New Delhi | December 25, 2025 |The United States has announced a sweeping overhaul of its H-1B visa selection process, replacing the long-standing random lottery system with a wage-weighted selection model. The move, announced by the Department of Homeland Security (DHS), marks one of the most significant changes to the H-1B programme in over a decade and is expected to have a major impact on Indian professionals, who form the largest group of H-1B visa holders.
The change follows US President Donald Trump’s proposal to impose a $100,000 fee on new H-1B visa applications, part of a broader crackdown on immigration aimed at prioritising higher-paid, highly skilled workers and discouraging what the administration calls “abuse” of the system.
What Has Changed in the H-1B System?
Until now, H-1B visas were allocated through a random lottery, conducted after employers submitted electronic registrations. With demand consistently exceeding supply — nearly five times the annual cap — the lottery was used to select applicants for the limited number of visas available.
Under the new rules:
- The random lottery system has been scrapped
- Selection will now be weighted based on wage levels
- Applicants offered higher salaries will have a better chance of selection
- The change will take effect from February 27, 2026
- It will apply to the FY 2027 H-1B cap cycle
The annual H-1B quota remains unchanged at:
- 65,000 regular visas
- 20,000 additional visas for applicants with US master’s degrees or higher
However, the method of selection will now prioritise salary levels rather than chance.
Why the US Government Changed the System
According to the US Citizenship and Immigration Services (USCIS), the lottery system had become vulnerable to misuse.
In an official statement, USCIS said the random selection process allowed companies to submit large numbers of low-wage applications, often crowding out higher-skilled and higher-paid candidates.
“The existing lottery system was being exploited by employers seeking to hire foreign workers at lower wages. The new weighted selection will better align the H-1B program with Congressional intent,” a USCIS spokesperson said.
The administration has argued that the change will:
- Protect wages of American workers
- Discourage outsourcing-driven hiring
- Promote hiring of highly skilled professionals
- Reduce misuse of the visa programme
The policy is also aligned with Trump’s broader “America First” employment agenda.
What Is the $100,000 H-1B Fee?
One of the most controversial aspects of the reform is the proposed $100,000 application fee for new H-1B petitions.
Currently, employers pay between $2,000 and $5,000 per application, depending on company size and compliance fees.
If implemented:
- The new fee would significantly raise hiring costs
- Smaller companies and startups may be priced out
- Large technology firms may become more selective
The proposal is still under regulatory review, but the administration has indicated it is serious about implementing it as part of immigration reform.
Who Will Benefit Under the New System?
The wage-based selection model strongly favours:
- Senior-level professionals
- Highly specialised technical workers
- Employees earning Level IV wages under US Department of Labor norms
According to an analysis by the National Foundation for American Policy (NFAP):
- Selection chances for Level IV wage earners may rise by over 100%
- Chances for entry-level (Level I) applicants may fall by nearly 50%
This means experienced professionals with higher salaries are far more likely to secure visas than fresh graduates or early-career workers.
Impact on Indian Professionals
Indian nationals account for nearly 57% of all H-1B approvals, making them the most affected group.
In FY 2024:
- 80,449 of the 1.41 lakh approved H-1B visas went to Indians
- Major employers included Amazon, TCS, Infosys, Google and Microsoft
Experts warn that the new rules could:
- Reduce opportunities for fresh Indian graduates
- Affect IT staffing companies that rely on volume hiring
- Increase offshoring as companies avoid high visa costs
Indian IT majors such as TCS, Infosys and Cognizant may face higher operational costs, particularly for onsite deployments in the US.
Stricter Screening Already in Place
Alongside the new selection model, the US has tightened scrutiny of visa applicants.
Since mid-December:
- H-1B and H-4 applicants are facing enhanced background checks
- Social media activity is being reviewed
- Visa interviews in several Indian cities have been delayed
- Many applicants have reported extended processing timelines
The US State Department has said the enhanced vetting is aimed at improving national security and reducing fraud.
What This Means Going Forward
While the US government says the reforms will improve fairness and protect domestic workers, critics argue the changes could:
- Reduce access for young global talent
- Hurt innovation-driven industries
- Push more technology work offshore
- Disadvantage international students graduating from US universities
Supporters, however, say the system will now reward merit and experience rather than luck.
Bottom Line
The end of the H-1B lottery marks a fundamental shift in US immigration policy. With higher fees, wage-based selection, and tighter screening, the programme is set to become more exclusive than ever before.
For Indian professionals, the message is clear:
Higher skills, higher salaries, and stronger credentials will now matter more than ever.
