USCIS Unveils Major H-1B Visa Changes for FY2027: Wage-Based Selection System Introduced
US H-1B Visa FY2027: New Wage-Based Selection System

Major Overhaul in US H-1B Visa Selection Process for Fiscal Year 2027

The United States Citizenship and Immigration Services (USCIS) has announced substantial modifications to the H-1B visa selection process for fiscal year 2027, marking a significant departure from previous procedures. According to details reported by Newsweek, the agency will implement a wage-weighted selection system and establish new registration timelines that will fundamentally alter how skilled foreign workers are selected for employment in the United States.

Registration Timeline and Process Details

The initial registration period for the US H-1B visa cap for fiscal year 2027 will commence at noon Eastern Time on March 4, with the window closing at noon Eastern Time on March 19. USCIS has emphasized that only registrations submitted within this specific timeframe will be considered for selection. Employers seeking to sponsor foreign workers must submit electronic registrations through USCIS online accounts and pay a mandatory $215 fee for each prospective beneficiary.

Following the registration period, USCIS plans to notify employers with selected entries by March 31 through their online accounts. Employers whose registrations are chosen will then become eligible to file complete H-1B cap subject petitions beginning on or after April 1. These petitions must be filed within the statutory period, which typically spans 90 days from notification.

Introduction of Wage-Weighted Selection System

This registration cycle represents a historic shift as USCIS will implement a wage-based selection system for the first time when registrations exceed the annual cap. Under new regulations issued by the Department of Homeland Security (DHS), the agency will abandon the traditional random lottery approach that has characterized previous selection processes.

Instead, greater selection weight will be allocated to positions offering higher wage levels, a strategic change designed to prioritize higher-paid specialty occupations. This fundamental restructuring aims to align visa allocations with economic priorities and ensure that the H-1B program benefits positions commanding premium compensation.

Impact on Selection Probabilities and Employer Strategy

Morgan Bailey, a partner at Mayer Brown and former DHS official, provided insights into how the revised model will impact selection odds. "Based upon DHS's model, only those submissions at Wage Level I have decreased the chances of being selected," Bailey told Newsweek, highlighting that lower-wage submissions will face significantly reduced probabilities under the new system.

Under the previous random selection process, each registration maintained approximately a 30 percent chance of selection regardless of wage level. With the implementation of wage-weighted selection, Level II or higher registrations are projected to maintain or potentially improve upon that probability, while Level I registrations could experience a reduction in selection odds by nearly half.

DHS estimates cited by Newsweek reveal substantial variations in selection probabilities across different wage levels. The chance of selection is expected to increase by 3 percent for Level II roles, surge by 55 percent for Level III positions, and skyrocket by 107 percent for Level IV submissions, creating a tiered system that rewards higher compensation levels.

Visa Caps and Program Fundamentals

The statutory cap for H-1B visas will remain unchanged at 65,000 visas annually, with an additional 20,000 visas reserved specifically for beneficiaries who have earned a master's degree or higher from a US institution of higher education. This structure maintains the existing framework while introducing the wage-based selection mechanism as the primary differentiator among qualified applicants.

The H-1B program enables US employers to hire foreign workers in specialty occupations that typically require at least a bachelor's degree or its equivalent. Demand for these visas has consistently exceeded the annual cap for years, necessitating the electronic registration and selection procedures that USCIS has progressively refined.

Considerations and Potential Variables

The weighted selection model operates under assumptions of standard registration volumes and does not account for several potential disruptions that could influence outcomes. These variables include a $100,000 fee introduced in September for certain H-1B petitions, possible state-level restrictions affecting universities or public agencies, operational delays within the immigration system, or legal challenges to the new selection methodology.

Bailey noted that the current projections reflect normal conditions and could shift significantly if employer participation patterns change. "If some employers opt out, it would result in better odds for those participating," he explained to Newsweek, highlighting how behavioral responses could alter the anticipated selection probabilities.

This comprehensive restructuring of the H-1B selection process represents one of the most significant changes to the program in recent years, potentially reshaping how US employers approach international talent acquisition and how foreign professionals plan their American career trajectories.