US Shifts H-1B Visa Lottery to Skills-Based System, Favouring Higher-Paid Workers

The US Department of Homeland Security has announced a significant change to the H-1B work visa selection process, replacing the random lottery system with a skill-based and wage-driven system. This shift, effective from February 27, 2026, aims to protect American workers by prioritising higher-skilled and higher-paid foreign workers. The new rule, set to be implemented for the FY 2027 H-1B cap registration season, will give more weight to applicants with higher skills and wages, rather than relying on a random draw. This move has been welcomed by the US Citizenship and Immigration Services, which claims it will 'strengthen America's competitiveness' by incentivising employers to seek higher-skilled workers. According to the DHS, the current lottery system had been 'exploited' and 'abused' by employers seeking to import foreign workers at lower wages than those paid to American workers. The new weighted selection process aims to address these concerns, ensuring that H-1B visas are allocated to workers who will not negatively impact the US workforce. Critics of the new rule have argued that it may disproportionately affect Indian workers, who are major beneficiaries of the H-1B visa programme. However, the Trump administration has maintained that the move is necessary to protect American workers and maintain the competitiveness of US businesses. Key changes to the H-1B programme, including a hike in visa fees to $100,000 per visa, are part of the administration's efforts to reform the programme and prevent abuse. The new rule is set to be implemented in the coming months, with a significant impact on the US job market and immigration policies.