DHS proposes H-1B overhaul: Wage-based lottery instead of random for higher-paid jobs to get upper hand
Under the proposed system, scheduled to be published in the Federal Register on Thursday, H-1B registrations would be entered into the lottery multiple times based on their wage level
- Sep 24, 2025,
- Updated Sep 24, 2025 11:20 AM IST
The Department of Homeland Security (DHS) has proposed a major change to the H-1B visa program: replacing the current random lottery with a system that gives higher-paid jobs better odds of selection. The move follows the introduction of a $100,000 petition fee and the Department of Labor’s “Project Firewall” enforcement efforts, signalling a broader reshaping of the visa landscape.
Under the proposed system, scheduled to be published in the Federal Register on Thursday, H-1B registrations would be entered into the lottery multiple times based on their wage level:
-
Level IV (64th percentile): 4 entries
-
Level III (50th percentile): 3 entries
-
Level II (34th percentile): 2 entries
-
Level I (17th percentile): 1 entry
These wage levels are based on Department of Labor data for typical salaries by occupation and location.
By the numbers, DHS projects that nearly 500,000 eligible registrations will compete for 85,000 available spots (65,000 regular + 20,000 advanced degree). Selection odds are expected to decrease by 48% for Level I wage workers while increasing by 107% for Level IV wage workers.
The current lottery system often favours lower-wage roles. According to DHS, higher-paying positions (Levels III and IV) are underrepresented among approved petitions. The new rule aims to incentivise employers to offer stronger salaries and petition for senior-level roles.
Boundless CEO Xiao Wang commented on the proposal: “Employers are nudged to offer stronger wages and petition for more senior roles. But international students and entry-level workers still have a shot, since total entries are spread across all wage levels.”
However, there are potential drawbacks. Entry-level graduates, even in legitimate specialty roles in STEM fields, could be disadvantaged. Startups and smaller companies may struggle to compete with larger employers that are able to offer top salaries. It remains unclear whether DHS will consider total compensation under the new plan, as current rules only account for base salary, excluding stock options or other incentives.
Impact on workers and employers
-
Tech consulting firms may sponsor fewer mid-tier roles.
-
Recent graduates could see mixed outcomes depending on field and pay.
-
International students might pursue advanced degrees or higher-paying jobs to improve odds.
-
Companies hiring senior talent will have significantly higher chances of securing visas.
Demand for H-1Bs remains extremely high, with nearly 500,000 registrations for only 85,000 spots this year.
What’s next
The proposed rule is still under review. DHS will accept public comments for 30 days following its publication in the Federal Register. If approved, the changes would likely take effect for the fiscal year 2026 H-1B lottery.
This proposed overhaul represents a major shift in how H-1B visas are allocated, emphasising salary and seniority while reshaping employer incentives in the tech and specialised workforce sectors.
The Department of Homeland Security (DHS) has proposed a major change to the H-1B visa program: replacing the current random lottery with a system that gives higher-paid jobs better odds of selection. The move follows the introduction of a $100,000 petition fee and the Department of Labor’s “Project Firewall” enforcement efforts, signalling a broader reshaping of the visa landscape.
Under the proposed system, scheduled to be published in the Federal Register on Thursday, H-1B registrations would be entered into the lottery multiple times based on their wage level:
-
Level IV (64th percentile): 4 entries
-
Level III (50th percentile): 3 entries
-
Level II (34th percentile): 2 entries
-
Level I (17th percentile): 1 entry
These wage levels are based on Department of Labor data for typical salaries by occupation and location.
By the numbers, DHS projects that nearly 500,000 eligible registrations will compete for 85,000 available spots (65,000 regular + 20,000 advanced degree). Selection odds are expected to decrease by 48% for Level I wage workers while increasing by 107% for Level IV wage workers.
The current lottery system often favours lower-wage roles. According to DHS, higher-paying positions (Levels III and IV) are underrepresented among approved petitions. The new rule aims to incentivise employers to offer stronger salaries and petition for senior-level roles.
Boundless CEO Xiao Wang commented on the proposal: “Employers are nudged to offer stronger wages and petition for more senior roles. But international students and entry-level workers still have a shot, since total entries are spread across all wage levels.”
However, there are potential drawbacks. Entry-level graduates, even in legitimate specialty roles in STEM fields, could be disadvantaged. Startups and smaller companies may struggle to compete with larger employers that are able to offer top salaries. It remains unclear whether DHS will consider total compensation under the new plan, as current rules only account for base salary, excluding stock options or other incentives.
Impact on workers and employers
-
Tech consulting firms may sponsor fewer mid-tier roles.
-
Recent graduates could see mixed outcomes depending on field and pay.
-
International students might pursue advanced degrees or higher-paying jobs to improve odds.
-
Companies hiring senior talent will have significantly higher chances of securing visas.
Demand for H-1Bs remains extremely high, with nearly 500,000 registrations for only 85,000 spots this year.
What’s next
The proposed rule is still under review. DHS will accept public comments for 30 days following its publication in the Federal Register. If approved, the changes would likely take effect for the fiscal year 2026 H-1B lottery.
This proposed overhaul represents a major shift in how H-1B visas are allocated, emphasising salary and seniority while reshaping employer incentives in the tech and specialised workforce sectors.