US ends H-1B lottery, rolls out skill-and-pay-based visa system

In a decisive shift, the United States is dismantling its long-standing H-IB visa lottery system and replacing it with a new weighted selection process designed to prioritize highly skilled, higher-paid foreign workers.

Announced by the department of homeland security, the revamped system is set to take effect on February 27, 2026, fundamentally reshaping the pathway for approximately 85,000 annual work visas starting with the fiscal 2027 registration season.

The overhaul, spearheaded during the Trump administration, responds to mounting criticism that the previous lottery mechanism was exploited by employers seeking cheaper overseas labor at the expense of American workers. “The existing random selection process of H-IB 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,” said US citizenship and immigration services spokesman Matthew Tragesser.

This new approach introduces a weighted system increasing the likelihood that visas will go to applicants with superior skills and higher pay packages. It aligns with other stringent measures including a controversial presidential proclamation imposing an additional $100,000 fee per visa for employers — aimed at further filtering the candidate pool.

For Indian professionals, who represent one of the largest segments of H-IB visa recipients —particularly in tech and healthcare — this recalibration marks a significant hurdle. The historically lottery-based system offered many young, entry-level workers a critical foothold in the US job market. Now, tougher salary and skill thresholds threaten to limit access for those not yet commanding high wages.

Industry giants like Amazon, Microsoft, Apple, Google, and Tata consultancy services have been top beneficiaries of the lottery, with California hosting the densest concentration of H-IB workers. Supporters argue the program remains vital for filling specialized roles in health care, education, and innovation-driven sectors that fuel US economic growth.

Yet critics contend that the visa system often funnels talent into entry-level roles that do not match their expertise, enabling wage suppression and disadvantaging American workers. With an annual cap of 65,000 visas plus 20,000 additional slots for advanced degree holders, the revamped process aims to recalibrate a program long caught between competing economic and political pressures.

As the US tightens the reins on its H-IB visa system, thousands of hopeful foreign professionals — especially from India — face a more competitive and selective future for working in America’s evolving job market.