The U.S. Department of Homeland Security announced on Tuesday that it is replacing its long-standing lottery system for H-1B work visas with a new approach that prioritizes skilled, high-wage foreign workers, UNN reports, citing AP.
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The change is the result of a series of actions by the Trump administration aimed at reshaping the visa program, which critics say has become a channel for foreign workers willing to work for lower pay, but which supporters say stimulates innovation, the publication writes.
"The existing random selection process for H-1B registrations has been exploited and abused by U.S. employers primarily seeking to import foreign workers at lower wages than they would pay U.S. workers," said U.S. Citizenship and Immigration Services (USCIS) spokesman Matthew Tragesser.
Earlier this year, U.S. President Donald Trump signed an executive order imposing an annual H-1B visa fee of $100,000 for highly skilled workers, which was challenged in court.
According to Bloomberg, a federal judge on Tuesday ruled that the Trump administration can charge a $100,000 fee for new H-1B visa applications, creating difficulties for American technology companies that rely on hiring skilled foreign workers.
The U.S. President also introduced a $1 million "golden card" visa as a path to U.S. citizenship for wealthy individuals.
A press release announcing the new rule states that it "is consistent with other key changes made by the administration, such as the presidential executive order requiring employers to pay an additional $100,000 per visa as a condition of eligibility."
The new system "will implement a weighted selection process that will increase the likelihood that H-1B visas will be issued to highly skilled and highly paid foreign workers," according to a press release on Tuesday. It will take effect on February 27, 2026, and will apply to the upcoming H-1B registration season.
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Historically, H-1B visas have been issued through a lottery system. This year, Amazon was the largest recipient, receiving over 10,000 approved visas, followed by Tata Consultancy Services, Microsoft, Apple, and Google. California has the highest concentration of H-1B visa holders.
Supporters of the H-1B program say it is an important pathway to employment for healthcare professionals and educators. They say it stimulates innovation and economic growth in the U.S. and allows employers to fill jobs in specialized fields.
Critics argue that visas are often issued for entry-level positions rather than management positions requiring specialized skills. While the program aims to prevent wage suppression or displacement of American workers, critics say companies can pay lower wages by classifying jobs at the lowest skill level, even when hired workers have more experience.
The number of new visas issued annually is capped at 65,000, plus an additional 20,000 for individuals with a master's degree or higher.