Overview of the New DHS Rule
In December 2025, the U.S. Department of Homeland Security (DHS) announced major reforms to the H-1B visa program that will reshape how American employers hire foreign professionals. The new rule, effective February 27, 2026, replaces the long-standing random lottery system with a weighted selection process that prioritizes applicants with higher skills and higher wages. This change will apply beginning with the Fiscal Year 2027 H-1B cap registration season.
According to DHS and U.S. Citizenship and Immigration Services (USCIS), this reform aims to better protect American workers and curb the misuse of the H-1B system by employers who previously submitted multiple low-wage applications to increase their chances in the random draw. By giving preference to higher-paid and highly qualified applicants, the government intends to strengthen the integrity of the visa process and align it more closely with its original intent, which is to bring top international talent to U.S. businesses that need specialized skills.
How the New Weighted Selection Process Works
Under the new system, USCIS will use a tiered or weighted selection process rather than a simple random lottery. Each registration will now carry a different probability of selection based on the offered wage and skill level of the position. Registrations tied to higher salary levels will have a better chance of being chosen, while those offering lower wages will have a smaller chance.
This reform aims to ensure that H-1B visas go to applicants filling roles that genuinely require advanced skills or specialized knowledge. The new system also discourages employers from submitting multiple registrations for lower-paid positions. Although all wage levels remain eligible, those at higher levels are expected to make up a larger share of approved petitions once the rule takes effect.
Key Takeaways for Employers
For employers in both Colorado and Virginia, especially those in tech, engineering, and research, the new rule means that wage and skill level will now play a major role in H-1B success. Employers planning to file for the FY 2027 season should begin preparing by reviewing their current hiring practices and wage structures. Offering competitive wages will now directly improve the likelihood of selection.
Employers must also ensure compliance with the new eligibility requirements. The rule reinforces the need to file genuine, non-duplicative registrations and to meet all labor condition application (LCA) standards. Violations, including attempts to manipulate the selection process, may lead to penalties or disqualification from future filings. For those seeking guidance, the immigration attorneys at Pachuta & Kammerman can help employers evaluate their eligibility, structure their job offers, and prepare compliant filings.
What the Changes Mean for Foreign Workers
For foreign professionals seeking H-1B sponsorship, this change represents both challenges and opportunities. Highly skilled and highly compensated workers, particularly those with advanced degrees or specialized experience, may now have a stronger chance of selection. However, those applying for entry-level or lower-wage positions might face reduced odds of approval.
The new rule also emphasizes the importance of accurate and complete filings. Applicants will need to ensure that their documentation supports the wage level and job classification claimed by their employer. Misrepresentation could lead to denial or future ineligibility. Those considering applying for an H-1B visa should consult with an immigration lawyer early in the process to understand how these new changes affect their specific situation.
Additional Program Changes and Fees
The 2026 rule is part of a larger effort to reform the H-1B visa program. Alongside the weighted selection process, recent executive actions have increased the financial obligations for employers. The Presidential Proclamation referenced in DHS’s announcement requires an additional $100,000 payment per visa as a condition of eligibility. This significant fee increase further discourages companies from using the program to import low-cost labor.
While this new requirement may limit access to the program for smaller employers, it reflects the administration’s stated goal of prioritizing high-value, high-wage employment opportunities for foreign workers. Employers will need to budget carefully and ensure compliance with all updated financial and procedural rules to remain eligible.
Impact on U.S. Competitiveness
The DHS and USCIS assert that the updated H-1B rule will enhance U.S. competitiveness by rewarding companies that hire top global talent while protecting domestic workers. Supporters argue that a merit-based selection process better aligns with congressional intent and ensures that the program fulfills its purpose of filling genuine skill gaps rather than providing a source of low-cost labor.
Critics, however, worry that the weighted system may disadvantage smaller employers, startups, and nonprofits that cannot match the wage levels of large corporations. Some immigration advocates also fear that the changes may make it harder for talented but less-experienced professionals to obtain H-1B status, particularly those beginning their careers in the U.S. workforce. Whether these concerns materialize will depend largely on how USCIS implements the new rules in the first registration season.
Preparing for the 2027 H-1B Registration Season
Because this rule takes effect in February 2026, employers and foreign workers must begin preparing well in advance for the FY 2027 registration period. Employers should review internal job classifications, confirm wage levels under the Department of Labor’s prevailing wage data, and ensure their recruitment and filing practices align with the new priorities.
Foreign nationals should coordinate with their sponsoring employers and consult an immigration attorney to verify eligibility. Those in F-1 OPT status or nearing visa expiration should plan timelines carefully to avoid gaps in authorization. Both employers and employees will benefit from early preparation, accurate filings, and legal guidance tailored to the new framework.
Get Help Understanding the 2026 H-1B Visa Changes
The new DHS rule represents one of the most significant updates to the H-1B visa process in recent years. Whether you are an employer seeking to hire foreign talent or a professional pursuing H-1B sponsorship, understanding these reforms is essential to your success.
At Pachuta & Kammerman, our experienced immigration attorneys in Denver, Colorado and Fairfax, Virginia stay up to date on every change to federal immigration law. We help employers navigate complex visa programs and assist foreign workers in securing legal employment in the United States. If you have questions about how the 2026 H-1B changes will affect your case or company, contact us today to schedule a consultation. We are ready to guide you through the updated process and help you achieve your immigration goals with confidence.
