DHS Changes Process for Awarding H-1B Work Visas to Better Protect American Workers

On December 23, 2025, the Department of Homeland Security (DHS) announced a significant change to the H-1B visa program. Beginning with the FY 2027 H-1B cap season, DHS will replace the random lottery system with a weighted selection process that prioritizes higher-paid and higher-skilled foreign workers.

Key Changes at a Glance

• Random lottery eliminated and replaced with a weighted selection system

• Greater selection probability for higher wages and higher skill levels

• Annual caps remain unchanged: 65,000 regular cap and 20,000 U.S. advanced degree cap

• Final rule effective February 27, 2026

DHS’s Rationale

DHS stated that the prior lottery system was frequently exploited by employers seeking to hire lower-wage foreign workers, undermining U.S. wages and job opportunities. The new rule aims to realign the H-1B program with congressional intent by encouraging employers to sponsor highly skilled, competitively compensated professionals.

Part of Broader H-1B Reform

This change follows other administrative actions to tighten H-1B eligibility, including a Presidential Proclamation that requires employers to pay an additional $100,000 per H-1B visa. DHS emphasized that these reforms are intended to protect American workers while maintaining U.S. economic competitiveness.

What Employers Should Do Now

Employers planning to file H-1B registrations should begin evaluating:

• Wage levels and compensation strategies

• Job classifications and skill requirements

• Long-term workforce planning under the new weighted system

Our Guidance

These changes will materially affect the H-1B strategy and selection outcomes. Our firm advises employers and professionals on navigating the new rules, maximizing selection prospects, and maintaining compliance. Contact us to discuss how this rule may impact your upcoming H-1B filings.