In a major overhaul of the United States’ employment-based immigration framework, the H-1B visa lottery system has been officially scrapped, marking one of the most consequential changes to the programme in decades. Backed by former President Donald Trump, the reform replaces the random lottery with a skill- and salary-based weighted selection system, fundamentally altering how foreign professionals are chosen for one of the world’s most sought-after work visas.

The announcement, made by the US Department of Homeland Security (DHS), signals a decisive shift away from chance-based allocation toward a model that explicitly favours highly skilled and higher-paid workers. For Indian professionals—who historically account for a significant share of H-1B approvals—this change could reshape migration strategies, job choices and long-term career planning.

Why the H-1B visa lottery was scrapped

According to the DHS, the lottery-based H-1B system had been under criticism for several years. Officials argued that random selection failed to reflect the original intent of the programme, which was designed to help US employers hire specialised talent in fields where domestic shortages exist.

US Citizenship and Immigration Services (USCIS) spokesperson Matthew Tragesser stated that the lottery mechanism was repeatedly misused by some employers. He claimed that certain companies exploited the system to hire lower-skilled foreign workers at cheaper wages, rather than recruiting American workers or offering competitive salaries.

The DHS further noted that the lottery encouraged a flood of low-wage applications, which, according to officials, put downward pressure on salaries and limited opportunities for US workers. The department believes the new approach will better align the H-1B programme with economic priorities and labour market realities.

How the new H-1B selection system will work

Under the revised framework, H-1B visas will be allocated through a weighted selection process. Instead of every registered application having an equal chance, petitions offering higher wages and requiring advanced skills will receive greater weight during selection.

While employers will still be allowed to submit applications across various wage levels, the key change is that higher-paid, more specialised roles will be prioritised. This means candidates in advanced technology, engineering, research and specialised professional roles are likely to benefit the most.

The DHS clarified that the reform does not eliminate opportunities for all lower-wage roles but ensures that the system no longer treats all applications equally, regardless of skill level or salary.

Timeline and implementation details

The new regulations will come into force on February 27, 2026. Importantly, they will apply to the FY 2027 H-1B cap registration season, giving employers and applicants limited time to adapt their strategies.

Currently, the US issues 65,000 H-1B visas annually, with an additional 20,000 visas reserved for applicants holding advanced degrees from US institutions. These numerical caps will remain unchanged, but competition for selection is expected to intensify under the weighted system.

Impact on Indian professionals

Indian nationals consistently receive the largest share of H-1B visas, particularly in the technology, IT services, healthcare and engineering sectors. The shift away from a lottery is therefore especially significant for Indian applicants.

Professionals with higher salaries, niche skills and advanced qualifications are likely to see improved chances. Conversely, candidates in entry-level or lower-paid roles may face reduced odds unless employers significantly raise compensation or demonstrate specialised skill requirements.

The change may also influence career decisions, encouraging Indian students and professionals to pursue advanced degrees, specialised certifications and high-demand skill sets to remain competitive.

Part of broader Trump-era visa reforms

The DHS confirmed that scrapping the H-1B lottery is part of a wider set of employment visa reforms associated with the Trump administration’s immigration agenda. These reforms include stricter eligibility conditions, enhanced scrutiny of employers, and substantially higher fees linked to H-1B filings.

The administration has consistently argued that employment-based visas should prioritise protecting American wages while still allowing US companies access to world-class talent.

What’s next for H-1B applicants

For prospective applicants, the message is clear: skills, salary and specialisation now matter more than ever. Candidates are expected to align themselves with roles that demonstrate clear value addition to the US economy.

Employers, meanwhile, may need to reassess compensation structures, job descriptions and hiring strategies to remain competitive under the new system.

In conclusion, the end of the H-1B visa lottery marks a fundamental transformation of the US work visa landscape. While the reforms aim to curb misuse and prioritise high-skilled talent, they also raise the bar for foreign professionals—particularly Indians—seeking to work in the United States. As the new rules take effect in 2026, both applicants and employers will need to adapt quickly to this skill-first, salary-driven H-1B era.

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