Trump administration moves to overhaul how H-1B visas are granted, ending lottery system

The US Department of Homeland Security said Tuesday it was replacing its longstanding lottery system for H-1B work visas with a new approach that prioritises skilled, higher-paid foreign workers.

The change follows a series of actions by the Trump administration aimed at reshaping a visa program that critics say has become a pipeline for overseas workers willing to work for lower pay, but supporters say drives innovation.

“The existing random selection process of H-1B registrations was exploited and abused by US employers who were primarily seeking to import foreign workers at lower wages than they would pay American workers,” said US Citizenship and Immigration Services spokesman Matthew Tragesser.

Earlier this year, President Donald Trump signed a proclamation imposing a USD 100,000 annual H-1B visa fee on highly skilled workers, which is being challenged in court. The president also rolled out a USD 1 million “gold card” visa as a pathway to US citizenship for wealthy individuals.

A press release announcing the new rule says it is “in line with other key changes the administration has made, such as the Presidential Proclamation that requires employers to pay an additional USD 100,000 per visa as a condition of eligibility.”

Historically, H-1B visas have been awarded through a lottery system. This year, Amazon was by far the top recipient, with more than 10,000 visas approved, followed by Tata Consultancy Services, Microsoft, Apple and Google. California has the highest concentration of H-1B workers.

The new system will “implement a weighted selection process that will increase the probability that H-1B visas are allocated to higher-skilled and higher-paid” foreign workers, according to Tuesday's press release.

It will go into effect Feb 27, 2026, and will apply to the upcoming H-1B cap registration season.

Supporters of the H-1B program say it is an important pathway to hiring healthcare workers and educators. They say it drives innovation and economic growth in the US and allows employers to fill jobs in specialised fields.

Critics argue that the visas often go to entry-level positions rather than senior roles requiring specialised skills. While the program is intended to prevent wage suppression or the displacement of US workers, critics say companies can pay lower wages by classifying jobs at the lowest skill levels, even when the workers hired have more experience.

The number of new visas issued annually is capped at 65,000, plus an additional 20,000 for people with a master's degree or higher.