Department of Homeland Security (DHS) issues final rule to replace random H-1B cap lottery with wage-level based weighted system

On December 29, 2025, the U.S. Department of Homeland Security (DHS) published a rule amending the federal regulations governing how U.S. Citizenship and Immigration Services (USCIS) selects foreign workers in the annual H-1B visa lottery. The rule establishes a weighted selection system that prioritizes registrants with higher wage offers. As a result, H-1B registrants with higher-paying job offers will have a substantially greater likelihood of selection than entry-level applicants and others with lower wages. The final rule is set to take effect 60 days from publication, in time for the Fiscal Year 2027 H-1B cap filing season in Spring 2026.  

Note: Institutions of higher education are exempt from the H-1B cap and lottery; accordingly, this rule does not affect Drexel as an employer.  

For more detailed information, please consult Klasko Immigration Partners’ and Fragomen’s websites.