WASHINGTON: The US government is scrapping the lottery system used for decades to issue H-1B work visas and replacing it with a model that favours higher-paid, more skilled foreign workers, the Department of Homeland Security said.
The move is the latest step by the Trump administration to reshape one of America’s most controversial work visa programmes, long criticised by conservatives who argue it allows companies to hire cheaper foreign labour, and defended by business groups as essential for innovation and growth.
Lottery system to be replaced from 2026
Under the new rule, H-1B visas will no longer be awarded through a random draw. Instead, applications will be selected through a weighted process that increases the likelihood of visas going to workers offered higher wages and roles requiring greater skill, according to a DHS press release.
“The existing random selection process of H-1B registrations was exploited and abused by US employers who were primarily seeking to import foreign workers at lower wages than they would pay American workers,” said Matthew Tragesser, a spokesman for US Citizenship and Immigration Services.
The revised system will take effect on February 27, 2026, and will apply to the upcoming H-1B cap registration season.
Part of wider Trump immigration push
The change comes amid a broader set of immigration measures announced by President Donald Trump this year.
Earlier, Trump signed a proclamation requiring employers to pay an additional USD 100,000 per H-1B visa annually for highly skilled workers, a measure that is now facing a legal challenge. The administration has also unveiled a USD 1 million “gold card” visa, offering a pathway to US citizenship for wealthy individuals.
A DHS statement said the new H-1B rule is aligned with these earlier steps, including the additional per-visa fee requirement.
Who benefits from H-1B visas
Demand for H-1B visas has consistently outpaced supply. The programme allows 65,000 new visas annually, with an extra 20,000 reserved for applicants holding a master’s degree or higher.
This year, Amazon emerged as the largest recipient, securing more than 10,000 approved visas. Tata Consultancy Services followed, along with major US technology firms such as Microsoft, Apple, and Google. California continues to host the highest concentration of H-1B workers.
Supporters see talent pipeline, critics see wage pressure
Supporters of the H-1B programme say it remains a crucial route for hiring skilled professionals, particularly in sectors such as healthcare and education. They argue the programme fuels innovation and helps employers fill specialised roles that are hard to staff domestically.
Critics, however, contend that many visas go to entry-level positions rather than senior, highly specialised jobs. Although the programme is designed to curb wage undercutting and protect US workers from being replaced, critics argue that employers can still keep pay low by slotting jobs into the lowest skill categories, even when hires bring higher experience levels.
By tying visa selection more closely to pay and skill levels, the administration says the new system is intended to address these concerns, though legal and industry pushback is expected as the changes move closer to implementation.
Agencies
US ends H-1B visa lottery, shifts to system favouring higher-paid skilled workers
