H-1B 2026 Update: Skilled Foreign Workers Could Face Salary-Based Selection

The U.S. government is considering a substantial alteration in the process of H-1B visa allocation, possibly by abandoning the lottery model in favor of a salary based selection process. If this potential rule is finalized, it would be in place for the FY 2027 H-1B cap selection later in March 2026.

Why Is the H-1B Selection Process Changing?

In the past, H-1B visas were granted through a lottery. In 2020, U.S. Citizenship and Immigration Services (USCIS) switched to a selection model focused on the beneficiary, which meant that unique applicants only received one entry, with no regard to how many employers submitted registrations. They did this to reduce fraud and ensure fairness.

The Department of Homeland Security (DHS) and USCIS have published a new proposed rule titled “Weighted Selection Process for Registrants and Petitioners Seeking To File Cap-Subject H-1B Petitions.” This is a proposal that might potentially replace the whole system.

How Will the New System Work?

The new rule will rank application recipients based on salary, experience and skill level rather than random selection. The order of importance in their rules would have priority for those whose wages are under the OES (Occupational Employment Statistics) Wage Level IV, followed by Level III, then Level II and lastly, Level I.

• Level IV: Most experienced and highly compensated workers.
• Level I & II: Most likely involve recent grads and entry-level candidates.

What Does This Mean for Skilled Foreign Workers?

• If enacted, the policy may favor highly skilled and experienced candidates while hindering the ability of recent international graduates and less experienced professionals to qualify under the H-1B cap.
• Around 600,000 H-1B workers were in the U.S. in 2019. The current annual cap is 85,000 workers including 20,000 for U.S. master’s degree holders.
• If enacted, this proposed change is pending approval. If there are no legal challenges to block it, the policy would be enacted in early 2026.

Read Also: US H-1B Visa Registrations Hit Three-Year Low Amid Trump-Era Rules and Rising Immigration Barriers