Introduction

As of December 23, 2025, the Department of Homeland Security (DHS) and U.S. Citizenship and Immigration Services (USCIS) have introduced a major update to the H-1B visa program. This change replaces the random lottery with a weighted selection process that gives preference to higher-wage, more skilled positions. If you’re an aspiring immigrant professional hoping to work in the U.S., or an immigration attorney advising clients, this reform could significantly impact your plans. We’ll break it down in simple terms while providing the key details you need to navigate these changes effectively. 

At MyAttorneyUSA.com, we have ample experience in helping immigrants and professionals understand complex U.S. immigration rules. For a foundational overview, check out our guide on H-1B visa basics: What you need to know. 

Understanding the H-1B Visa Program

The H-1B visa allows U.S. companies to hire foreign workers for specialty jobs that require at least a bachelor’s degree or equivalent experience, such as in tech, engineering, or healthcare. Congress sets an annual cap of 65,000 visas in the regular category, plus 20,000 more for those with a U.S. master’s degree or higher (the “master’s cap”). Demand is huge—often over 400,000 applications—so USCIS has used a random lottery to pick winners. For context, in FY 2025, USCIS received approximately 470,000 eligible registrations, a notable decrease from 759,000 in FY 2024, attributed to earlier anti-fraud measures like the beneficiary-centric registration introduced that year, which reduced multiple filings per individual from an average of 1.70 to 1.06. 

Established by the Immigration Act of 1990, the H-1B program was designed to address shortages in skilled labor, particularly during the tech boom of the 1990s. Over the years, it has seen temporary cap increases (e.g., to 195,000 in the early 2000s) before reverting to current levels in 2004, and has issued millions of visas, becoming a cornerstone for industries like technology. 

However, this system has faced criticism for allowing some employers to flood the lottery with low-wage entries, potentially harming U.S. workers by driving down salaries. The new rules aim to fix this by focusing on wage levels and skills, aligning with the Trump administration’s goal to attract top talent while protecting American jobs. 

If you’re new to this, our article on common H-1B myths debunked explains why these changes matter for everyday applicants. 

How the New Weighted Selection Works

Starting February 27, 2026, for the FY 2027 H-1B season (registrations likely open in March 2026), USCIS will use a “beneficiary-centric” weighted system instead of a pure lottery. Here’s what that means in plain language:

  • One Entry Per Person: No matter how many companies register you, you’re only counted once. If multiple registrations, the lowest wage level is used for weighting—to prevent gaming the system.
  • Weighting Based on Wages: Your chances depend on the job’s wage level from the Department of Labor’s Occupational Employment and Wage Statistics (OEWS) data. This is tied to the job’s Standard Occupational Classification (SOC) code—a code that describes your role—and the work location.

OEWS divides wages into four levels based on percentiles (think of it as ranking salaries in your field and area):

  • Level I (Entry-Level, 17th percentile): For beginners with routine tasks; lowest chance (1 entry in the pool). About 83% of workers earn more.
  • Level II (Qualified, 34th percentile): For fully qualified workers; better odds (2 entries). Still below average pay.
  • Level III (Experienced, 50th percentile): Median wage for independent pros; good chance (3 entries).
  • Level IV (Fully Competent, 67th percentile): For experts or leaders; best odds (4 entries). Only 33% earn more.

For example, entry-level tech jobs might see selection odds drop to about 15% (a 48% decrease from the current ~30% random chance), while senior roles could jump to over 60% (a 107% increase). This encourages employers to offer competitive pay.

  • SOC Codes in Tech: Common tech jobs use codes like 15-1252 for Software Developers (designing apps) or 15-1211 for Computer Systems Analysts (improving systems). Employers must pick the right SOC code and wage level during registration, matching the job duties exactly. Tools like the BLS website or O*NET can help verify.
  • Registration Details: Include the SOC code, OEWS wage level, offered salary, and location. The full petition later must back this up, or it could be denied. This applies to both caps, with regular processed first.

To highlight the differences, here’s a comparison between the old and new systems: 

FeaturePrevious Random LotteryNew Weighted Selection
Selection Method Pure chance, regardless of wage or skill Weighted by OEWS wage level (1-4 entries) 
Multiple Registrations Allowed multiples per beneficiary, favoring high-volume filers Beneficiary-centric: one entry per person, using lowest wage level 
Impact on Entry-Level Equal odds for all Lower odds (e.g., ~15% for Level I) 
Impact on Senior Roles Equal odds for all Higher odds (e.g., >60% for Level IV) 
Primary Goal Equitable distribution via luck Prioritize high-wage, skilled workers to protect U.S. jobs 

Universities and nonprofits are exempt from the cap, so they aren’t affected. For more on wage requirements, see our in-depth piece on labor condition applications (LCA) explained. 

The $100,000 Fee: Another Layer of Reform

On September 19, 2025, a Presidential Proclamation added a $100,000 one-time fee for many new H-1B petitions filed after September 21, 2025. Paid by employers, it targets initial visas for those abroad or needing consular processing. Exemptions cover extensions, changes of status (e.g., from student visas), and national interest cases. 

This fee, combined with weighting, makes hiring entry-level talent from overseas costlier. Multiple lawsuits have been filed challenging the fee’s legality under the Immigration and Nationality Act and Administrative Procedure Act, with some dismissed and others ongoing as of December 24, 2025. If you’re an international student on OPT, read our article Transitioning from F-1 to H-1B: Tips for success for strategies. 

What This Means for You

For Immigrant Applicants

If you’re a recent grad or early-career professional, lower-wage offers (Levels I-II) mean tougher odds—especially in tech, where ~60% of past H-1Bs were at these levels and approximately 90% of applications from international students fall into Level I or II. Focus on building experience or negotiating higher pay. International students in STEM (making up ~70% of AI grads) might feel the pinch, but the system still allows selections at all levels. 

For Employers and Immigration Professionals

Small firms or startups may struggle with entry-level hires, risking offshoring. In contrast, major tech giants like Amazon (with over 4,600 initial H-1B approvals in FY 2025), Meta, Microsoft, and Google—dominating the top spots—may leverage their ability to offer higher wages to secure talent. Review job descriptions now to aim for higher levels—e.g., emphasize supervisory duties for Level IV. DHS projects $502 million in first-year wage benefits and boosted innovation. Attorneys: Watch for mismatches in SOC codes (e.g., 15-1251 for Programmers vs. 15-1254 for Web Developers) that could lead to denials. 

Critics say it ignores talent in new fields, but supporters highlight reduced abuse. Explore alternatives in our guide H-1B Alternatives: O-1, L-1, and more. 

Lawsuits from businesses and universities are anticipated, arguing the rule exceeds DHS authority by introducing qualitative criteria not specified in statute. DHS defends it as a permissible interpretation of ambiguous filing provisions. Outcomes could delay or alter implementation. 

In summary, these reforms shift H-1B toward high-skill, high-wage roles, benefiting top talent while challenging others. Whether you’re applying or advising, MyAttorneyUSA.com is here to help. Contact our experts for tailored advice, and browse recent immigration updates for more news. 

Proponents Say:

  1. The weighted system prioritizes higher-skilled and higher-paid workers, protecting American wages, working conditions, and job opportunities by reducing competition from low-wage foreign labor.
  2. It replaces the exploitable random lottery, which allowed employers to flood the system with low-wage applications, thus preventing abuse and ensuring a fairer process.
  3. The change aligns with Congress’s original intent for the H-1B program, using wages as a proxy for skills and labor shortages to fulfill statutory goals.
  4. It strengthens U.S. competitiveness by incentivizing petitions for top talent, boosting innovation and economic contributions from the best and brightest.
  5. While maintaining access for all wage levels, it increases selection odds for higher levels (e.g., 61% for Level IV vs. 15% for Level I), rewarding merit without cutting total visas.
  6. The rule encourages employers to offer fairer, market-commensurate wages, reducing underpayment and protecting U.S. workers from wage depression.
  7. It improves the overall skill mix in the H-1B program, ensuring visas go to employers facing genuine talent shortages as indicated by higher wages.
  8. By using wage levels tied to occupation and location, it promotes a broader distribution of visas across regions and fields, avoiding bias toward high-cost areas.
  9. The beneficiary-centric approach curbs gaming by multiple registrations, making the process more efficient and equitable for high-value workers.
  10. It addresses long-standing flaws in the random system without reducing the number of H-1B workers, focusing on quality over quantity for better economic outcomes.

Opponents Say:

  1. The rule disadvantages recent graduates and international students, who often start at lower wage levels (90% at Levels I-II), making it harder for them to secure visas despite their cutting-edge skills.
  2. It misuses DOL wage levels, which measure experience and job requirements, not innate talent or potential, shifting policy toward mid-career professionals over innovative young talent.
  3. By favoring higher experience, it could harm innovation, as entry-level roles in startups or research often require the latest training but offer lower starting pay.
  4. The systems are incompatible: DOL levels ensure fair pay relative to job duties, not as a skill proxy, leading to inaccurate prioritization of “value” to the economy.
  5. It violates U.S. immigration law by exceeding DHS authority, adding unauthorized qualitative criteria like salary to the statutory “order of filing” process.
  6. Restricting H-1B access could harm U.S. workers, as evidence shows H-1B presence lowers unemployment, boosts wages, and improves job matches for Americans.
  7. It hinders filling critical shortages in sectors like healthcare, where 78% of H-1B roles are at lower levels, especially impacting rural and underserved areas with budget constraints.
  8. The change doesn’t fully eliminate low-wage allocations and may still allow outsourcing abuses, requiring broader reforms like better enforcement and wage rules.
  9. It risks legal vulnerabilities and court challenges for not adhering strictly to statutory language, potentially delaying implementation and creating uncertainty.
  10. By not addressing root issues like the low visa cap or program flaws, it could lead to talent loss abroad or increased offshoring, hurting U.S. competitiveness long-term.

Endnotes

  1. U.S. Dep’t of Homeland Sec., DHS Changes Process for Awarding H-1B Work Visas to Better Protect American Workers (Dec. 23, 2025)
  2. T.J. Muscaro, Trump Admin Confirms New H-1B Process, Epoch Times (Dec. 23, 2025)
  3. Weighted Selection Process for Registrants and Petitioners Seeking To File Cap-Subject H-1B Petitions, 90 Fed. Reg. _ (Dec. 29, 2025) (to be codified at 8 C.F.R. pt. 214)
  4. Stuart Anderson, DHS Finalizes Controversial Immigration Rule On H-1B Lottery, Forbes (Dec. 23, 2025)
  5. DHS Finalizes Weighted Selection Rule for H1B Cap Registrations, Murthy L. Firm (Dec. 23, 2025)
  6. Stuart Anderson, Businesses Face Tough Task In $100,000 H-1B Fee Immigration Court Case, Forbes (Dec. 22, 2025)
  7. US Judge Rejects Business Group’s Challenge to Trump’s $100,000 H-1B Visa Fee, Reuters (Dec. 24, 2025)
  8. Attorney General Bonta Sues Over Trump Administration’s Unlawful New $100K Fee for H-1B Visas, Cal. Dep’t Just. (Dec. 12, 2025)
  9. District Court Judge Issues Opinion Upholding $100000 H-1B Fee, Fragomen (Dec. 24, 2025)
  10. Lawsuit Challenges $100,000 H-1B Visa Entry Fee, Envoy Glob. (Oct. 16, 2025)
  11. USCIS Data Shows Dramatic Decrease in H-1B Registrations for FY 2025, Ogletree Deakins (May 7, 2024)
  12. FY 2025 H-1B Cap Registration Statistics Released, TandS Law (May 2, 2024)
  13. H-1B visa, Wikipedia (last visited Dec. 24, 2025).
  14. Stuart Anderson, Top U.S. Technology Companies Dominate H-1B Visa List In 2025, Forbes (Nov. 17, 2025)
  15. Nat’l Found. for Am. Pol’y, H-1B Petitions and Denial Rates FY 2025 (Nov. 17, 2025)