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DHS Reshapes H-1B Lottery With New Weighted System Favoring Higher Skills and Wages

The U.S. Department of Homeland Security (DHS) has finalized a major change to the way H-1B visa registrations will be selected in the annual lottery, marking one of the most significant policy shifts to the program in recent years.

This means the new ruleโ€”officially titled โ€œWeighted Selection Process for Registrants and Petitioners Seeking to File Cap-Subject H-1B Petitionsโ€โ€”was released for public inspection on December 23 and is set to be published in the Federal Register on December 29, 2025. If this schedule holds, the changes will take effect on February 27, 2026, just in time for the FY 2027 H-1B registration cycle.

A Shift Toward Higher Skills and Higher Pay

For years, the H-1B visa lottery has relied on random selection whenever the number of applicants exceeded the annual cap, a scenario that has occurred consistently due to high demand. Under the new rule, DHS will begin using a weighted system designed to give applicants with higher wages and higher skill levels a greater chance of being selected.

In practical terms, this means the lottery will no longer treat every eligible application equally. Instead, the U.S. Citizenship and Immigration Services (USCIS) will assign each registration a weight based on the wage level associated with the offered position.

Furthermore, workers whose salary meets or exceeds higher federal wage tiers will receive more entries in the selection pool, and therefore a better statistical chance of being chosen. DHS argues that this change strengthens the original goals of the H-1B program: to allow American employers to hire foreign professionals in specialty occupations where skills and expertise are required at a competitive level.

How the Weighted System Will Work

The U.S. immigration department, DHS, has detailed the mechanics of the new process. Each H-1B registration will be evaluated based on the wage level it meets under the Occupational Employment and Wage Statistics (OEWS) system for the specific job classification and location. The higher the wage level, the more times registration will be entered into the selection pool:

Offered Wage LevelLottery Entries Assigned
Level IV (Highest)4 entries
Level III3 entries
Level II2 entries
Level I (Lowest)1 entry

Importantly, each unique beneficiary will only be counted once toward the annual visa cap, even if multiple registrations were submitted on their behalf. DHS believes this approach will limit abuse of the system, discourage employers from submitting mass registrations for lower-paid workers, and reduce the incentive to use the H-1B pathway for roles that do not genuinely require high-level expertise.

No Changes After Public Feedback

The weighted lottery proposal first appeared in September 2025 as part of a Notice of Proposed Rulemaking. After reviewing public comments from businesses, advocacy groups, and individuals, DHS decided to adopt the rule without modifying the regulatory text. The agency maintains that the final version aligns with congressional intent and balances industry access to skilled workers with protections for the U.S. labor market.

Impact on Employers and Workers

The new system does not shut the door on lower-wage applicants, but it does make it clear that priority will be given to positions that demand specialized knowledge and offer compensation that reflects those requirements. Employers hoping to sponsor H-1B candidates in the coming years may feel increasing pressure to raise wages or target higher-skilled roles if they wish to remain competitive during registration season.

For workers abroad and foreign graduates in the United States, the message is equally clear: stronger resumes, advanced skills, and higher-paying offers could make the difference between selection and rejection.

Looking Ahead to FY 2027

With these reforms officially scheduled to take effect ahead of the FY 2027 H-1B lottery, companies and prospective applicants have just over a year to adjust their hiring strategies and expectations. DHS believes the change will eliminate some of the vulnerabilities of the current system while reinforcing the H-1B programโ€™s original purposeโ€”supporting innovation and filling gaps in specialized fields.