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No More H-1B Lottery: Proposed U.S. Law May Prioritize Higher Incomes

The United States Department of Homeland Security (DHS) has submitted a proposed law to the Office of Management and Budget (OMB) that could fundamentally change how H-1B visas are allocated each year.

Instead of the current random lottery system, the proposal recommends a weighted selection process—giving priority to applicants based on income levels, education, or other measurable criteria.

The proposal is still in its early review stages and won’t take effect until it completes the full federal rulemaking process, which may take several months.

What Is the Weighted Selection System?

In plain terms, the proposed system would rank H-1B applicants rather than select them randomly. Applicants with higher incomes or advanced degrees would be placed higher in the queue, significantly impacting who receives an H-1B visa each year.

How the Process Might Work:

  • Applications would be grouped by income brackets
  • Higher-income candidates receive priority
  • Visas would be distributed by descending income tiers until the cap is reached
  • If multiple candidates fall into the same tier, a mini-lottery may be conducted within that group

Why the Proposal Is Being Introduced Now

This is not the first attempt to reform the H-1B selection process. Key milestones include:

  • 2021: The Trump administration passed a wage-based rule, but it was later suspended and rescinded by the Biden administration
  • 2025: The new proposal builds upon earlier efforts and will undergo a detailed review and public comment period before any implementation

What’s Next in the Rulemaking Process?

Here’s how the federal rulemaking timeline typically unfolds:

Stage Duration
OMB Review Up to 3 months
Publication in Federal Register Upon OMB approval
Public Comment Period Typically 2 months
DHS Review of Public Comments No fixed duration
Final Rule Publication Usually 1–2 months later

Until the OMB finishes reviewing the draft and the rule is published in the Federal Register, most details will remain confidential.

Why It Matters for Employers and Applicants

If enacted, this rule could reshape the competitive landscape for U.S. employers hiring foreign talent. Tech firms, startups, and global employers may need to offer higher salaries to improve their candidates’ chances of selection.

On the other hand, small businesses and early-career professionals could face greater challenges obtaining H-1B visas under the new criteria.

How to Prepare

Once the rule is published, both individuals and organizations can submit public comments to help shape the final version of the regulation.

Employers who regularly hire international workers should review their current H-1B strategy now. Wage offerings may soon become a critical success factor.

This proposed shift could be the most significant change to the H-1B system in years—rewarding higher compensation packages and potentially eliminating the role of chance in visa selection.

Until the rule is finalized, the current 2025 H-1B lottery process remains unchanged.