1B Visa Rules Changes: Infosys, TCS, other IT stocks set to react on Wednesday

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24/12/2025
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1B Visa Rules Changes: Infosys, TCS, other IT stocks set to react on Wednesday
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DHS Replaces H-1B Random Lottery With Weighted Selection Favoring Higher-Skilled, Higher-Paid Workers

The U.S. Department of Homeland Security (DHS) on Tuesday announced a major overhaul of the H-1B work visa selection process, replacing the long-standing random lottery system with a weighted selection process that gives greater priority to higher-skilled and higher-paid applicants. CBS News+1

Under the new rule, which will take effect February 27, 2026, ahead of the FY 2027 H-1B cap registration season, applicants will no longer have an equal chance in a pure lottery when demand exceeds the annual visa cap. Instead, the system will assign “weight” based on wage level and skill — effectively giving more entries (and thus higher odds of selection) to petitions for workers offered higher salaries. The Times of India

How the Weighted System Works

  1. Registrations tied to higher wage levels (particularly Wage Level IV) will receive multiple entries, increasing their odds of being selected in the cap process.
  2. Lower-paid or entry-level positions will still be eligible, but with fewer weighted entries and lower selection odds compared with higher-wage registrations. internationaloffice.berkeley.edu

This system is designed to discourage abuse of the old lottery (where employers could flood the pool with low-wage registrations) and to better align the H-1B program with its original intent of attracting highly skilled talent. The rule, issued as a final regulation, reflects broader immigration reforms the administration says will help protect U.S. wages and job opportunities. Greenspoon Marder LLP

Reactions and Industry Impact

The change has drawn mixed responses:

  1. Supporters argue the weighted system makes the H-1B programme more merit- and wage-focused and prevents lower-wage hiring from overshadowing skilled talent needs. CBS News
  2. Industry groups, including tech bodies like Nasscom, warn the reform adds uncertainty and complexity to workforce planning — especially for sectors that depend on international talent at varied wage levels. The Economic Times

Critics also note that even with wage priority, broader factors such as proposed high application fees could still affect overall visa accessibility. Hindustan Times

Overall, this represents a significant shift in U.S. immigration policy for skilled workers, reshaping how H-1B visas are allocated and potentially altering the landscape for international professionals seeking employment in the United States. CBS News

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