US to Overhaul H-1B Visa System

The United States is preparing to make a significant change to its H-1B visa program by replacing the current lottery system with a merit-based selection process that prioritizes highly skilled workers and higher salaries. 

This change, aimed at attracting top global talent, has recently passed an important regulatory review and could take effect as early as March 2026. This shift may alter the prospects for foreign professionals seeking work opportunities in the US. The new regulation, officially called the "Weighted Selection Process for Registrants and Petitioners Seeking To File Cap-Subject H-1B Petitions" was approved on August 8 by the Office of Information and Regulatory Affairs (OIRA), part of the Office of Management and Budget. 

This approval follows its submission by the Department of Homeland Security (DHS) and US Citizenship and Immigration Services (USCIS) for review by the White House. For many years, the H-1B visa system has used a lottery to select applicants, giving each registered candidate an equal chance. Critics argue that this method does not properly consider applicants’ skills or economic contributions. The current annual cap on H-1B visas is 85,000, which includes 20,000 visas reserved for individuals with advanced US degrees.

The new system will introduce a weighted selection process that likely draws from a 2021 proposal under the Trump administration. That earlier plan aimed to prioritize applications based on offered wages, starting with the highest wage levels and moving downward. If implemented, the new rules may favor employers who offer higher salaries, potentially reducing the number of lower-paid H-1B positions. 

This could particularly impact sectors that depend on hiring entry-level foreign professionals. Employers might need to reconsider their hiring strategies, especially in industries where wages tend to be lower. Foreign workers, especially recent graduates or those early in their careers, could face greater challenges under the new system, which appears to favor experienced candidates with specialized skills. The regulation is expected to be finalized before the fiscal year 2027 H-1B visa season.