US Ends H-1B Visa Lottery, Moves to Skill- and Salary-Based Selection: Implications for India

Digital Desk

US Ends H-1B Visa Lottery, Moves to Skill- and Salary-Based Selection: Implications for India

The US Department of Homeland Security announced on Tuesday that it is ending the longstanding lottery system for H-1B work visas, shifting to a selection process that prioritizes higher-paid, highly skilled foreign workers. The change, aimed at curbing misuse of the program, is expected to have significant implications for India, which accounts for 71 percent of all H-1B visa recipients.

“The previous random lottery was often misused by employers looking to bring in foreign workers for less than they would pay American employees,” said Matthew Tragesser, spokesperson for US Citizenship and Immigration Services (USCIS). Under the new rules, visas will be allocated through a weighted system that rewards candidates with higher salaries and advanced skills.

The change takes effect from February 27, 2026, coinciding with the next H-1B cap registration season. USCIS emphasized that the revised system is designed to prioritize merit and skill while preventing the exploitation of foreign workers for cost-saving purposes.

The H-1B visa program allows employers to hire foreign professionals with specialized degrees or knowledge to work in the US for up to six years. Historically, the annual cap has been 85,000 visas, but critics argue that the lottery system has allowed companies to hire lower-paid foreign talent over qualified American workers.

The new approach follows heightened scrutiny of both H-1B and dependent H-4 visa applicants. Since December 15, US visa applicants are required to undergo social media and online profile checks as part of the application process. These measures, officials say, aim to prevent visa misuse and illegal immigration.

The US Embassy in India has already postponed scheduled interviews for thousands of applicants, with some appointments now rescheduled from March to May 2026. The delays have prompted technology companies, including Google, to advise employees on H-1B visas to avoid international travel, citing potential processing delays of up to 12 months for visa stamping.

The move comes amid allegations of widespread misuse of the H-1B program. American economist and former Congressman Dave Brat has claimed the system has been exploited for “industrial-level fraud,” particularly by Indian applicants. Brat cited Chennai as an example, asserting that the city received 220,000 visa approvals despite the global cap of 85,000, suggesting discrepancies in reporting and skills verification.

India, as the largest recipient of H-1B visas, faces significant impact. The weighted system could favor highly paid tech professionals in multinational firms, potentially narrowing opportunities for lower-salaried workers who previously relied on the lottery. Analysts predict a shift in hiring practices, with US companies seeking fewer but higher-skilled foreign employees.

The US government’s reforms signal a broader effort to align immigration policy with labor market priorities while addressing domestic concerns over job displacement. For India’s IT sector, the policy may require firms to reassess compensation structures and skill development strategies to remain competitive in the US market.

As the February 2026 registration approaches, all eyes will be on how the new selection system reshapes the flow of Indian professionals to the United States, while testing the effectiveness of merit-based immigration in balancing workforce needs with policy objectives.

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