Trump administration ends H-1B visa lottery, shifts to skill-based system

The Trump administration has scrapped the lottery system through which the H-1B visas were allotted, replacing it with a wage and skill-based system.

‘Greater weight to skills’

The decision was announced by the Department of Homeland Security (DHS) on Tuesday (December 23), stating that, unlike the random lottery system, the new selection process for H-1B visas gives “greater weight to those with higher skills.”

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The DHS further stated that the random lottery system was abused by a section of American employers whose only intention was to import foreign workers at lower wages than they would pay to American workers.

“The new rule replaces the random lottery for selecting visa recipients with a process that gives greater weight to those with higher skills,” the DHS stated.

‘Lottery system abused by US employers’

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

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He further stated that the changes in the H-1B visa allocation will better serve the Congress’ intention behind the H-1B programme and boost US’ competitiveness by incentivising American employers to petition for higher-paid, higher-skilled foreign workers.

The DHA stated that the number of H-1B visas issued annually is limited to 65,000, with an additional 20,000 for U.S. advanced degree holders.

‘New rule effective from February 27’

Criticising the random lottery system, the DHS stated that it allowed “unscrupulous employers” to exploit the system" by flooding the selection pool with lower-skilled foreign workers paid at low wages, to the detriment of the American workforce.”

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“To address these concerns, the final rule will implement a weighted selection process that will increase the probability that H-1B visas are allocated to higher-skilled and higher-paid aliens while maintaining the opportunity for employers to secure H-1B workers at all wage levels. This final rule is effective Feb. 27, 2026, and will be in place for the FY 2027 H-1B cap registration season,” stated the DHS.

“As part of the Trump Administration’s commitment to H-1B reform, we will continue to demand more from both employers and aliens so as not to undercut American workers and to put America first,” said Tragesser.