US ends H-1B visa lottery, shifts to system favors high-paid skilled workers
By Anjali Sharma
WASHINGTON – The Department of Homeland Security said on Wednesday that the US government is scrapping the lottery system used for decades to issue H-1B work visas and replacing it with a model that favors higher-paid, more skilled foreign workers from 2026, as part of wider immigration changes.
It said that the move is the latest step by the Trump administration to reshape one of America’s most controversial work visa programmes, long criticized by conservatives who argue it allows companies to hire cheaper foreign labour, and defended by business groups as essential for innovation and growth.
According to a DHS press releaseuUnder the new rule, H-1B visas will no longer be awarded through a random draw. Instead, applications will be selected through a weighted process that increases the likelihood of visas going to workers offered higher wages and roles requiring greater skill.
Matthew Tragesser, a spokesman for US Citizenship and Immigration Services said “The existing random selection process of H-1B registrations was exploited and abused by US employers who were primarily seeking to import foreign workers at lower wages than they would pay American workers,”.
The revised system will take effect on February 27, 2026, and will apply to the upcoming H-1B cap, he said
The change came after a broader set of immigration measures announced by President Donald Trump this year.
Trump signed a proclamation requiring employers to pay an additional USD 100,000 per H-1B visa annually for highly skilled workers, a measure that is now facing a legal challenge.
The administration has also unveiled a USD 1 million “gold card” visa, offering a pathway to US citizenship for wealthy individuals.
A DHS statement said the new H-1B rule is aligned with these earlier steps, including the additional per-visa fee requirement.
Demand for H-1B visas has consistently outpaced supply. The programme allows 65,000 new visas annually, with an extra 20,000 reserved for applicants holding a master’s degree or higher.
Amazon emerged as the largest recipient, securing more than 10,000 approved visas.
Tata Consultancy Services followed with major US technology firms such as Microsoft, Apple, and Google.
The report said that California continues to host the highest concentration of H-1B workers.
Supporters of the H-1B programme said it remains a crucial route for hiring skilled professionals, particularly in sectors such as healthcare and education.
They argued the programme fuels innovation and helps employers fill specialized roles that are hard to staff domestically.
Critics contend that many visas go to entry-level positions rather than senior, highly specialized jobs.
The programme is designed to curb wage undercutting and protect US workers from being replaced, critics argued that employers can still keep pay low by slotting jobs into the lowest skill categories, even when hires bring higher experience levels.
The administration said the new system is intended to address these concerns, though legal and industry pushback is expected as the changes move closer to implementation by tying visa selection more closely to pay and skill level.
