The Department of Homeland Security published its long-awaited “Weighted Selection Process” final rule on December 26, replacing the random H-1B cap lottery with a salary-based system intended to prioritize higher-paid foreign professionals. Beginning with the FY 2027 registration season (March 2026), each cap-subject registration will receive between one and four chances in the selection pool depending on the Department of Labor wage level offered: Level IV gets four entries, Level III three, Level II two and Level I one.
USCIS will collect detailed wage and SOC-code data at the registration stage and warn employers that inconsistencies could trigger RFEs, denials or fraud referrals. DHS argues the change will “better protect American workers” by discouraging low-wage outsourcing, but universities, research institutions and start-ups worry that salaries do not always track skill and may make it harder to recruit post-docs and early-career talent.
For companies and individuals navigating these new complexities, VisaHQ offers a streamlined way to understand documentation requirements, gather supporting evidence and keep track of shifting visa rules. Their online portal for U.S. visas and immigration services (https://www.visahq.com/united-states/) consolidates the latest regulatory updates and provides step-by-step assistance, helping HR teams and foreign professionals prepare accurate filings—whether for H-1B petitions or alternative routes like L-1 and O-1.
![DHS finalizes wage-weighted H-1B selection rule for FY 2027 cap]()
Practically, companies aiming for next year’s cap should start compensation modeling now. A Level III wage in Silicon Valley may require a six-figure increase compared with Level I; conversely, employers in lower-cost metros could face structural odds disadvantages. Immigration counsel also note the interaction with the $100,000 supplemental H-1B fee mandated by Presidential Proclamation 10973, which remains blocked by a federal court but could resurface before the FY 2027 season.
For mobility managers, the rule raises strategic questions: Should firms accelerate green-card sponsorship to avoid the lottery altogether, or shift talent to L-1, O-1 or near-shore locations? DHS projects the rule will transfer roughly $858 million in wages from lower- to higher-paid H-1B holders in FY 2026 alone, rising to $4.3 billion annually by 2030.
Stakeholders have 60 days to petition DHS for clarifications on multi-site wage calculations and remote-work scenarios. No litigation has been filed yet, but business groups are reviewing potential APA challenges similar to those that killed a similar 2021 rule.
USCIS will collect detailed wage and SOC-code data at the registration stage and warn employers that inconsistencies could trigger RFEs, denials or fraud referrals. DHS argues the change will “better protect American workers” by discouraging low-wage outsourcing, but universities, research institutions and start-ups worry that salaries do not always track skill and may make it harder to recruit post-docs and early-career talent.
For companies and individuals navigating these new complexities, VisaHQ offers a streamlined way to understand documentation requirements, gather supporting evidence and keep track of shifting visa rules. Their online portal for U.S. visas and immigration services (https://www.visahq.com/united-states/) consolidates the latest regulatory updates and provides step-by-step assistance, helping HR teams and foreign professionals prepare accurate filings—whether for H-1B petitions or alternative routes like L-1 and O-1.
Practically, companies aiming for next year’s cap should start compensation modeling now. A Level III wage in Silicon Valley may require a six-figure increase compared with Level I; conversely, employers in lower-cost metros could face structural odds disadvantages. Immigration counsel also note the interaction with the $100,000 supplemental H-1B fee mandated by Presidential Proclamation 10973, which remains blocked by a federal court but could resurface before the FY 2027 season.
For mobility managers, the rule raises strategic questions: Should firms accelerate green-card sponsorship to avoid the lottery altogether, or shift talent to L-1, O-1 or near-shore locations? DHS projects the rule will transfer roughly $858 million in wages from lower- to higher-paid H-1B holders in FY 2026 alone, rising to $4.3 billion annually by 2030.
Stakeholders have 60 days to petition DHS for clarifications on multi-site wage calculations and remote-work scenarios. No litigation has been filed yet, but business groups are reviewing potential APA challenges similar to those that killed a similar 2021 rule.
