DHS Overhauls the H-1B Lottery: What Employers and Foreign Workers Need to Know

The Department of Homeland Security (DHS) has announced a major change to how H-1B work visas will be selected in the future. For the first time, the government is moving away from the long-criticized random lottery system and replacing it with a weighted selection process that favors higher-paid and higher-skilled workers.

This update will significantly impact U.S. employers, foreign professionals, and companies that rely on the H-1B program to hire specialized talent.

With selection probability now directly tied to your offered salary, early wage-level mapping is no longer optional—it is the foundation of your H-1B strategy.

Why DHS Is Changing the H-1B Selection System

For years, the H-1B lottery allowed employers to submit registrations with no consideration of wage level or job complexity. DHS determined that this system was increasingly being used to bring in lower-paid foreign workers, often at the expense of U.S. workers performing similar roles.

According to DHS, the new system is intended to:

  • Protect wages and working conditions for U.S. workers
  • Discourage mass filings for low-wage positions
  • Incentivize employers to offer competitive salaries
  • Strengthen the overall integrity of the H-1B program

How the New Weighted H-1B Selection Will Work

Instead of selecting registrations at random, USCIS will now assign greater selection priority to H-1B registrations tied to higher wages and skill levels.

Key points to understand:

  • Higher-paid positions will have a better chance of selection
  • Lower-wage positions are still eligible but less competitive
  • The annual H-1B cap remains unchanged (65,000 regular cap + 20,000 U.S. master’s cap)
  • The rule takes effect February 27, 2026, and will apply to the FY 2027 H-1B cap season

This marks one of the most significant shifts in H-1B policy in decades.

What This Means for Employers

Employers should begin adjusting their workforce planning now. Under the new system, offering lower wages may significantly reduce the likelihood of H-1B selection.

Companies may need to:

  • Reevaluate offered wage levels
  • Review job classifications and SOC codes
  • Budget more carefully for foreign national hires
  • Explore alternative visa options if H-1B selection becomes less likely

DHS has made it clear that the goal is not to eliminate the H-1B program, but to ensure it is used for specialty occupations paid at market-appropriate wages.

Impact on Foreign Professionals and Students

For foreign professionals, particularly recent graduates, this change underscores the importance of:

  • Securing roles that align with higher wage levels
  • Understanding how wage data affects H-1B eligibility
  • Exploring long-term immigration strategies beyond H-1B alone

Students on F-1 OPT and STEM OPT should plan early and work closely with immigration counsel to remain competitive under the new system.

Additional Enforcement and Policy Direction

This rule aligns with broader H-1B reforms introduced by the administration, including increased employer obligations and higher financial requirements for participation in the program.

The overall message from DHS is clear: employers will be expected to justify both the skill level and the salary offered to foreign workers.

FAQ Under Blog

When does the new H-1B selection process begin?
The weighted selection system becomes effective on February 27, 2026, and will apply to the FY 2027 H-1B registration season.

Will lower-paid H-1B jobs still qualify?
Yes, but they will have a lower probability of selection compared to higher-paid roles.

Does this change the H-1B cap numbers?
No. The annual cap remains 65,000 regular H-1Bs plus 20,000 for U.S. advanced degree holders.

How should employers prepare now?
Employers should review wage levels, job descriptions, and long-term immigration strategies well before the next H-1B registration cycle.

Can NPZ Law Group help assess H-1B eligibility under the new rules?
Yes. Our office advises employers and foreign professionals on compliant H-1B strategies and alternative visa options based on evolving DHS policies.

Contact Information

If you or your family members have any questions about how immigration and nationality laws in the United States may affect you, or if you want to access additional information about immigration and nationality laws in the United States or Canada, please do not hesitate to contact the immigration and nationality lawyers at NPZ Law Group. You can reach us by emailing info@visaserve.com or by calling us at 201-670-0006 extension 104. We also invite you to visit our website at www.visaserve.com for more information.