• The Department of Homeland Security announced Tuesday it will replace the random H-1B lottery with a wage-weighted selection system effective February 27, 2026
• Higher wage levels will receive multiple entries in the selection pool, with Level 4 workers entered four times and Level 1 workers entered once
• Critics warn the changes could price out early-career professionals and recent graduates while supporters say it will prevent wage abuse

WASHINGTON, DC (TDR) — On Tuesday, the Trump administration announced a major change to the H-1B visa program. The current lottery system will be replaced by a wage-based selection process, giving priority to higher-paid jobs. This new system will affect the 85,000 work visas granted annually to foreign professionals. The rule will be implemented on February 27, 2026, for the 2027 fiscal year application period.

How The Weighted System Works

Under the current system, U.S. Citizenship and Immigration Services conducts a random lottery when applications exceed the 85,000 annual cap. The new weighted selection process assigns applicants to four Department of Labor wage levels, with higher earners receiving multiple lottery entries.

“The existing random selection process of H-1B registrations was exploited and abused by U.S. employers who were primarily seeking to import foreign workers at lower wages than they would pay American workers,” USCIS spokesman Matthew Tragesser said.

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Workers offered Level 4 positions, averaging approximately $162,528 annually, will be entered into the selection pool four times. Level 3 workers at the median wage get three entries, Level 2 workers at the 34th percentile receive two entries, and Level 1 entry-level workers earning around the 17th percentile get just one entry.

Administration Claims Program Reform Needed

The Department of Homeland Security said the changes aim to “better protect the wages, working conditions, and job opportunities for American workers” by incentivizing employers to petition for higher-paid, higher-skilled foreign workers. The policy follows Trump’s September announcement of a controversial $100,000 fee for new H-1B applications.

“The new weighted selection will better serve Congress’ intent for the H-1B program and strengthen America’s competitiveness by incentivizing American employers to petition for higher-paid, higher-skilled foreign workers,” Tragesser stated.

This marks Trump’s second attempt to implement wage-based selection. His first administration finalized similar regulations in January 2021, but President Biden later withdrew them following legal challenges and industry opposition.

Critics Warn Of Unintended Consequences

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Business groups and immigration attorneys have raised concerns about the wage-based approach. They argue that Department of Labor wage levels may not accurately reflect worker skill levels and could eliminate opportunities for recent college graduates, including those from American universities.

Some attorneys warn the proposal may violate the Immigration and Nationality Act, which requires issuing visas in the order petitions are received. Legal challenges appear likely once the rule takes effect.

The policy change comes amid intense debate within Trump’s coalition over the H-1B visa program, with tech industry supporters like Elon Musk defending the program while populist conservatives like Steve Bannon call it a “total scam.”

Will wage-based selection genuinely prioritize skilled workers, or simply make the visa program inaccessible to emerging talent?

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