DHS Proposes Wage-Based Overhaul of H-1B Lottery 

On September 23, 2025, DHS issued a proposed rule that would fundamentally change how H-1B cap cases are selected. Rather than today’s random lottery, USCIS is proposing a wage-weighted lottery to prioritize higher-paid roles, directly following the White House’s September 19 proclamation adding a $100,000 H-1B filing fee. Under the new system: 

• Level IV jobs would receive four entries, Level III three entries, Level II two entries, and Level I just one. 

• The beneficiary-centric model remains in place – each foreign national can only be selected once, regardless of multiple registrations. 

• The changes would apply to both the 65,000 Regular Cap and the 20,000 Advanced Degree Exemption. 

For in-house teams, the implications are significant. Employers offering Level III and IV wages will gain a clear advantage, while companies relying heavily on entry-level or early-career hires will face much lower selection odds. This shift could have major consequences for campus recruiting, new graduate hiring, and industries where Level I and II roles are standard. It also places greater pressure on wage strategy, job classification, and LCA alignment, with USCIS expected to scrutinize filings more closely. 

At the same time, risks remain. A nearly identical Trump-era wage rule was struck down in 2021, and new legal challenges are expected, particularly around whether wage can legally serve as a proxy for skill. Regional pay variations could also create inequities across industries and geographies. For now, the proposal is subject to a 30-day public comment window before DHS can finalize the rule. 

Action items for in-house teams include: 

• Reviewing wage levels and job classifications for FY 2026 H-1B planning 

• Assessing the impact on entry-level hiring pipelines, especially new grads on F-1 OPT 

• Coordinating with talent acquisition, finance, and leadership on projected costs and competitiveness 

• Considering submitting comments to DHS to help influence the final outcome 

Impact: If implemented, the rule would tilt the H-1B program toward higher-wage, more experienced talent, reshaping recruiting strategies, compliance practices, and long-term workforce planning.