The U.S. government has introduced major reforms to the H-1B work visa program, bringing an end to the long-standing lottery system.
The changes aim to prioritize higher-paid, highly-skilled workers while introducing new fees and selection rules that could reshape how foreign talent enters the U.S.
These reforms are designed to reward candidates who contribute more directly to the economy and innovation, rather than relying on chance.
Goodbye to the Lottery System
Previously, when applications exceeded the annual cap, visas were granted through a computerized random lottery.
Now, visa selection is based on wages. Jobs that offer higher salaries and better compensation packages will have the best chance of approval.
This change encourages employers to offer competitive wages and ensures that the system focuses on skills and economic value rather than luck.
New $100,000 Petition Fee
Another major change is the introduction of a $100,000 fee per H-1B petition, which is non-refundable.
The fee is intended to discourage speculative filings and reduce system abuse.
However, this could be a heavy burden for small companies and startups, making it more expensive to hire foreign talent.
Larger firms with higher-paying roles are likely to benefit the most.
What Employers and Applicants Should Know
Wages matter more than ever: Higher-paying positions have better chances of approval.
Financial planning is crucial: Companies must factor in the new $100,000 fee.
Hiring strategies will change: Firms that relied on the lottery system need to revise their approach.
Impact on smaller businesses: High fees and wage-based selection may make it harder for smaller companies to compete.
The Bigger Picture
These reforms follow years of backlogs, legal challenges, and policy shifts in the H-1B program.
By prioritizing skills and economic contribution, the U.S. aims to attract higher-quality talent while discouraging low-wage exploitation of the visa system.
For employers and applicants, adapting quickly to these rules will be key to staying competitive in the U.S. job market.
