U.S. to End Random H-1B Lottery, Introduce Skill and Wage Based Selection from 2026

The U.S. Department of Homeland Security (DHS) has announced a major overhaul of the H-1B work visa selection system, marking a significant departure from the long-standing random lottery process. Under the new framework, priority will be given to higher-paid and more highly skilled foreign workers, a move the Trump administration says is intended to protect American wages and job opportunities.

The revised rule, released late Tuesday, is scheduled to take effect on February 27, 2026, ahead of the opening of electronic registrations for the next H-1B cap season. Once implemented, the new system will replace the current lottery-based selection that has been used when applications exceed the annual quota.

In addition to the shift in selection criteria, the administration has proposed a steep $100,000 entry fee for new H-1B applications, along with higher minimum wage requirements for visa holders. Together, these measures are expected to significantly raise the cost and compliance burden for U.S. companies seeking to hire foreign professionals under the program.

At present, the H-1B visa program has an annual cap of 85,000 visas, including 20,000 reserved for applicants with U.S. master’s degrees or higher. Each year, registrations open in March, and because demand far exceeds the available slots, U.S. Citizenship and Immigration Services conducts a random lottery to select candidates. Employers whose registrations are chosen then submit full H-1B petitions on behalf of the selected beneficiaries.

The proposed changes are likely to make it more difficult for many foreign professionals—particularly early-career workers and those in lower-paying roles—to secure an H-1B visa. Immigration experts say the move could narrow access to the program and dampen prospects for individuals aspiring to work in the United States through traditional employment routes.

At the same time, industry analysts suggest the new rules could accelerate offshoring trends. As hiring foreign talent within the U.S. becomes more expensive and restrictive, companies may increasingly shift work to overseas locations. Countries such as India are expected to benefit from this shift, particularly through the expansion of global capability centres and offshore technology and services hubs.

While the administration maintains that the reforms will curb misuse of the H-1B program and prioritize top-tier talent, critics argue that the changes could disrupt workforce planning for U.S. businesses and reduce opportunities for skilled professionals seeking to build careers in America. The final impact is expected to become clearer as companies and applicants prepare for the transition ahead of the 2026 cap season.