administration to reform the visa program, which critics say has become a conduit for foreign workers willing to work for less money, while supporters say it is a driver of innovation.
According to Citizenship and Immigration Services spokesman Matthew Tragesser, the current H-1B lottery system created an environment for abuse: employers used it to import cheap labor from abroad instead of hiring Americans and paying them appropriate market wages.
Earlier this year, President Donald Trump signed an executive order to impose a $100,000 annual H-1B visa fee for highly skilled workers, a measure that is currently being challenged in court. The president also introduced a $1 million “gold card” visa that would provide a path to U.S. citizenship for wealthy individuals.
The press release announcing the new rule states that it is “consistent with other key changes implemented by the administration, such as the Presidential Proclamation requiring employers to pay an additional $100,000 for each visa as a condition of eligibility.”
The new selection model will be based on a "weighted approach" to give preference to the most experienced specialists with high salaries. The relevant changes will come into effect on February 27, 2026 and will apply to the upcoming H-1B visa quota registration campaign, ABC writes .
Historically, H-1B visas have been issued through a lottery system. This year, Amazon was the top recipient, with more than 10,000 visas approved, followed by Tata Consultancy Services, Microsoft, Apple and Google. California has the largest concentration of H-1B workers.
Supporters of the H-1B program say it is an important pathway to employment for healthcare professionals and educators. They say it stimulates innovation and economic growth in the U.S. and allows employers to fill jobs in specialized fields.
Opponents of the current system argue that H-1B visas are mostly issued to fill entry-level positions rather than to attract highly skilled professionals. While the program’s regulations are designed to prevent wage dumping and protect U.S. jobs, in practice employers manipulate skill levels by lowering job requirements to pay less to experienced foreign workers.
The number of new visas issued annually is capped at 65,000, plus an additional 20,000 for people with a master's degree or higher.
