• Source:JND

The United States has announced a major overhaul of the H-1B visa programme, scrapping the long-standing random lottery system and replacing it with a weighted selection process that prioritises higher-paid and higher-skilled foreign workers. The new rule, announced by the Department of Homeland Security (DHS) on Tuesday, will take effect from February 27, 2026, and apply to the FY 2027 H-1B cap registration season. 

Under the revised framework, visas will no longer be allocated through a random draw. Instead, greater weight will be given to applicants offered higher wages and possessing advanced skill sets. DHS said the existing lottery system had been exploited by some US employers seeking to hire foreign workers at lower wages than those paid to American employees, undermining domestic job opportunities.

Officials Say Reform Protects US Workers

US Citizenship and Immigration Services (USCIS) spokesman Matthew Tragesser said the changes would better align the H-1B programme with Congress’ original intent. He said the weighted selection would strengthen US competitiveness while preventing practices that harmed American workers. “The new weighted selection will incentivise American employers to petition for higher-paid, higher-skilled foreign workers,” he said.

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Visa Caps And Implementation Timeline

The H-1B programme will continue to be capped at 65,000 visas annually, with an additional 20,000 slots reserved for applicants holding advanced degrees from US institutions. DHS said the final rule would be effective from February 27, 2026, and would be implemented during the FY 2027 registration cycle. 

The move is part of a wider set of reforms aimed at strengthening the integrity of the H-1B programme. These include a presidential proclamation requiring employers to pay an additional USD 100,000 per visa as a condition of eligibility, significantly increasing the cost of hiring foreign talent.

Impact On Indian IT Firms

The decision is expected to significantly impact India’s IT services sector. Companies such as Tata Consultancy Services (TCS), Infosys and Wipro, which have long relied on the H-1B programme, may need to reorient hiring strategies, particularly for mid-level and entry-level roles. Higher visa fees and wage requirements could also reduce traditional outsourcing cost advantages.

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