Trump’s H1B Lottery Reform 2026: High-Salary, High-Skilled Applicants to Get Priority

New Delhi, September 23, 2025 – Just days after introducing a $100,000 one-time fee for new H-1B petitions, the Trump administration has unveiled another major shift in U.S. immigration policy. According to a Federal Register notice, the Department of Homeland Security (DHS) has proposed reworking the H-1B lottery system to give priority to applications offering higher wages and higher skill levels.

If finalized, the new system could be in place as early as the 2026 H-1B Visa lottery, changing how the 85,000 annual visas are allocated.

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What Will Change in the H-1B Lottery?

Currently, the H-1B selection process is based on a random lottery if applications exceed the annual cap. Under the new proposal:

• Priority will go to high-paying jobs – petitions offering higher salaries would stand a better chance of being picked.
• Highly skilled roles – candidates with niche expertise or advanced qualifications may be favored.
• Lower-wage filings at risk – entry-level jobs and smaller employers may struggle to secure visas.

This reform aims to ensure that the H-1B program is used to recruit the “best of the best” and to prevent wage suppression of U.S. workers.

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Economic Impact of the Reform

DHS estimates that prioritizing high-salary petitions would significantly increase wage levels for foreign workers:

However, the rule is also expected to create economic strain for 5,200 small businesses that currently depend on H-1B workers.

What This Means for Indian Workers and Students?

Indians account for over 70% of all H-1B approvals, especially in STEM fields and through OPT-to-H-1B pathways. The new rule could reshape opportunities for them:

• Tougher for new graduates – early-career professionals and recent master’s/PhD graduates may find it harder to qualify if salaries are not competitive.
• Advantage for senior professionals – highly paid Indian tech experts and specialists stand to benefit.
• Fewer outsourcing roles – Indian IT consulting firms that typically file large numbers of entry-level petitions may see reduced selections.

This is not the first attempt to reform the H-1B lottery. A similar regulation was proposed under Trump’s first term but stalled in court. The Biden administration later withdrew it in 2021. With the new proposal, Trump is reviving a long-standing push to align the program more closely with wage levels and skill priority.

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Timeline and Next Steps

• Public Comment Period: 30 days from September 24, 2025.
• Potential Implementation: In time for the March 2026 lottery registration.
• Legal Challenges Likely: Past efforts to reform the lottery faced court blocks, and this proposal may also face litigation.

If enacted, the rule would favor highly paid Indian professionals but make it harder for students and entry-level workers to transition from OPT or overseas roles to the U.S. workforce. This marks a second phase of the Trump administration’s crackdown on the H-1B program, following the steep $100,000 petition fee.