Washington, D.C. – Indian and other foreign professionals dreaming of working in the U.S. received a major shock as the H-1B visa lottery system has officially been ended. The United States Citizenship and Immigration Services (USCIS) announced sweeping changes in the H-1B selection process to prioritize highly skilled workers receiving higher salaries over low-paid or entry-level positions.
Previously, H-1B visas were allocated through a random lottery system. Now, visa approvals will be based on salary levels, skill sets, and job relevance, marking a significant shift in U.S. immigration policy for skilled workers. The new rules will be published in the Federal Register on December 29, 2025, and will come into effect for the FY 2027 H-1B registration.
What is H-1B?
The H-1B visa allows U.S. companies to hire specialized foreign professionals in sectors such as technology, healthcare, finance, education, and space when qualified U.S. workers are unavailable. Annually, 65,000 regular H-1B visas are issued, along with 20,000 additional visas reserved for foreign workers with U.S. master’s degrees or higher.
Five Key Changes in H-1B Visa System
- End of the Lottery System
Companies can still sponsor foreign workers, but visa allocation will no longer be random. Instead, the likelihood of approval depends on the salary offered, with higher-paying jobs given priority. - Salary-Based Selection
Registrations will be categorized into four salary levels. Workers in Level 4, earning the highest salaries, will have a better chance of securing a visa, while those in Level 1 (entry-level or low salary) will face significant hurdles. - Mandatory Salary Disclosure by Companies
Employers must now provide salary details, job codes, and work location at the time of H-1B registration. This step aims to prevent underpayment and ensure transparency from the beginning. - USCIS Authority to Revoke Petitions
USCIS has the power to cancel petitions or approved visas if discrepancies are found in salary, job location, or other details after filing. This increases accountability and prevents misuse of the H-1B program. - Impact on Entry-Level and Low-Paid Jobs
The new rules make it extremely difficult for foreign workers in entry-level or lower-paying positions to obtain H-1B visas. Only high-skill, well-compensated roles will be prioritized.
Implementation Timeline
- Rules to be published in the Federal Register: December 29, 2025
- Effective from: February 27, 2026 (for FY 2027 H-1B registration)
- Note: Registrations for the upcoming year will follow the existing system, with the new rules applying in the following fiscal year.
Government Statement
USCIS spokesperson Matthew Tregesser stated:
“The previous H-1B lottery system was exploited by some companies hiring foreign workers at low salaries while paying more to U.S. employees. The new process supports congressional intent, encourages hiring of high-skilled, well-compensated foreign professionals, and strengthens U.S. competitiveness. These changes prevent misuse of the visa program while allowing legitimate employment of skilled foreign workers.”