H-1B Lottery Replaced by Wage-Based Pick
On December 23, 2025, the Department of Homeland Security announced a final rule that changes one of the most consequential steps in U.S. employment immigration: how H-1B specialty-occupation visas are selected when there are more registrations than visas available. The longstanding random lottery is being replaced with a wage-weighted selection that gives greater odds to higher-paid, higher-skilled positions.
This is general information about a current rule, not legal advice. Confirm details at uscis.gov.
What changed
Each year, the number of new H-1B visas is capped at 65,000, plus an additional 20,000 for holders of U.S. advanced degrees. When demand exceeds the cap — as it routinely does — USCIS has used a random lottery to choose which registrations advance.
Under the new rule, that random selection is replaced by a weighted process: registrations tied to higher wage levels receive greater weight, increasing their probability of selection. DHS said the change is intended to "prioritize the allocation of visas to higher-skilled and higher-paid" workers and to protect U.S. workers' wages and opportunities, while still allowing employers to secure H-1B workers at all wage levels.
Key date: the final rule is effective February 27, 2026, and applies to the FY 2027 H-1B cap registration season.
Related: the $100,000 proclamation
DHS noted the rule sits alongside other H-1B changes, including a Presidential Proclamation requiring employers to pay an additional $100,000 per visa as a condition of eligibility. Employers planning H-1B sponsorship should factor these developments into their strategy and budgeting.
What this means
- For employers: wage level now affects selection odds. Petitioners may need to reconsider offered wage levels and which roles to register, and account for added costs. Planning ahead of the FY 2027 registration window is essential.
- For prospective H-1B workers: positions at higher wage levels are more likely to be selected. This may influence how and where candidates pursue sponsorship.
- For everyone: this is a significant structural change to a program that has run on a random lottery for years — expect the details and any legal challenges to keep evolving.
Why this matters
For thousands of skilled workers and the U.S. companies that hire them, H-1B selection has always involved a measure of luck. Shifting to a wage-weighted system changes the calculus entirely — it rewards higher-paid offers and pushes employers to plan carefully. Getting the registration strategy right, on the new timeline, can make the difference between a selected case and a missed year.
How we can help
If you are an employer planning H-1B sponsorship, or a worker whose future depends on selection, we can help you understand the new weighted process, the timing for the FY 2027 season, and how the added costs and rules fit your situation. As a firm led by a former U.S. Immigration Judge, we help businesses and professionals navigate employment immigration. To plan ahead, contact us.
Frequently asked questions
Is the H-1B lottery gone?
The random lottery is being replaced by a wage-weighted selection that gives higher-paid, higher-skilled registrations a greater chance of selection. Employers can still register workers at all wage levels.
When does the new H-1B selection rule take effect?
It is effective February 27, 2026, and applies to the FY 2027 H-1B cap registration season.
How many H-1B visas are available each year?
The annual cap is 65,000, plus 20,000 more for holders of U.S. advanced degrees.
What is the $100,000 figure?
DHS referenced a Presidential Proclamation requiring employers to pay an additional $100,000 per visa as a condition of eligibility — a separate measure to factor into H-1B planning.
This article is general legal information about a current rule, not legal advice, and does not create an attorney–client relationship. Rules, dates, and fees change; confirm the current requirements at uscis.gov and consult a qualified attorney about your specific situation.