US H-1B visa is changing. The Trump Admisnistration recently announced an overhaul of the H-1B visa program for foreign skilled professionals. The program, which was traditionally a lottery-based system, will be revamped to a wage, skill-based selection process from the next cycle. Here is a quick recap of the H-1B visa new rules.
The article also covers the most common and frequently asked questions (FAQs) regarding the H1B visa new rules, the changes in cap, the rounds for 2026 visa process, the new 100K rule as well as from when the new rules will be applicable.
H-1B Visa New Rules
Trump Administration has introduced new rules for its H-1B visa program – which is the main route for work visa in the USA. The new rules have replaced the random lottery system which was prevalent till now. As per the new rules, candidates will be selected on the weighted score focussed on wage and skill. This essentially means that the higher the wages/ special skills of the candidates, the higher the chances of the getting the visa.
Apart from this, the administration has also suggested imposing a surcharge of $100,000 on the employer for every H-1B visa sponsored by them. These rules will be effective from February 27, 2026, for the FY 2027 cap season. The registrations will begin from March 2026 onwards.
In a nutshell, H-1B Visa Rules for FY 2027
- Replaces the random lottery with wage/ skill-based selection
- A $100,000 fee applicable on certain new H-1B petitions
Employers are required to submit electronic registrations with a weighted score based on salary and skill level as shared by US Department of Labor. The visas would then be allocated based on the weighted scores.
What is the wage/ skill-based selection process for H1B visas?
At present, the H1B visas were granted after a random electronic lottery every year. This rule has now been replaced with a weighted selection system. Under the new wage, skill – based system, registrations will be weighted based on the wage levels and skills of the candidate. These would be as per the US Department of Labour and the prevailing wage tiers.
Essentially, a job with a higher wage will be placed in the higher tier. Similarly, a special skill-based application will receive a higher tier. In effect, these higher paid and more advanced roles get multiple weighted entries. This in turn will increase the chance of their selection as compared to a low wage job.
It is important to note that it does not do away with lower wage jobs, just reduced the probability of a low wage worker getting a H1B visa.
Impact of New H1B rules on Students, Young Professionals
International students are attracted to USA by the prospect of finding a job and settling in America. Over the years, more and more undergraduate students have been choosing USA as their country of choice for their study abroad plans. The new rules may have an impact on them.
As you may know, H1B visa has a cap – total 85000 visas in a year. This includes 65000 regular and 20,000 US Advanced degree cases. While the students who are travelling for post graduate degrees may not be impacted as such, the undergraduate course students may find the competition increasing due to higher wages. Finding a job in the country and thence getting the visa may become tougher.
As for young professionals, the concerns are simple. Most of the companies in USA pick up talents from around the world because of the marked difference in wages. With increased wage requirements for the visas, the companies may not be seeking recruiting young talent at entry level positions.
What is the $100,000 Rule for H-1B? Has it been implemented?
President Trump announced the new policy of a $100,000 surcharge on the issuance of H-1B visas. The rule requires employers to pay a fee of the said amount. This is significantly higher than the present USCIS Fees. The rule comes into effect for FY 2027 cap cycle. Also, this is a one time payment that needs to be paid by the employers and not the visa holders.
The surcharge will be applicable to new H-1B visas filed from outside the USA, i.e. for beneficiaries outside the US who need entry stamping. This is not applicable to the existing visa holders who would be extending their visas or changing the status.
Notably, this rule has drawn strong objections from industry. Many business groups have challenged the policy and even filed litigation. A federal judge, however, has upheld the legality of the implementation of the said rule by the US Government.
What is the cap under the new H1B visa rules?
There is no change in the annual cap for H1B visas. The cap remains the same, which is 65000 for regular and 20000 for candidates with advanced US degrees.