New H-1B Visa System: Prioritizing Skilled Foreign Workers Over Lottery Selection

The Department of Homeland Security has announced a major change to the H-1B visa program, replacing the lottery system with a new selection process that prioritizes skilled and higher-paid foreign workers. This shift, effective February 2026, aims to address concerns about wage suppression and the influx of lower-paid foreign labor. Advocates argue that the program is essential for filling specialized roles in healthcare and education, while critics highlight its tendency to favor entry-level positions. The annual cap on new visas remains at 65,000, with an additional 20,000 for master's degree holders. Read on to learn more about these significant changes.

By Narendra Chaudhary Dec 24, 2025, 10:07 IST

Significant Changes to H-1B Visa Process Announced

Washington: The Department of Homeland Security announced on Tuesday a significant overhaul of the H-1B work visa program, moving away from the traditional lottery system to a new method that emphasizes skilled and higher-paid foreign workers.

This shift comes in response to previous actions taken by the Trump administration, which aimed to reform a visa program that critics argue has facilitated the influx of foreign workers willing to accept lower wages, while proponents claim it fosters innovation.

Matthew Tragesser, a spokesperson for US Citizenship and Immigration Services, stated, “The previous random selection method for H-1B registrations was misused by employers looking to hire foreign workers at lower salaries than they would offer American employees.”

Earlier this year, President Trump enacted a proclamation that imposes a USD 100,000 annual fee for H-1B visas on highly skilled workers, a decision currently facing legal challenges. Additionally, he introduced a USD 1 million 'gold card' visa aimed at providing a route to US citizenship for affluent individuals.

According to a press release detailing the new regulations, this change aligns with other significant modifications made by the administration, including the requirement for employers to pay an extra USD 100,000 per visa to qualify.

Traditionally, H-1B visas have been distributed through a lottery system. In the current year, Amazon emerged as the leading recipient, securing over 10,000 visas, followed by Tata Consultancy Services, Microsoft, Apple, and Google. California remains the state with the highest number of H-1B visa holders.

The newly implemented system will introduce a weighted selection process designed to enhance the chances of allocating H-1B visas to foreign workers who are both highly skilled and well-compensated. This new approach is set to take effect on February 27, 2026, coinciding with the next H-1B cap registration period.

Advocates for the H-1B program argue that it is crucial for recruiting healthcare professionals and educators, asserting that it contributes to innovation and economic development in the US while enabling employers to fill specialized roles.

Conversely, critics contend that these visas are frequently awarded for entry-level positions rather than for senior roles that require specialized expertise. Although the program aims to prevent wage suppression and the displacement of American workers, detractors argue that companies can lower wages by categorizing jobs at the lowest skill levels, even when the hired workers possess significant experience.

The annual issuance of new H-1B visas is limited to 65,000, with an additional 20,000 available for individuals holding a master’s degree or higher.