The US announced that it is overhauling its H-1B work visa programme and instead adopting a new system that gives preference to skilled and higher-paid foreign workers.
The Department of Homeland Security announced it is moving away from the traditional lottery system as part of a larger effort to reform the work visa system. The aim is to address concerns that the programme is being used to hire foreign workers at lower wages, a practice that critics say harms American job seekers.
According to U.S. Citizenship and Immigration Services (USCIS), some US employers took advantage of the lottery system to hire foreign workers for less pay than their American counterparts. This shift to a wage-based system aligns with other proposed changes that aim to tie visas more closely to high-wage, high-skill positions, said spokesman Matthew Tragesser.
Under the long-standing lottery system, major tech companies were among the top recipients of H-1B visas. In a recent year, Amazon received the most approved visas, with companies like Tata Consultancy Services, Microsoft, Apple, and Google also hiring many H-1B workers. Geographically, California is home to the largest number of H-1B visa holders.
The new rule introduces a "weighted" selection process. This means that applications for jobs with higher salaries will have a better chance of being selected. This change is scheduled to take effect on February 27, 2026, and will apply to the H-1B registration season for that year.
Supporters of the H-1B programme argue that it is a vital tool for the US economy, and helps businesses fill critical jobs in specialised fields, including healthcare and education, and that these highly skilled workers contribute to innovation and economic growth.
On the other hand, critics claim the programme isn't always used as intended. They argue that many H-1B visas are granted for entry-level jobs, not senior positions needing unique expertise. Critics also say that some companies can legally offer lower wages by misclassifying jobs, which can suppress wages for American workers.
Each year, the US government sets a limit on the number of new H-1B visas. The current annual cap is 65,000, with an additional 20,000 visas reserved for applicants who hold a master's degree or higher from a US university.
The Donald Trump administration recently introduced a new fee of $100,000 per year for H-1B visas, which are designed for highly skilled foreign workers. It is currently being contested in court. The administration also launched a "gold card" visa programme, which provides a pathway to US citizenship for wealthy individuals who are prepared to make a $1 million investment.