US Scraps H1B Lottery: What This Means for Indians

For decades, the H-1B visa application process has been defined by anxiety and pure chance. Each March, hundreds of thousands of hopefuls entered a random lottery, where a fresh graduate had the same mathematical probability of selection as a senior architect. That era has officially ended. The Department of Homeland Security (DHS) has confirmed that the US scraps H1B lottery protocols starting with the FY 2027 registration season (March 2026), replacing them with a wage-weighted selection process.

For Indian nationals, who historically secure nearly 70% of all H-1B visas, this is a seismic shift. The new system prioritizes candidates based on salary levels, fundamentally altering the path to American employment.

How the New System Works

Under the new rules, the randomness is replaced by a hierarchy. USCIS will now rank registrations based on the Department of Labor’s four wage levels.

• Level IV and III (Higher Wages): Candidates with salaries falling into the top quartiles for their profession and location will be selected first.

• Level I and II (Entry/Mid-Level Wages): These registrations will only be considered if the cap remains unfilled after selecting higher earners.

The logic is simple: the government wants to ensure the visa program is used for highly specialized talent that commands a premium market rate, rather than entry-level staff.

Impact on Senior Professionals as US Scraps H1B Lottery

For experienced Indian professionals, this is largely good news. Senior software engineers, project managers, and specialized consultants often command salaries at Wage Level III or IV. Previously, these candidates were frequently rejected simply due to bad luck in the random draw. Now, their high earning potential effectively guarantees them a "front of the line" spot. If you are an experienced tech lead in Bangalore being transferred to Silicon Valley on a high salary, your odds of approval just skyrocketed.

The Challenge for Fresh Graduates

The news that the US scraps H1B lottery is far more concerning for students and early-career professionals. Indian students graduating from US universities typically start at Wage Level I. Under the new weighted system, their chances of selection drop precipitously.

Companies may hesitate to sponsor fresh graduates because they cannot justify paying a Level III salary for an entry-level role just to secure a visa. This could force a major rethink for Indian students relying on the OPT (Optional Practical Training) to H-1B transition.

Conclusion

The strategic pivot is clear: the US is prioritizing economic value over volume. As the US scraps H1B lottery mechanisms, the "American Dream" is no longer a game of chance—it is a game of merit and market value. Indian applicants must now focus less on finding any sponsor, and more on building the high-level skills that command the salaries necessary to make the cut.