On December 23, 2025, the Department of Homeland Security (DHS) announced that it was amending regulations governing the H-1B visa selection process, moving from a random selection lottery to a weighted system, effective February 27, 2026, ahead of the FY 2027 H-1B cap registration season.
The H-1B visa program allows American employers to temporarily employ foreign workers for positions that require highly specialized knowledge. Annually, the number of H-1B visas issued is limited to 65,000, plus an additional 20,000 for U.S. advanced degree holders.
For a long time, the system used a random selection lottery process. Registrants submit a simple electronic filing for the lottery, and if they are selected, they can submit their full petition. As previously reported, however, on September 24, 2025, the DHS proposed a new rule switching to a weighted selection process. After the notice and comment period, the final rule was published on December 29, 2025, and will take effect on February 27, 2026, officially changing to a weighted selection process.
This new selection process doesn’t eliminate the lottery entirely, but it weighs the registrant entries differently based on wage levels. During registration, each beneficiary will be assigned a wage level (not the same as actual salary) based on Occupational Employment and Wage Statistics and Standard Occupational Classification codes from the U.S. Department of Labor. Simply put, higher wage levels will receive multiple entries into the selection pool while lower wage levels will receive fewer, which increases the odds in favor of higher skilled and higher paid workers.
This change to the selection process is one part of the federal administration’s broader efforts to reform the H-1B program. As previously reported, on September 29, 2025, President Trump issued a proclamation that created a new $100,000 fee for H-1B petitions, which was quickly met with multiple legal challenges.
Most recently, on December 23, 2025, a federal district court denied a request to strike down the rule. The court granted summary judgment in favor of the federal government, concluding that the president had broad authority under the Immigration and Nationality Act to regulate entry into the United States for both immigrants and nonimmigrants and that the proclamation falls within that authority. Two other similar lawsuits have had no rulings issued.
In light of these changes, employers using the H-1B visa program should review the new selection process and generally monitor H-1B developments. Employers should regularly review U.S. Citizenship and Immigration Services resources for the most recent guidance and consult with legal counsel when planning for the upcoming H-1B cap registration season.
James W. Ward, J.D., Employment Law Subject Matter Expert/Legal Writer and Editor, CalChamber
CalChamber members can read more about the H-1B Visa in the HR Library. Not a member? See how CalChamber can help you.
