9 January 2026
The U.S. Department of Homeland Security (DHS) has announced one of the most significant changes to the H-1B visa program in decades. Beginning with the FY 2027 cap season, the government will move away from the long-criticized random lottery system and adopt a weighted selection process that prioritizes higher-paid and higher-skilled positions.
This policy shift will have major implications for U.S. employers, foreign professionals, and organizations that rely on the H-1B program to recruit specialized global talent. At VKM Law Group, we are already advising clients to reassess their H-1B strategies in light of these changes.
Under the new system, selection probability will be directly tied to wage level. Early wage planning is no longer optional, it is now the foundation of a successful H-1B strategy.
Why DHS Is Changing the H-1B Selection System
For years, the H-1B lottery allowed employers to submit registrations without regard to wage level, job complexity, or market competitiveness. DHS concluded that this structure incentivized mass filings for lower-paid roles, sometimes undercutting U.S. workers in similar positions.
According to DHS, the new weighted system is designed to:
- Protect wages and working conditions for U.S. workers
- Discourage bulk registrations for low-wage positions
- Encourage employers to offer competitive, market-based salaries
- Strengthen the integrity and purpose of the H-1B program
This reform reflects DHS’s broader policy direction: the H-1B program should be reserved for true specialty occupations compensated at appropriate wage levels.
How the New Weighted H-1B Selection Process Will Work
Instead of random selection, U.S. Citizenship and Immigration Services (USCIS) will now give greater selection priority to H-1B registrations associated with higher wage levels and skill requirements.
Key points employers and foreign workers should understand:
- Higher-paid positions will have a significantly better chance of selection
- Lower-wage positions remain eligible, but with reduced competitiveness
- The annual H-1B cap remains unchanged
- 65,000 under the regular cap
- 20,000 for U.S. advanced degree holders
- The rule takes effect February 27, 2026
- It will apply to the FY 2027 H-1B cap season
This marks one of the most consequential structural changes to the H-1B program in decades.
What This Means for Employers
Employers should begin adjusting workforce planning immediately. Under the new system, offering lower wages may substantially reduce the likelihood of H-1B selection even for otherwise qualified candidates.
Companies may need to:
- Reevaluate offered wage levels
- Review job titles, duties, and SOC code classifications
- Budget more strategically for foreign national hires
- Consider alternative visa options where H-1B selection risk is high
DHS has emphasized that its goal is not to eliminate the H-1B program, but to ensure it is used as intended for highly skilled roles paid at competitive, market-appropriate wages.
At VKM Law Group, we work closely with employers to align immigration strategy with business realities while maintaining full compliance.
Impact on Foreign Professionals and International Students
For foreign professionals, particularly recent graduates, this change underscores the importance of proactive planning.
Foreign nationals should focus on:
- Securing roles aligned with higher wage levels
- Understanding how prevailing wage data impacts H-1B competitiveness
- Developing long-term immigration strategies beyond H-1B alone
Students on F-1 OPT and STEM OPT should begin planning early and work with experienced immigration counsel to remain competitive under the new selection framework.
Broader Enforcement and Policy Direction
This rule aligns with a broader wave of H-1B reforms introduced by the administration, including increased employer obligations, heightened scrutiny, and greater financial accountability.
The message from DHS is clear:
Employers must be prepared to justify both the skill level and the salary offered to foreign workers.
Frequently Asked Questions (FAQ)
When does the new H-1B selection process begin?
The weighted selection system takes effect on February 27, 2026, and will apply to the FY 2027 H-1B registration season.
Will lower-paid H-1B jobs still qualify?
Yes, but they will have a lower probability of selection compared to higher-paid positions.
Does this change the H-1B cap numbers?
No. The annual cap remains 65,000 regular H-1Bs plus 20,000 for U.S. advanced degree holders.
How should employers prepare now?
Employers should review wage levels, job descriptions, and long-term immigration strategies well before the next H-1B registration cycle.
Can VKM Law Group help assess H-1B eligibility under the new rules?
Yes. VKM Law Group advises employers, executives, and foreign professionals on compliant H-1B strategies, wage planning, and alternative visa options based on evolving DHS policies.