In a sweeping series of moves that will reshape the landscape for skilled foreign workers, the administration of President Donald Trump has enacted the most significant reforms to the United States' H-1B visa programme in over a decade. The changes, announced and implemented throughout 2025, dismantle the foundational random lottery system, impose a substantial new annual fee, and broaden security vetting, collectively redefining how America selects, prices, and scrutinises international talent.
End of an Era: H-1B Lottery Replaced by Wage-Based Selection
The most fundamental shift came in December 2025, when the Department of Homeland Security (DHS) confirmed the formal abandonment of the long-standing random H-1B lottery. This system, a hallmark of the programme for decades, will be replaced by a weighted selection model that prioritises applicants with higher salary offers and specialised skills.
The final rule, issued by US Citizenship and Immigration Services (USCIS), is set to take effect on 27 February 2026 and will govern the upcoming H-1B cap registration season for the fiscal year 2027. Under this new framework, an applicant's probability of selection will be directly tied to the offered wage level and specific job characteristics, marking a decisive policy pivot.
Officials have justified this overhaul as a necessary corrective. USCIS spokesman Matthew Tragesser stated that the previous random process was exploited by employers seeking to hire foreign workers at wages lower than those paid to American workers. The administration argues that linking selection to compensation better aligns the visa programme with genuine labour-market needs and protects domestic wage levels.
The $100,000 Annual Fee and Expanded Social Media Scrutiny
In a separate but equally impactful move, President Trump declared earlier in 2025 that employers sponsoring certain H-1B workers must pay an additional $100,000 annual fee per visa. This measure, introduced via a presidential proclamation and reinforced through USCIS guidance, is framed not as a routine filing charge but as a condition of eligibility. The fee has already faced legal challenges from business groups, though an initial attempt to block it was rejected by a federal judge in late December 2025.
Concurrently, the administration has significantly expanded background checks. In December 2025, the US State Department instructed consular officers to widen social-media and online-presence screenings for both H-1B applicants and their H-4 dependents. While such vetting existed in some form earlier, immigration lawyers note the latest guidance makes these checks far more routine, potentially lengthening visa interview processes and overall processing times.
Implementation Details and Programme Impact
USCIS has updated its forms, including the I-129 petition, and the electronic registration process to align with the new selection rule. Employers are now advised to meticulously review offered wages, job classifications, and their overall documentation strategy ahead of the FY2027 season.
It is important to note that the statutory numerical caps for the H-1B visa remain unchanged at 65,000 for the regular cap and an additional 20,000 for holders of advanced degrees from U.S. institutions. However, the method of distributing these visas has been fundamentally transformed.
Historically dominated by technology and IT services firms, the H-1B programme's largest recipients in recent years have included giants like Amazon, Tata Consultancy Services (TCS), Microsoft, Apple, and Google. Geographically, California continues to be the primary hub for H-1B employment, home to a dense concentration of tech firms and research institutions that heavily utilise this visa pathway.
These comprehensive reforms signal a new era for the H-1B visa, moving it from a system of chance to one explicitly designed to favour higher-wage, higher-skilled foreign professionals, while imposing significant new costs and scrutiny on the process.
