US removes H-1B visa lottery selection: How will it impact Indian workers?

The US Department of Homeland Security (DHS) on Tuesday (local time) announced amendments to regulations governing the H-1B visa programme, introducing a weighted selection system that will prioritise higher-skilled and higher-paid workers, replacing the existing random lottery process.

 

In a circular, the US Citizenship and Immigration Services (USCIS) said the changes are aimed at better protecting American workers. "DHS is amending regulations governing the H-1B work visa selection process to prioritise the allocation of visas to higher-skilled and higher-paid aliens to better protect the wages, working conditions, and job opportunities for American workers," it said.

What does the rule say?

Under the new system, visas will be allocated based on skill levels and offered wages rather than through random selection. "The new rule replaces the random lottery for selecting visa recipients with a process that gives greater weight to those with higher skills," USCIS said.

 

 

The final rule will come into effect on February 27, 2026, and will apply to the FY 2027 H-1B cap registration season.

What will be the impact on Indian workers?

The changes are expected to significantly affect Indian workers, who are one of the largest beneficiaries of the H-1B visa programme. Under the new model, applicants with higher skill levels and higher salaries will have a stronger chance of securing one of the limited H-1B visas issued each year.

 

Meanwhile, mid-career and entry-level applicants may face increased difficulty under the revised rules.

 

According to US government data, Indians account for over 70 per cent of all H-1B visas issued annually. An estimated 300,000 Indian professionals, especially in technology, engineering, and services, are currently working in the US on H-1B visas.

Why is US changing H-1B visa rule?

USCIS said the current random selection process is being exploited by certain employers who submit large numbers of registrations for lower-paid, lower-skilled foreign workers, undermining US workers.

 

USCIS spokesperson Matthew Tragesser said, "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."

 

He added that the weighted selection system would better align with Congress’s intent for the H-1B programme and strengthen US competitiveness by encouraging employers to hire higher-skilled and higher-paid foreign professionals.

Wider immigration crackdown

The move comes amid a broader immigration crackdown under the Trump administration. The government has tightened visa rules, increased scrutiny of employers, and imposed additional costs on H-1B applications.

 

“As part of the Trump Administration’s commitment to H-1B reform, we will continue to demand more from both employers and aliens so as not to undercut American workers and to put America first,” Tragesser said.

 

Earlier this year, the Trump administration imposed a new $100,000 annual fee on H-1B applications, making it much costlier for employers to hire foreign workers.

 

DHS also said it has received enough petitions to meet the congressionally mandated cap of 65,000 regular H-1B visas and 20,000 visas under the US advanced degree exemption, commonly known as the master’s cap, for the financial year 2026.