In a seismic shift for skilled immigration to the United States, the Department of Homeland Security (DHS) has announced it will completely replace the random lottery system for allocating H-1B work visas with a new model that prioritises applicants based on their offered salary. This overhaul, aligning with a broader crackdown on immigration, comes alongside a controversial proposal from former President Donald Trump to impose a staggering $100,000 entry fee on new H-1B applications.
From Chance to Choice: The End of the H-1B Lottery
For years, the H-1B visa programme, which allows US companies to hire foreign workers in specialised occupations, has operated a random selection lottery. This was necessary as applications consistently far exceeded the annual cap of 85,000 visas (65,000 under the regular cap plus 20,000 for holders of advanced US degrees).
That system will be history from February 27, 2026, ahead of the FY 2027 registration season. Under the new rule announced on Tuesday, electronic registrations will be weighted according to the wage level set by the US Department of Labor. Simply put, applicants who are offered higher salaries by their prospective US employers will have a significantly better chance of being selected.
The US Citizenship and Immigration Services (USCIS) stated that the old lottery was "exploited and abused" by some employers flooding the system with lower-wage applications to undercut American workers. "The new weighted selection will better serve Congress' intent for the H-1B program and strengthen America's competitiveness by incentivising American employers to petition for higher-paid, higher-skilled foreign workers," said USCIS spokesman Matthew Tragesser.
Double Blow: Sky-High Fees and Stricter Vetting
This procedural change is part of a multi-pronged effort to reform the H-1B programme. It dovetails with Trump's recent proclamation, which, if implemented, would raise the fee for a new H-1B application from the current range of $2,000 to $5,000 to an unprecedented $100,000. The administration argues these measures are necessary to protect American wages and job opportunities.
Furthermore, enhanced scrutiny is already underway. Since December 15, the US State Department has begun more rigorous screening of H-1B and dependent H-4 visa applicants, including checks of their social media profiles. This has led to numerous interview postponements across US consulates in India, stranding many applicants who travelled home for visa stamping.
Impact on Indian IT and Professionals: A Stark Divide
The implications for India, whose nationals received 80,449 (57%) of the 1.41 lakh H-1B approvals in FY 2024, are profound. An analysis by the National Foundation for American Policy (NFAP) indicates the new wage-based system will create a stark divide.
It forecasts that the probability of selection will skyrocket by 107% for Level IV wage earners (typically senior, highly experienced roles) but plummet by 48% for Level I workers (entry-level positions). This poses a steep barrier for recent international graduates from US universities and early-career professionals, a large proportion of whom are Indian.
The crackdown is also expected to hit Indian IT majors hard. A Bloomberg News analysis specifically names firms like Tata Consultancy Services (TCS), Infosys, and Cognizant, which act as intermediaries for US companies seeking H-1B talent. While Amazon was the top recipient this year, these IT services giants have historically been among the largest users of the visa.
While supporters of the H-1B programme argue it fills critical skill gaps in healthcare, education, and tech, driving innovation, critics have long contended it is used for cheaper, entry-level labour. The new rules aim to address this criticism head-on. The combined effect of wage-based selection, proposed exorbitant fees, and tighter vetting is likely to reshape the US immigration landscape, potentially pushing more work offshore and making the American dream far more elusive for a generation of young Indian professionals.
