On Tuesday, December 23, 2025, the Department of Homeland Security announced amended regulations for the H-1B lottery selection process that prioritize visa allocations for higher-skilled, higher-paid applicants. The new rule replaces the random lottery for selecting visa recipients with a method that gives greater weight to those with higher skills and higher wages.
Key Details of the New System
Under the final rule, US Citizenship and Immigration Services (USCIS) would:
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Implement a weighted lottery system based on the wage level offered to the H-1B beneficiary.
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Assign more entries in the selection pool to higher wage levels:
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Level IV: 4 entries
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Level III: 3 entries
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Level II: 2 entries
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Level I: 1 entry
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Maintain the beneficiary-centric model, ensuring each foreign worker is only counted once, regardless of how many employers submit registrations.
This system applies to the regular cap (65,000 visas) and the advanced degree exemption (20,000 visas).
The rule, as proposed in September, garnered 2,731 public comments. In the unpublished final rule, DHS noted that “following consideration of all public comments received on the NPRM, DHS is issuing this final rule as proposed in the NPRM, without modifications to the regulatory text.” There are no changes from the originally proposed rule.
Key Dates
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The rule was introduced on September 23, 2025, with a 30-day notice-and-comment period ending on October 24, 2025.
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The rule was submitted to the White House Office of Management and Budget on December 19, 2025.
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The final rule was filed December 23, 2025, and will be published on December 29, 2025.
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This final rule is effective February 27, 2026, and will be in place for the FY 2027 H-1B cap registration season.
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The dates for the FY 2027 H-1B cap registration season have not yet been released.
What to Expect
We expect that the final rule will be challenged in the courts, but with urgency to attempt to seek an injunction before the rule takes effect (February 27, 2026).
We also expect that there may be other proposed changes to the H-1B and other employment-based visas. In the statement from US Citizenship and Immigration Services spokesman Matthew Tragesser, “With these regulatory changes and others in the future, we will continue to update the H-1B program to help American businesses without allowing the abuse that was harming American workers.”
Erickson Insights & Analysis
Erickson Immigration Group will continue monitoring developments and sharing updates as more news is available. Please contact your employer or EIG attorney if you have questions about anything we’re reporting above or if you have case-specific questions.