The US Department of Homeland Security ( DHS) has advanced a proposed rule that would alter how H-1B visa petitions are selected, introducing a wage-based system instead of the current random lottery. The draft rule (RIN 1615-AD01) was submitted Thursday to the White House Office of Information and Regulatory Affairs for review, according to a report by Bloomberg Law.
The H-1B visa program, widely used by the technology sector, allocates 85,000 new visas annually under a statutory cap. Of these, 20,000 are set aside for individuals with a US master’s degree or higher. Institutions like universities and research centers are exempt from the cap.
Currently, US Citizenship and Immigration Services (USCIS) conducts a random selection from registered applicants. Selected employers then file petitions to sponsor workers. On Friday, USCIS announced that enough petitions were submitted to meet the H-1B quota for fiscal year 2026, confirming that a second lottery round will not be needed.
During the Trump administration, DHS attempted to replace the random process with a system that prioritized petitions offering higher wages. The rule would have ranked applications by wage level across four tiers, promoting higher-paid positions in the selection process.
That proposal was part of the administration’s “Buy American, Hire American” strategy but was withdrawn in 2021 under President Joe Biden. More than 1,000 public comments were received on the earlier proposal, with critics warning that it would drastically cut the number of eligible foreign workers.
Federal courts later blocked other regulatory attempts that aimed to raise minimum wages for H-1B roles and limit qualifying occupations. The new proposal signals DHS’s renewed interest in aligning the visa selection process more closely with wage levels, pending regulatory approval.
The H-1B visa program, widely used by the technology sector, allocates 85,000 new visas annually under a statutory cap. Of these, 20,000 are set aside for individuals with a US master’s degree or higher. Institutions like universities and research centers are exempt from the cap.
Currently, US Citizenship and Immigration Services (USCIS) conducts a random selection from registered applicants. Selected employers then file petitions to sponsor workers. On Friday, USCIS announced that enough petitions were submitted to meet the H-1B quota for fiscal year 2026, confirming that a second lottery round will not be needed.
During the Trump administration, DHS attempted to replace the random process with a system that prioritized petitions offering higher wages. The rule would have ranked applications by wage level across four tiers, promoting higher-paid positions in the selection process.
That proposal was part of the administration’s “Buy American, Hire American” strategy but was withdrawn in 2021 under President Joe Biden. More than 1,000 public comments were received on the earlier proposal, with critics warning that it would drastically cut the number of eligible foreign workers.
Federal courts later blocked other regulatory attempts that aimed to raise minimum wages for H-1B roles and limit qualifying occupations. The new proposal signals DHS’s renewed interest in aligning the visa selection process more closely with wage levels, pending regulatory approval.
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