US Scraps Lottery System For H-1B Visa. Here's What It Means For Indian Professionals

New Delhi: The Donald Trump administration has announced changes to the selection of H-1B work visa in which it seeks to replace the random lottery for selecting visa recipients with a system that favours those with ‘higher-skills’. 

The Department of Homeland Security claimed that the existing random selection process of H-1B registrations was exploited by U.S. employers who were importing foreign workers at lower wages than they would pay American workers. They claimed that this system was flooding the selection pool with lower-skilled foreign workers paid at low wages. This final rule will be effective from February 27, 2026, and will be in place for the FY 2027 H-1B cap registration season. 

Since India is the largest recipient of the H-1B work visa program, over 70% of all visas issued annually, let us understand how the latest move may impact Indian professionals seeking to work in India.

Entry-Level Professionals May Be At Disadvantage

Almost 300,000 Indian professionals work in the US on H-1B visas mostly in technology, engineering and services. Though these workers employed by large US tech firms and earning top-tier salaries may continue to enter into US, entry-level professionals, engineers who are in the middle of their career, and those who are sponsored by small firms or staffing consultancies could see their chances shrink owing to this change. This is because wage levels will become a crucial factor in selection according to the new criteria.

High Fees and Vetting

This scrapping of the lottery system comes amid tightening of the H-1B visa ecosystem. The US has imposed an additional $100,000 fee on new H-1B visa applications, which can make it expensive for Indian IT professionals to seek entry into US. While large multinationals may be in a position to take up the high costs, it will be increasingly difficult for smaller firms.

Social Media Screening

Since December 15, the US State Department has expanded social media screening to all H-1B and dependent H-4 applicants. This has in turn led to widespread rescheduling of visa interviews across India. According to immigration lawyers, the prolonged delays could result in job losses.

Explore Alternatives

The strict visa rules may lead to a change in “onsite” career dream of India’s IT success story. This can also push talent to find alternatives in Canada or Europe. It may also push companies to expand their offshore delivery and its global capability centres in India.

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