The H-1B visa has long been the gateway for foreign professionals to work in the United States. It is designed for occupations that require specialized knowledge such as engineers, IT professionals, scientists, and healthcare experts typically requiring at least a bachelor’s degree in a relevant field.
For years, the H-1B process has been a lottery literally. Each year, employers submitted registrations for their candidates, and if the number of applications exceeded the annual cap of 85,000 visas (65,000 general plus 20,000 for U.S. advanced-degree holders), a random lottery determined who could move forward and file a petition. Whether a job offer was $70,000 or $170,000, the odds were the same. This system often left highly skilled worker and employers offering high-paying positions frustrated because selection came down to chance rather than merit. That system is now changing.
From Lottery to Wage-Based Selection
On August 8, 2025, the White House approved a new Department of Homeland Security (DHS) rule that will completely revamp H-1B allocation. Starting with the Fiscal Year 2027 cycle (March 2026), the random lottery will be replaced by a wage-based selection system.
In simple terms, the offered salary will now determine the priority of H-1B applications. USCIS will allocate H-1B slots starting from the highest wage level downward until the annual cap is filled.
This approach is designed to attract and retain the most highly skilled talent, rewarding positions that pay more. At the same time, it introduces challenges for entry-level workers and smaller employers.
How Wage-Based Selection Works
The new system will rely on the Department of Labor’s four wage levels, which depend on job requirements and location:
- Level 4: Senior or highly specialized workers → Highest priority
- Level 3: Experienced professionals → Second priority
- Level 2: Qualified workers with some experience → Third priority
- Level 1: Entry-level workers → Lowest priority
Examples:
- A software engineer in San Francisco earning $160,000 (Level 4) will have a better chance than someone in Austin earning $85,000 (Level 2).
- An AI research scientist at a major technology company may rank higher than an entry-level IT analyst at a smaller firm.
In short, the salary is now the ticket to selection.
Advantages and Disadvantages
Advantages:
- Rewards highly skilled professionals and higher-paying jobs.
- Provides more predictability for employers offering top salaries.
- Aligns with the United States goal of attracting and retaining top talent.
Disadvantages:
- Entry-level professionals, including many recent graduates, may find it more difficult to qualify.
- Smaller companies and nonprofits may struggle to compete with large corporations.
- Certain sectors, such as big technology companies, may dominate, reducing diversity among employers and industries.
What Applicants Can Do to Increase Their Chances
If an individual is an international student, recent graduate, or professional planning to apply, it is time to strategize:
- Select high-wage fields: STEM, artificial intelligence, cloud computing, biotechnology, and fintech roles tend to offer higher salaries.
- Consider location: A salary that qualifies as Level 3 in one city may only qualify as Level 1 in another due to prevailing wage differences.
- Negotiate wisely: Base salary counts toward selection; bonuses or additional benefits will not improve the ranking.
- Develop high-demand skills: Specializing in artificial intelligence, cloud architecture, or other niche skills can place an applicant into higher tiers.
- Choose employers carefully: Larger or well-funded companies may have the flexibility to offer Level 3 or Level 4 wages.
Step-by-Step: What to Expect Now
- Employer Registration (March): Employers submit candidate registrations.
- USCIS Ranking: Registrations are sorted by wage levels, with Level 4 first.
- Cap Filling: Slots are filled from the top tier downward until the 85,000 cap is reached.
- Petition Filing: Selected employers file full H-1B petitions with supporting wage evidence, such as the Labor Condition Application, prevailing wage data, and offer letters.
- USCIS Review: Standard adjudication occurs, and Requests for Evidence may be issued if additional information is required.
- Decision and Approval: Approved applicants may begin employment on October 1 of the fiscal year.
Conclusion
The transition from a lottery to a wage-based H-1B system represents one of the most significant changes in United States immigration policy in years. For some applicants, it provides clarity and rewards skills and experience. For others, particularly entry-level professionals and smaller employers, it introduces new challenges.
Whether planning a career path, negotiating a job offer, or advising an employer, the key takeaway is that preparation is more important than ever. Salary, skills, and choice of employer now directly affect the likelihood of obtaining an H-1B visa. Planning and positioning oneself strategically today will greatly increase the chances of success tomorrow.
