U.S. Scraps H-1B Lottery, Shifts To Skill- And Salary-Based Visa Selection

The United States has announced a major overhaul of the H-1B visa programme, scrapping the random lottery system in favour of a framework that prioritises higher-skilled and higher-paid foreign workers. The move, effective February 27 next year for the FY2027 cap season, is aimed at protecting American wages and curbing misuse of low-wage filings. For India — the largest source of H-1B professionals — the shift could reduce opportunities for routine roles while improving prospects for specialised, high-salary talent. The change comes alongside a court ruling upholding a proposed $100,000 fee on new H-1B applications, dealing a setback to U.S. tech companies and outsourcing firms. Indian IT majors and consultancies may now need to reassess wage structures and hiring strategies to remain competitive in the U.S. talent market.