On September 24, 2025, the Department of Homeland Security (DHS) released a Notice of Proposed Rulemaking (NPRM) that could significantly reshape the way H-1B visas are allocated in future years. The proposed regulation would move away from a purely random lottery system and instead adopt a weighted selection process designed to favor higher-skilled and higher-paid applicants.
The Current Process
Under today's system, U.S. employers seeking to file cap-subject H-1B petitions must first register their prospective employees. USCIS then conducts a random lottery to select registrants until the annual cap is reached—65,000 visas for the general pool, plus 20,000 for applicants with advanced U.S. degrees.
This random selection system has led to recurring issues:
- High demand and oversubscription: H-1B filings have far exceeded available visas every year for more than a decade.
- Entry-level preference: Data shows that many selected petitions have been concentrated at the lowest prevailing wage levels (Levels I and II), leaving fewer opportunities for experienced, highly compensated professionals.
The Proposed Rule: Weighted Selection
DHS now proposes a weighted lottery system. Each registrant would still be part of a random selection, but the number of times a candidate is entered into the lottery would depend on the prevailing wage level assigned to their position:
- Level IV (fully competent / top tier) – 4 entries
- Level III (experienced) – 3 entries
- Level II (qualified) – 2 entries
- Level I (entry-level) – 1 entry
This means applicants with higher wages (relative to their occupation and location) will have better odds of being selected, though lower-wage candidates will still retain some chance.
Why the Change?
DHS argues that this reform better aligns with the original intent of the H-1B program:
- To help U.S. employers address shortages in highly skilled positions.
- To prevent wage suppression and protect U.S. workers.
- To ensure the limited H-1B visas benefit the “best and the brightest” in the global labor market.
Unlike a 2021 rule (later struck down in court) that would have eliminated nearly all chances for entry-level positions, this weighted approach maintains some access across wage levels while prioritizing higher-skilled candidates.
Impact on Employers
Employers will need to:
- Carefully assess prevailing wage levels when preparing H-1B registrations.
- Provide accurate information on the Standard Occupational Classification (SOC) code, wage, and location of employment.
- Understand that wage level selection is binding—any attempt to manipulate or lower wages after selection could lead to denial or revocation.
Impact on Applicants
For foreign nationals, the proposal means:
- Applicants in higher-wage positions will enjoy a greater probability of selection.
- Entry-level workers will face more competition, but still retain some opportunity to secure an H-1B visa.
- Graduates entering the U.S. workforce may find it more important than ever to negotiate competitive salaries or seek employment with firms prepared to pay at higher wage levels.
Next Steps
The proposed rule is open for public comment until October 24, 2025. If finalized, it could take effect as early as FY 2026 (the lottery held in March 2025 for visas starting October 2025).
Saluja Law's Perspective
This shift represents a significant policy change in U.S. immigration law. While it aims to raise program integrity and ensure that the H-1B program benefits the highest-skilled workers, it also creates new challenges for employers hiring recent graduates or entry-level professionals.
At Saluja Law, we will continue to monitor the progress of this proposed rule and advise our clients on:
- Wage level compliance,
- Registration strategies, and
- Long-term workforce planning under the evolving H-1B framework.
If you or your company are preparing for the upcoming H-1B season, reach out to our office to discuss how these changes may impact your filings and how best to position your application under the new system.