The Department of Homeland Security (DHS) has announced major changes to the H-1B visa program, replacing the long-standing random lottery system with a weighted selection process that prioritises higher-skilled and higher-paid foreign workers. The move aims to safeguard wages, working conditions and job opportunities for American workers.Under the new rule, employers seeking H-1B visas will have a greater chance of success if they petition for candidates at higher wage levels.
The annual cap of 65,000 visas, plus 20,000 for US advanced degree holders, remains unchanged. However, the selection process will now favour applicants who strengthen America’s competitiveness rather than undercut domestic labour.
“The existing random selection process was exploited by employers seeking to import foreign workers at lower wages,” said USCIS spokesman Matthew Tragesser. “The new weighted selection will better serve Congress’ intent for the H-1B program.”
The rule will come into effect on February 27, 2026, and will apply to the FY 2027 H-1B cap season. It complements other reforms, including a $100,000 additional fee per visa mandated by a recent Presidential Proclamation.The change marks a significant shift in US immigration policy, reinforcing the Trump Administration’s commitment its “America First” agenda.
The annual cap of 65,000 visas, plus 20,000 for US advanced degree holders, remains unchanged. However, the selection process will now favour applicants who strengthen America’s competitiveness rather than undercut domestic labour.
“The existing random selection process was exploited by employers seeking to import foreign workers at lower wages,” said USCIS spokesman Matthew Tragesser. “The new weighted selection will better serve Congress’ intent for the H-1B program.”
The rule will come into effect on February 27, 2026, and will apply to the FY 2027 H-1B cap season. It complements other reforms, including a $100,000 additional fee per visa mandated by a recent Presidential Proclamation.The change marks a significant shift in US immigration policy, reinforcing the Trump Administration’s commitment its “America First” agenda.
Impact on India’s IT industry
The US decision to scrap the H-1B lottery and adopt a weighted selection favoring higher-paid, higher-skilled roles likely will significantly impact India’s IT industry.
Indian software services exporters such as Tata Consultancy Services (TCS), Infosys and Wipro and others that have benefitted from the program will have to reorient hiring strategy especially vis-à-vis mid-level and entry-level talent.
The additional $100,000 visa fee adds cost pressure, eroding outsourcing advantages.
