US Ends H-1B Lottery, Shifts to Wage-Based Selection; Indian Tech Workers Face Major Impact

Washington: The United States is set to overhaul its H-1B visa allocation system, ending the decades-old random lottery process and replacing it with a wage- and skill-based selection model—a move expected to significantly affect Indian professionals, who form the largest share of H-1B recipients.

Under the new rule announced by the US Citizenship and Immigration Services (USCIS), H-1B visas will no longer be allotted through a random draw. Instead, applications will be ranked using a weighted selection system that prioritises higher wages and specialised skills.

Matthew Tragesser, spokesperson for USCIS, said the existing lottery system had been misused by some employers to hire foreign workers at lower wages. “The random selection process was exploited by employers primarily seeking to import foreign workers at lower wages than American workers,” he said, according to the Associated Press.

The revised framework, officials say, is designed to protect US workers’ wages and ensure that visas are granted to highly skilled professionals who add maximum value to the American economy.

When Will the New Rule Apply?

The changes will come into effect from February 27, 2026, and will apply to the upcoming H-1B cap registration cycle, according to USCIS.

Why Indians Are Likely to Be Hit Hardest

Indian nationals currently account for more than 70 per cent of H-1B visas issued annually, primarily in the technology, engineering, and services sectors. As a result, any structural change to the allocation system disproportionately affects Indian applicants.

While professionals earning top-tier salaries or possessing niche expertise may still benefit under the new model, mid-career engineers, entry-level professionals, and those sponsored by smaller firms or staffing consultancies could see a sharp decline in selection chances. Reports by Business Standard indicate that wage levels common among such applicants may now fall below the priority threshold.

Part of a Broader Immigration Tightening

The move aligns with a broader immigration policy shift under former US President Donald Trump, which includes:

• A proposed $100,000 annual fee on new H-1B applications, a step critics say will hurt smaller employers and staffing firms.
• Expanded social-media scrutiny and vetting requirements, already causing delays and rescheduling of H-1B and H-4 visa interviews in India.
• Increased emphasis on protecting domestic employment and wages.

According to Times of India, Indian professionals have historically relied on the H-1B route to gain US work experience and build long-term careers. With the lottery system removed, access may now be limited largely to high-paying roles at major multinational firms.

What Lies Ahead

Experts suggest that companies dependent on deploying Indian talent to the US may rethink hiring strategies, expand offshore operations, or shift roles back to India. Meanwhile, Indian professionals and students may increasingly explore alternatives such as Canada, Europe, or emerging opportunities within India’s expanding technology sector.