by Interstride
The U.S. government is changing how H-1B visas are selected. Instead of a purely random lottery, future H-1B selections will prioritize higher wage roles. This change is intended to favor more specialized and higher skilled positions.
According to USCIS and immigration law firms such as Fragomen, the rule will take effect in February 2026. As a result, the April 2026 H-1B cap registration will be the first lottery impacted by this change.
For students and recent graduates planning long-term careers in the U.S., this shift makes early career planning and role selection more important than ever.
What’s Changing With the H-1B Lottery
Today, all eligible H-1B registrations have an equal chance of selection, regardless of salary or role seniority. However, there is currently (and will continue to be) an advantage for those who hold a U.S. earned advanced degree (Masters, Ph.D., JD, etc.).
Under the new rule:
- H-1B registrations will be ranked by wage level
- Higher wage levels will have a higher probability of selection
- Selection will still occur through a lottery, but it will no longer be fully random
This applies only to cap-subject H-1B visas, not cap-exempt employers such as universities, nonprofit research organizations, or affiliated hospitals.
In practice, this means salary level will become a meaningful factor in determining who is selected, alongside existing eligibility rules.
Understanding Wage Levels
Wage levels are selected by employers to reflect the level of skill needed to perform the job. There are four wage levels:
- Level 1: Entry-level roles
- Level 2: Qualified professionals with some experience
- Level 3: Experienced professionals
- Level 4: Highly specialized or senior roles
Wage levels are tied to both job responsibilities and location, not just job title. The same role may fall under different wage levels depending on city, industry, or employer expectations.
What This Means for International Students
The move toward a wage-based selection system will affect students differently depending on their level of education, field of study, and the types of roles they pursue. While the change introduces new challenges, especially for entry-level positions, it also creates clearer advantages for students in specialized and advanced roles.
Positive Impact
For some students, particularly those pursuing advanced or technical careers, this change may actually improve their chances under the H-1B system. By prioritizing higher wage levels, the new rule places more weight on specialization, experience, and advanced education.
- Jobs at Wage Levels 3 and 4 will likely have a higher chance of selection than before
- This may benefit certain graduate students, STEM master’s students, and PhD holders
- Specialized, technical, and experienced roles are favored
Challenging Impact
At the same time, the rule introduces additional hurdles for students seeking entry-level roles. Many early-career positions fall into lower wage categories, which may now face reduced odds of selection under the new system.
- Wage Level 1 (and possibly Level 2) roles will likely have a lower chance of selection
- These roles often align with entry-level and junior positions
- Undergraduate students and recent graduates may be disproportionately affected
This shift may make the traditional pathway from graduation to an entry-level role and then to an H-1B more competitive, particularly for students early in their careers or in fields where starting wages tend to be lower.
Strategic Considerations for Undergraduates
While this change creates challenges, there are still viable paths forward:
- Explore H-1B alternatives, such as:
- O-1 visa for individuals with strong academic or professional distinction
- Nationality specific visas such as the TN (Canadian/Mexican nationals), E-3 (Australian) and H-1B1 (Chile/Singapore)
- Cap-exempt H-1B roles through universities or research institutions
- Consider pursuing a graduate degree to become eligible for a higher wage level position
- Target employers and roles that offer:
- Specialized skill requirements
- Higher responsibility or advanced technical focus
Planning Ahead Matters More Than Ever
This rule reinforces the importance of early career strategy—not just visa timing. Choices around major, skill development, internships, geographic location, and employer type can all influence future wage levels and eligibility.
Students who understand how roles are evaluated and plan accordingly can still build strong pathways to U.S. employment, even in a more competitive H-1B landscape.
Key Takeaway
This rule shifts the H-1B system toward prioritizing skill level and role seniority. While it creates headwinds for entry-level roles, it rewards specialization, advanced education, and experience. Students who plan early and align their career paths accordingly may be better positioned under the new system.
