US Shifts H-1B Visa Lottery to Favor Higher-Paid Workers, Impacting Indian Professionals

The US Department of Homeland Security has introduced a new weighted selection process for H-1B visas, prioritising higher-skilled and higher-paid foreign workers. This shift, effective February 27, 2026, aims to make it more challenging for entry-level professionals, particularly from India, to secure American work visas. The new system, set to govern the allocation of approximately 85,000 H-1B visas annually from fiscal 2027, gives greater weight to applications from higher-paid workers while maintaining opportunities for employers to hire at various wage levels. This change marks a significant overhaul of the US work visa allocation process, moving away from the previous random lottery system. US Citizenship and Immigration Services spokesman Matthew Tragesser stated that the new system will better serve Congress' intent for the H-1B programme and strengthen America's competitiveness by incentivising employers to petition for higher-skilled foreign workers. Immigration experts warn that the change will disproportionately affect younger professionals and those with lower-paid jobs, who are less likely to be selected under the new system. Indian nationals, who account for over 70% of H-1B visas issued annually, will be particularly impacted. Critics of the previous random lottery system argue that it allowed for the importation of entry-level workers from India and China, often paid below-median wages, rather than filling specialised roles requiring unique expertise. The new wage-based lottery system is expected to decrease demand for skilled immigration, particularly affecting aspiring immigrants who are entry-level workers. The US labour department has already introduced several restrictions on employment-based immigration, including a $100,000 fee on new H-1B visa petitions and an enforcement initiative that has uncovered over $15 million in back wages owed to workers. Technology companies, the largest users of the H-1B programme, are facing uncertainty due to the policy changes, with some advising employees against international travel due to visa processing delays.