The U.S. Department of Homeland Security (DHS) is proposing changes to the H-1B lottery to favor highly skilled, high-wage workers. The changes include a four-tier selection system and a new $100,000 fee for some petitions. Learn how this will affect companies, candidates, and the upcoming 2027 H-1B lottery

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The U.S. Department of Homeland Security (DHS) has unveiled a proposal that could fundamentally change how the H-1B lottery is conducted. Instead of a fully random selection, the government plans to introduce a weighted system that prioritizes candidates whose employers are willing to pay higher wages. The goal is to encourage companies to hire more skilled workers and offer more competitive compensation.

The proposal will be officially published on September 24, 2025, followed by a 30-day public comment period.

If approved, the new system could take effect during the H-1B lottery for the 2027 fiscal year, starting in March 2026.

We will discuss in detail the changes to the H-1B visa selection procedure in this article.

Starting October 16, 2025, the US will introduce a new fee of $1 for all participants in the green card lottery (Diversity Visa). Read here why it was introduced, how it will affect applicants and what you need to consider before participating in DV-2027.

Planning to work or study in the US on an H-1B visa? Take care not only of your documents, but also of your health insurance. The policy will protect you from unforeseen medical expenses and help you adapt faster in a new country.

How the New H-1B Lottery System Would Work

The updated model will rely on the four-tier wage levels defined by the U.S. Department of Labor’s Occupational Employment Wage Statistics (OEWS). A candidate’s chance of being selected will depend on the offered salary level:

- Level 4 (highest) – candidate entered into the lottery 4 times

- Level 3 – 3 times

- Level 2 – 2 times

- Level 1 (entry-level) – 1 time

This means higher-paid workers will have significantly better odds of selection.

During registration, employers will be required to provide the occupational code, job field, and OEWS wage level. If the subsequent petition (Form I-129) contains inconsistent information, USCIS may deny or revoke the application. However, legitimate changes—such as a job relocation that justifies a different wage level—will still be accepted.

Why Is DHS Changing the H-1B Lottery?

According to DHS, the current lottery often favors lower-paid positions, while higher-paid roles (Levels 3 and 4) are less likely to win. 

The proposed changes aim to fix this imbalance and are projected to increase overall wages for H-1B workers by billions of dollars over the coming years. This is expected to strengthen the U.S. economy and enhance its competitiveness in the global talent market.

However, more than 5,000 small businesses that rely heavily on the H-1B program may face challenges due to reduced access to talent.

Read more about the H1B visa in the USA in this article.

Expert Opinions and Background

Xiao Wang, CEO of Boundless (Seattle), sees the proposal as a compromise:

“Employers will be encouraged to offer higher salaries and open senior-level roles. But entry-level workers and international students will still have a chance, since all four wage levels remain in play.”

This is not the first attempt to reform the lottery. A similar rule was first introduced by the Trump administration in November 2020, heavily disadvantaging Level 1 and Level 2 candidates. 

The Biden administration delayed the rule in March 2021, and a federal court blocked it in September of that year. The rule was officially withdrawn in December 2021.

Unlike the earlier attempt, the new proposal preserves opportunities for all wage levels—while still heavily favoring higher-paid categories.

New H-1B Lottery Filing Fee

The reform also comes alongside a separate measure: on September 21, 2025, President Trump signed an executive order imposing a $100,000 fee for filing certain H-1B petitions. This substantial cost could significantly affect employers, particularly small and medium-sized businesses.

What’s Next?

Key steps before the new H-1B lottery system can take effect:

- September 24, 2025 – Official publication in the Federal Register

- 30 days – Public comment period

After review, DHS may finalize the rule. Typically, implementation occurs 30–60 days after publication, although legal challenges are possible. 

If approved without delays, the system will apply to the FY 2027 H-1B lottery.

The U.S. is preparing to overhaul one of its key programs for attracting global talent. The new lottery will give an advantage to highly paid professionals while still leaving opportunities for entry-level applicants. For employers, this means carefully rethinking salary strategies and petition preparation. For candidates, it signals even greater competition for the highly sought-after H-1B visa.

The new rules for the H-1B visa in the US create additional financial and legal barriers for companies and specialists. To avoid errors when submitting documents, minimize the risk of rejection and properly prepare for the new requirements, it is worth contacting professional immigration lawyers. Specialists will help:

- Assess your chances of obtaining an H-1B in 2026;

- Prepare a complete package of documents, taking into account new fees and possible exceptions;

- Support the process in case of inspections or appeals;

- Provide advice to companies planning to employ foreign specialists.

Turning to immigration lawyers can be a decisive factor in ensuring that your investments in the visa process are not in vain.

Reminder! Starting in the fall of 2025, the procedure for obtaining non-immigrant visas to the United States will become significantly more complicated. Applicants are required to apply only in the country of citizenship or legal residence, and personal interviews will become mandatory for almost all categories of visas. Read here where to apply for citizens of countries without regular visa services, who the new rules of mandatory interviews apply to, what practical tips will help avoid visa refusal. 

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