On September 24, 2025, the Department of Homeland Security (DHS) issued a proposed rule that would change the current selection process for selecting H-1B visa petitions subject to the annual numerical limits established by the Immigration and Nationality Act.
Under the proposed rule, the current random lottery system would be replaced with a wage-based selection process that prioritizes the selection of H-1B workers offered higher salaries by sponsoring employers.
The goal is to better align the H-1B program with U.S. labor market needs by increasing the chances of selection for higher-paid, and presumably higher-skilled, foreign workers. This change aims to reduce the potential for abuse in the system, discourage mass low-wage registrations, and ensure that the most economically valuable positions are filled through the H-1B program.
What may change
Currently, the U.S. government selects H-1B visa petitions through a randomized lottery system due to the annual numerical cap on available visas. Employers first submit electronic registrations for each prospective H-1B worker during a designated registration period, typically held in March. Because the demand for H-1B visas consistently exceeds the supply, the U.S. Citizenship and Immigration Services (USCIS) conducts a lottery to determine which petitions can proceed with applying for H-1B visas.
There are two separate caps under the H-1B program: the regular cap of 65,000 visas and an additional 20,000 visas reserved for individuals who hold advanced degrees from U.S. institutions (commonly referred to as the master’s cap). All registered beneficiaries, including those with U.S. advanced degrees, are first entered into the regular cap lottery. After 65,000 are selected, those with U.S. master’s degrees who were not chosen in the initial round are entered into a second lottery for one of the 20,000 advanced degree slots.
This current system does not prioritize applicants based on wage levels, qualifications, or skills. Selection is purely random as long as the minimum eligibility requirements are met.
However, the Department of Homeland Security (DHS) is proposing changes that would shift the selection process to favor higher-paid workers.