The Donald Trump-led US administration has announced a major overhaul of the H-1B work visa programme, ending the decades-old lottery system and replacing it with a merit-based selection model that prioritises higher-paid and more skilled foreign workers, marking a decisive shift under the Trump H-1B visa policy.
Under the new rule, set to take effect from February 27, 2026, H-1B visas will no longer be allocated randomly during the annual cap season. Instead, applicants offering higher wages and specialised skills will be given preference, a move the administration says is aimed at protecting American jobs and wages, reinforcing the Trump H-1B visa policy.
Why the H-1B lottery system was scrapped
For years, the H-1B visa programme relied on a random lottery to distribute 65,000 visas annually, along with an additional 20,000 reserved for US advanced degree holders. According to US Citizenship and Immigration Services (USCIS), this system was increasingly misused by employers seeking cheaper foreign labour.
In a press release, USCIS stated that the amended regulations would prioritise “higher-skilled and higher-paid aliens to better protect the wages, working conditions, and job opportunities for American workers,” a core argument behind the Trump H-1B visa policy.
USCIS spokesperson Matthew Tragesser said the lottery allowed some companies to undercut US wages, an issue the new system aims to correct.
$100,000 H-1B visa fee upheld
Earlier this year, President Trump signed a proclamation imposing an additional $100,000 annual fee on new H-1B visa applications. This decision, which could significantly impact Indian professionals who form a large share of the US tech workforce, was upheld on Tuesday by a US federal judge.
Officials say the fee aligns with the broader Trump H-1B visa policy, discouraging mass hiring of foreign workers at lower wages while encouraging employers to invest in domestic talent.
Gold card visa and broader immigration changes
Alongside changes to the H-1B programme, Trump has introduced a $1 million “gold card” visa, offering wealthy individuals a pathway to US citizenship. The move highlights a clear preference for high-value immigration under the Trump H-1B visa policy.
What this means for Indian professionals
With Indian nationals making up a significant portion of H-1B recipients, the policy shift could reshape hiring trends in the US technology sector, favouring senior, high-paid roles over entry-level positions under the Trump H-1B visa policy.
FAQs
Q: Why did the US end the H-1B visa lottery system?
A: The lottery was scrapped under the Trump H-1B visa policy to prevent misuse and prioritise higher-paid, highly skilled workers.
Q: How does the Trump H-1B visa policy affect Indian workers?
A: Indian professionals may face higher costs and tougher competition, especially for lower-paid tech roles.
Q: When will the new H-1B rules take effect?
A: The new selection system will apply from February 27, 2026, for upcoming cap seasons.
Q: What is the $100,000 H-1B visa fee?
A: It is an additional annual fee on new applications, upheld by a US court, and central to the Trump H-1B visa policy.
