The H-1B program is undergoing major changes, primarily replacing the random lottery with a weighted selection system favoring higher-skilled, higher-paid workers, effective for the FY 2027 season (starting Feb 27, 2026).

According to Department of Homeland Security, this shifting aims to prevent abuse, protect American wages, and encourage employers to sponsor top talent, alongside new screening processes like mandatory social media checks and increased scrutiny, potentially causing application delays.

This comes in addition to the change from earlier, where Trump’s administration declared it will charge $100,000 per application for H–1B visa participation. This week, the federal court upheld this new very high application fee and decided that it was legal to do this.

Key Changes:

Weighted Selection: Instead of purely random selection, registrations will be weighted based on salary levels (higher wages get more entries), increasing their selection odds.
Effective Date: The new system applies to the FY 2027 H-1B cap registration period – starts in February 2026.
New Fees/Proclamations: A prior proclamation added a significant fee (potentially $100,000) for new petitions, though clarifications state it doesn’t affect renewals or already filed petitions.
Enhanced Screening: Stricter checks, including social media reviews, are being implemented for all applicants, causing potential delays and disruptions.

Why the Changes?

Combat Abuse: DHS declared that it aims to stop employers from exploiting the system to import lower-wage workers, which was seen as harming American workers’ wages and jobs.
Serve Congressional Intent: DHS announced that its goal is to better align the program with its purpose of bringing in skilled foreign talent for U.S. businesses.

Impact:

For Employers: Incentivizes higher wages and skills, but will disadvantage smaller businesses that can’t match large tech salaries.
For Applicants: Increased scrutiny and potential processing delays are expected due to new checks and the new system.

In essence, the H-1B lottery is evolving into a more merit-based (wage/skill) allocation system, alongside tightened security and potentially higher costs for employers.

This essentially spells out the end of the H-1B era of small and medium-sized employers who historically relied on foreign labor to save on operating costs and bring foreign talent into the US labor force.

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