The U.S. Department of Homeland Security has published a final rule that will scrap the long-standing random H-1B lottery and replace it with a weighted selection system tied to the wage level offered to each registrant. Beginning with the FY 2027 filing season (registration opens March 2026), an H-1B registration offered at the highest Wage Level 4 will get four entries in the selection pool; Wage Level 3 will get three entries, and so on down to one entry for Level 1 positions.
Officials argue the change will “better protect the wages, working conditions, and job opportunities for American workers” by discouraging employers from submitting multiple low-salary registrations simply to win the lottery. Supporters in the technology and healthcare sectors say the rule rewards bona-fide specialty-occupation jobs and reduces fraud, while critics warn that universities, nonprofits, startups, and rural hospitals—where prevailing wages are often below Level 3—could struggle to compete for talent.
![Trump Administration Replaces H-1B Lottery With Wage-Based Selection]()
Practically, employers must now decide whether to increase salaries to improve selection odds or risk falling to the bottom of the weighted draw. Immigration counsel recommend budgeting earlier for higher wages, re-examining job descriptions, and beginning prevailing-wage determinations in January so Labor Condition Applications (LCAs) can be certified before the March registration window.
Multinational companies should also revisit mobility pipelines: intra-company transfers (L-1) may see heavier use, and near-shore hubs in Canada and Mexico may absorb talent that misses the new H-1B cut. Universities fear a brain-drain of post-doctoral researchers whose stipends rarely reach Wage Level 3; some are lobbying Congress for an academic exemption.
The rule is scheduled to take effect on February 26 2026, 60 days after its Federal Register publication, but industry groups are already weighing legal challenges. Pending litigation over the Administration’s proposed US $100,000 H-1B filing fee could become a template for new suits, creating potential last-minute uncertainty for employers.
Officials argue the change will “better protect the wages, working conditions, and job opportunities for American workers” by discouraging employers from submitting multiple low-salary registrations simply to win the lottery. Supporters in the technology and healthcare sectors say the rule rewards bona-fide specialty-occupation jobs and reduces fraud, while critics warn that universities, nonprofits, startups, and rural hospitals—where prevailing wages are often below Level 3—could struggle to compete for talent.
Practically, employers must now decide whether to increase salaries to improve selection odds or risk falling to the bottom of the weighted draw. Immigration counsel recommend budgeting earlier for higher wages, re-examining job descriptions, and beginning prevailing-wage determinations in January so Labor Condition Applications (LCAs) can be certified before the March registration window.
Multinational companies should also revisit mobility pipelines: intra-company transfers (L-1) may see heavier use, and near-shore hubs in Canada and Mexico may absorb talent that misses the new H-1B cut. Universities fear a brain-drain of post-doctoral researchers whose stipends rarely reach Wage Level 3; some are lobbying Congress for an academic exemption.
The rule is scheduled to take effect on February 26 2026, 60 days after its Federal Register publication, but industry groups are already weighing legal challenges. Pending litigation over the Administration’s proposed US $100,000 H-1B filing fee could become a template for new suits, creating potential last-minute uncertainty for employers.
Source: TIME
