The U.S. Department of Homeland Security has announced a sweeping change to the H-1B work visa program, replacing the long-standing random lottery with a merit-based, weighted selection system. Beginning with fiscal year 2027 registrations on February 27, 2026, the new approach is designed to prioritize higher-skilled and better-paid professionals when distributing the annual quota of 85,000 visas.

Under the revised system, applications will be ranked using wage data from the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics. Positions in the highest wage category will receive the greatest advantage, with level-4 jobs earning four selection entries, level-3 positions receiving two, level-2 roles gaining one and a half, and entry-level level-1 roles receiving just one. This marks a sharp departure from the previous lottery model, in which more than 400,000 registrations competed each year and large consulting firms often dominated the process through mass filings.

DHS says the shift is intended to protect U.S. workers from wage suppression and reduce fraud, particularly from outsourcing firms that previously exploited loopholes. The change aligns with broader immigration reforms under President Trump’s administration, including a proposed 100,000-dollar H-1B application fee aimed at discouraging low-value hiring. After a public comment period, the final rule is scheduled for official publication on December 29, 2025.

The new policy is expected to significantly reshape global talent recruitment, especially within the technology sector. Indian nationals, who have historically received more than 70 percent of H-1B approvals, may experience mixed outcomes. Senior engineers, researchers, and highly paid specialists are likely to benefit, while recent graduates and junior professionals, particularly those working through large outsourcing firms, may face much tougher odds. Startups that rely on entry-level foreign talent may turn increasingly to domestic hiring, potentially pushing average H-1B salaries higher, with some projections suggesting an increase from roughly 106,000 dollars to about 172,000 dollars.

For employers and applicants, accurate wage classification during the March 2027 registration period will be critical to improving selection chances. Prospective H-1B candidates are being advised to strengthen their profiles by targeting higher-level roles, building several years of experience, and negotiating competitive compensation. USCIS has encouraged all parties to follow official announcements closely as detailed implementation guidance becomes available ahead of the program’s launch next year.