New H-1B Visa Regulations Favor Higher-Skilled Workers in the US

The US Department of Homeland Security has announced significant changes to the H-1B visa selection process, set to take effect on February 27. The new regulations aim to prioritize higher-skilled and better-paid workers, moving away from the previous lottery system. This shift is expected to enhance job opportunities and wages for American workers. With a cap of 65,000 visas annually, plus an additional 20,000 for advanced degree holders, the majority of H-1B visa holders have been Indian nationals. The changes reflect a broader strategy to address wage concerns and labor market dynamics.

By Narendra Chaudhary Dec 24, 2025, 08:42 IST

Changes to H-1B Visa Selection Process Announced

On Tuesday, the Department of Homeland Security in the United States revealed that it has finalized changes to the regulations surrounding the H-1B visa selection process. These amendments aim to prioritize applicants who possess higher skills and earn better salaries.

These new regulations will come into effect on February 27 and will apply to the registration period for the fiscal year 2026-2027. The annual cap for H-1B visas is set at 65,000, with an additional 20,000 reserved for holders of advanced degrees from US institutions.

The H-1B visa program enables US companies to temporarily hire foreign professionals in specialized fields.

In recent years, Indian nationals have made up the largest share of H-1B visa recipients, accounting for 72.3% of all visas issued in the fiscal year 2022-2023.

The Trump administration stated that the shift from a lottery-based system to one that emphasizes higher-skilled individuals is intended to enhance the protection of wages, working conditions, and job opportunities for American workers.

Matthew Tragesser, a spokesperson for the US Citizenship and Immigration Services, noted that the previous lottery system had been misused by employers seeking to hire foreign workers at lower wages than what they would offer American employees.

Earlier, on September 23, the Trump administration had proposed these regulatory changes, shortly after the White House issued a proclamation on September 19 that required companies to pay a one-time fee of $100,000 for new H-1B visa applicants.

Previously, companies were required to pay $215 to enter the H-1B visa lottery, along with various other filing fees.