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USCIS Final Rule: Weighted H-1B Selection for FY2027 Petitions, Dec 23, 2025

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The U.S. Department of Homeland Security announced a final rule on December 23, 2025, implementing a weighted selection process for H-1B cap-subject petitions, effective February 27, 2026, in time for FY 2027 registrations.


Key Rule Changes


This shifts from random lottery to wage-based weighting using OEWS levels, favoring higher-skilled, higher-paid workers while preserving access at all levels.


Level IV wages get 4 entries (61% chance), Level III gets 3 (45%), Level II gets 2 (31%), and Level I gets 1 (15%).


H-1B lottery selection will be wage-weighted, not purely random from FY2027:


- Level IV = 4 entries

- Level III = 3 entries

- Level II = 2 entries

- Level I = 1 entry


Higher wages = higher odds.


Entry-level roles remain eligible, but with lower probability.


Timeline Impact


Filed for public inspection December 23, 2025, with Federal Register publication around December 29 and 60-day effective date aligning with FY 2027 cap season starting March 2026. Employers should prepare registrations with wage data tied to SOC codes and intended employment areas.


Strategic Advice


For H-1B clients, target Level IV/III offers to boost selection odds, especially amid high demand; multiple registrations per beneficiary remain prohibited. Monitor USCIS for guidance on wage documentation during electronic registration.


Practical Impact


A Level IV registration in an underserved/rural area receives 4 entries in the lottery pool, outranking a Level I (1 entry) or Level II (2 entries) in a high-wage metro city, regardless of the metro's higher absolute salary.


  • Wage Level Examples

    Level I in San Jose-Sunnyvale-Santa Clara, CA, starts at $104,291 annually (17th percentile locally), while Level III in areas like Mississippi or rural Midwest might range $90,000-$110,000. San Francisco medians hit $172,802 overall, pushing even entry-level (Level I) above $130,000 frequently, outpacing Level III in low-cost regions like Eastern Oregon ($125,310 median but adjusted lower for III).


Cross‑occupation comparisons are irrelevant.


A Level IV family medicine physician in New York making $280k and a Level IV programmer analyst at $150k both have identical 4x weighting; the lottery does not care that the physician is paid nearly twice as much.​


For underserved or non‑metro locations, Level III/IV hires (physicians or tech) may gain a real lottery advantage over high‑pay but entry‑level roles in coastal tech hubs, even where the latter pay more in absolute terms.


H‑1B tech roles are often benefit from a fully or partially remote work if LCAs cover the remote location, whereas H‑1B physicians in clinical roles usually must work on‑site at approved medical facilities rather than fully remotely.


Conclusion:


Like every progression, this weighted selection model comes with trade‑offs: it better rewards higher wages, but also risks sidelining early‑career talent and mission‑driven employers that cannot reach Level III/IV.


Large tech and high‑paying employers will see this as a welcome move. However, hospitals and healthcare in underserved areas, startups, nonprofits, academia, and public sector, young professionals and early‑career talent may be impacted negatively.



Final rule to be published on Dec 29, 2025: https://public-inspection.federalregister.gov/2025-23853.pdf




 
 
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