The Trump Administration has announced a major overhaul of the H-1B visa program that will replace the long-standing lottery system for granting visas to foreign workers with specialized qualifications, introducing a new weighted system that favors higher-skilled and higher-paid workers.

The new rule, scheduled to take effect on Feb. 26, 2026, will govern tens of thousands of H-1B visas issued annually, starting with the fiscal year 2027 registration period.

Up to 85,000 visas, which enable foreign-born professionals to fill positions in highly specialized fields, are available each year, with 20,000 reserved for individuals holding advanced degrees. Demand typically surpasses this annual limit.

Presently, U.S. companies compete for these limited visas through a completely random lottery each year. Under the new regulation, however, candidates at the highest wage level will receive four entries, those in the subsequent wage bracket will get three entries, and so forth.

This indicates that applicants with higher salaries or more advanced credentials will have a greater chance of obtaining a visa compared to those with lower wages or less specialized expertise. Meanwhile, lower-paid or lower-skilled workers won’t be completely excluded, though their selection probabilities will be reduced.

The modification aims to “better protect the wages, working conditions, and job opportunities for American workers,” according to a Tuesday statement from U.S. Citizenship and Immigration Services.

While proponents of the H-1B visa program contend it draws global talent and drives innovation, critics maintain the system allows employers to recruit foreign workers at wages below what American employees would receive.

“The existing random selection process for H-1B registrations was exploited and abused by U.S. employers primarily seeking to import foreign workers at lower wages than they would pay American workers,” said Matthew Tragesser, a spokesperson for the Department’s U.S. Citizenship and Immigration Services, adding, “With these regulatory changes and future updates, we will continue to modify the H-1B program to assist American businesses while preventing the abuse that was harming American workers.”

However, Dobrina M. Ustun, an immigration attorney, told Newsweek that the rule “risks unintentionally shutting out precisely the employers Congress intended the H-1B program to assist.”

“Prioritizing wage levels as a proxy for skill ignores how innovation, medical research, and early-stage companies actually operate,” she stated in a written statement to the publication, “and it will disproportionately damage institutions that drive long-term economic growth and public benefit rather than short-term profits.”

The rule was published in the Federal Register on Dec. 29 and will take effect 60 days later, in time for fiscal 2027 H-1B registration. Applications submitted earlier will follow the previous lottery system. The rule was finalized remarkably quickly, with the Department of Homeland Security issuing the text just days after submitting a draft version to the White House’s Office of Information and Regulatory Affairs on Friday.

The rule represents the latest action in the Trump Administration’s efforts to substantially transform American immigration policy.

Earlier this year, Trump also signed a proclamation imposing a fee for H-1B applications. The action has faced multiple legal challenges; on Tuesday, a judge rejected a lawsuit filed by the U.S. Chamber of Commerce and the Association of American Universities alleging the fee was unlawful, though the groups may still appeal. A coalition of Democratic states also filed suit over the fee earlier this month.

“As part of the Trump Administration’s commitment to H-1B reform, we will continue to demand more from both employers and foreign nationals to avoid undercutting American workers and to prioritize America,” Tragesser stated.

Trump has voiced support for permitting some skilled immigrants to enter the U.S. to fill roles in key industries and help train American workers, a stance that has created conflict with some party members, including MAGA stalwart Rep. of Georgia.

His Administration has sought to broadly restrict immigration, pursuing an aggressive enforcement strategy and working to narrow legal entry pathways—an effort it intensified in recent weeks after an Afghan national was arrested in connection with the shooting of two National Guard members in Washington, D.C.