The DHS has just finalized one of the most significant changes to the H-1B visa program in decades. Rather than using the traditional random lottery to allocate capped H-1B visas, USCIS will now implement a weighted selection process that prioritizes higher-skilled, higher-paid foreign workers. This rule is scheduled to apply beginning with the FY 2027 H-1B cap season (registrations submitted early 2026).

Here’s what the new rule means, and how it could impact your organization or career planning.

What’s Changing Under the Final Rule

For years, when H-1B cap registrations exceeded the annual limit — typically 65,000 standard slots plus 20,000 for U.S.-advanced-degree holders, USCIS used a random lottery to determine which petitions could be filed. That meant every registration had (roughly) an equal chance of being selected.

Under the final H-1B rule, that system is being replaced with a weighted selection process that gives greater chances to registrations tied to:

  • Higher wages
     
  • More specialized or advanced skill levels
     

These registrations may be entered multiple times into the pool, and therefore, have a higher probability of being selected, compared with lower-wage or lower-skill jobs. This approach is intended to prioritize employers offering competitive salaries and specialized roles.

The final rule will become effective 60 days after publication in the Federal Register and will apply to all H-1B cap registrations submitted on or after that effective date. This means the FY 2027 H-1B cycle (registrations typically submitted in March 2026) will be the first affected.

Why This Change

According to DHS, the weighted selection process is intended to:

  • Better protect American workers’ wages by encouraging higher-paid positions 
  • Incentivize employers to offer competitive wage offers
     
  • Reduce perceived “abuse” of the H-1B program tied to hiring lower-wage workers 
  • Promote higher skill standards in alignment with congressional intent 

According to USCIS this reform is “not a pay-to-play system” but rather a way to align H-1B selection with wage levels that reflect higher skill. Employers offering higher wages may see improved odds of selection under the new system.

What This Means for Employers

  • Wage & Position Strategy Matters More Than Ever:
    Companies that historically relied on the lottery for entry-level or middling wage roles may see reduced odds of selection if their offered wages fall at lower tiers. Meanwhile, employers willing to offer higher wage levels (reflecting specialized expertise) may gain a competitive advantage in the selection process.
     
  • Planning Tip: Review Prevailing Wage Levels:
    Before submitting registrations, employers should review the prevailing wage and consider strategies for optimizing wage levels and job descriptions, while staying compliant with Department of Labor requirements, to improve weighted chances in the selection process.

What This Means for Workers

  • Highly Skilled, High-Wage Roles Get Priority
    Prospective H-1B workers who qualify for jobs at higher wage levels or with specialized skill requirements may enjoy better odds of being selected under the new system. 
  • Entry-Level and Lower-Wage Positions Face Greater Hurdles
    Workers entering the U.S. under lower wage brackets might be less likely to be selected compared with previous lottery systems, making wage negotiation and job structuring more critical than ever.

Bigger Picture

The H-1B visa program remains capped at the same annual limits. The rule does not increase the number of available slots, rather, it changes how selections are made within that cap.

This shift reflects a broader push by DHS and the administration to reshape U.S. immigration policy toward prioritizing perceived economic benefit, wage protection, and alignment with U.S. workforce interests.

What You Should Do Next

If You’re an Employer:

  • Evaluate wage levels and job classifications before submitting H-1B registrations. 
  • Consult immigration counsel to understand wage tier strategies and registration timing. 
  • Start planning early for the FY 2027 cap season under the new selection system. 

If You’re a Prospective H-1B Worker:

  • Understand how wage levels and job requirements affect your odds of selection. 
  • Work with your sponsor/employer to ensure positions are aligned with “weighted selection” criteria. 
  • Prepare all registration documentation carefully and ahead of the filing window. 

Bottom Line

The final H-1B rule is one of the most significant changes to the visa’s cap selection process in years. Transforming the traditional lottery into a wage- and skill-weighted system designed to prioritize higher-paid, higher-skilled workers.

Whether you’re an employer planning visas for 2026/2027 or a professional hoping to work in the U.S., this rule underscores the importance of strategic planning around wage levels, job descriptions, and registration timing.

If you need help navigating this new H-1B landscape, from selecting the right strategy to preparing your case, Garvish Immigration Law Group is here to help. Contact us for guidance tailored to your situation.