A proposed Department of Homeland Security rule to change how H-1B visas are distributed has passed review by the White House’s Office of Information and Regulatory Affairs, Bloomberg Law reported.
The proposal would replace the current random lottery with a weighted selection process. Under the plan, priority would be given to registrants who meet specific criteria, such as higher wages or advanced education levels.
Newsweek contacted the Department of Homeland Security and the Office of Information and Regulatory Affairs for comment.
The H-1B program provides tens of thousands of specialty occupation workers to U.S. employers annually and is widely used by the technology sector. Moving from a random lottery to a system based on wages or skills could alter hiring incentives for employers and influence which foreign professionals secure U.S. work authorization.
The annual H-1B cap of 85,000 slots affects employers’ ability to hire specialized foreign workers in fields including engineering, computer science, and business specialties. A weighted system could encourage employers to offer higher salaries to improve selection chances or adjust recruitment strategies.
Federal review clearance by the OIRA generally precedes publication of a proposed rule in the Federal Register and a public comment period. The next step will be publication, followed by a 30- to 60-day comment window and a multi-step process before any final rule can take effect.
The weighted-selection idea mirrors a 2021 DHS plan under President Donald Trump that aimed to rank and select petitions by wage tiers, from OES wage level IV down to I. The Trump administration argued this approach would prioritize higher-paid, highly skilled applicants. That plan faced opposition, was withdrawn by the Biden administration, and related regulations were blocked in federal court.
Earlier this year, the Institute for Progress, a nonpartisan think tank, recommended eliminating the H-1B lottery. It claimed the program’s economic value could rise by 88 percent if applicants were evaluated by seniority or salary.
The H-1B visa has faced increased scrutiny since Trump took office, as his supporters have questioned the number issued to foreign nationals, alleging it disadvantages American workers. Microsoft has been under pressure to explain its H-1B requests while implementing major layoffs.
Microsoft applied for 9,491 H-1B visas in the last fiscal year, all of which were approved, and has laid off nearly 16,000 employees this year out of a global workforce of 228,000.
On July 18, 2025, U.S. Citizenship and Immigration Services stated it had received enough petitions to meet the 65,000 regular cap and the 20,000 U.S. advanced degree exemption, also known as the master’s cap, for fiscal year 2026.
In an August 11 article, immigration law firm Fragomen LLP said, “The next step for the proposal is publication in the Federal Register for public feedback.”
Industry analysts expect the administration to release the proposed rule soon, starting the formal comment process.
