H-1B Lottery Scrapped: How The New ‘Weighted Selection’ Rule Impacts Indian Techies For FY 2027 | India News
A landmark rule finalized by the Department of Homeland Security (DHS) eliminated the decades-old lottery system for selecting H-1B visas and replaced it with a “weighted selection” system based on higher-wage, more-skilled workers. The rule will come into force from February 27, 2026.
The changes will now apply to the FY 2027 cap subject registration season, which begins in March 2026, and will shift the visa allocation system from “chance” to “value.” Incidentally, this was also true for Indian professionals, who consistently received over 70% of such visas.
New rules:
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“Weighted Selection” System Announced
Under the previous system, the total of 85,000 visas issued each year (20,000 of which were for master’s degrees) were allocated by lottery through a random computer process. In contrast, the new system has a priority allocation system with varying eligibility levels based on the Department of Labor’s wage determinations for the following categories of work:
- Level IV (Highest Level): Candidates are placed in the pool four times, thus doubling their chances.
- Level III: Candidates are given three options to choose from.
- Level II: Applicants will be given two entries.
- Level I (Entry Level): Candidates are only allowed one entry, significantly reducing their chances of acceptance by almost 50%.
“The old lottery system was actually exploited by employers who wanted to import workers at cheaper wages,” U.S. Citizenship and Immigration Services official Matthew Tragesser told Agence France-Presse. he said.
“$100,000 Barrier” for New Applicants
The lottery changes follow another highly contentious Presidential Proclamation, effective September 21, 2025, that calls for a whopping $100,000 fee for all new H-1B petitions.
India IT Impact: For large companies like TCS and Infosys, 5,000 visa applications have become an annual expense of $500 million, up 9,000% from previous years.
Small Business Distress: According to industry analysts, smaller tech companies and start-ups will essentially be priced out of the talent pool in the US and therefore only the “Big Tech” giants will benefit.
The impact was a ‘logistical nightmare’ in India:
Appointment Chaos: Thousands of visa interviews scheduled at consulates in New Delhi, Mumbai and Hyderabad have been postponed, with many wait times extended until the end of 2026.
Professionals in a difficult situation: Indian professionals working in different IT companies in the US are stranded in India due to “visa stamp”, so companies are now issuing travel advisories to avoid leaving the country.
Fallout in ‘India’s Tech Dream’
The combination of fee-based selection criteria, high cost-of-living allowances and intrusive screening is already beginning to change this. Industry association NASSCOM has warned that this could impact the delivery model of the Indian IT industry, which has an estimated turnover of $245 billion.
As achieving the “on-premise” dream becomes an increasingly difficult call, many professionals have now turned their attention to Canada, Germany, and Australia, opting to join US Global Talent Centers directly from Bengaluru and Hyderabad.
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