H-1B Lottery 2026: New Weighted Selection System

With the new H-1B Lottery just around the corner, today we are going to discuss the new weighted system and whether it is still even a lottery. We are also going to discuss the new $100,000 fee that applies in certain cases.

So today, I’m breaking down:

• How the new weighted lottery works
• Who really has better odds now
• When the $100,000 fee applies
• And what this means for small businesses hiring recent graduates.”

How the Old System Worked

Under the prior H-1B system there was a random lottery and two different pools. The first pool was for the master’s cap and included $20,000 visas; the second pool was for the regular cap of applicants with bachelor’s degree and had 65,000 visas. So we had a total of $85,000 visas that could be issued.

If someone had a qualifying U.S. master’s degree, they were entered into the master’s lottery first, and if not selected, they were entered again into the regular lottery. So master’s candidates effectively had two chances, but selection within each pool was random.

Now that changes.

The New Weighted Selection System

The lottery is no longer purely random. Instead, USCIS assigns weighted entries based on the wage level listed on the Labor Condition Application (LCA). Here’s how it works:

Level I – Entry Level (1 entry). These are typically recent graduates working under supervision.

Examples:

• Junior Software Engineer
• Entry-Level Data Analyst
• Research Assistant
• Associate Accountant

Level II – Mid-Level (2 entries). More independent responsibility and experience required.

Examples:

• Software Engineer II
• Mechanical Engineer
• Business Analyst
• Marketing Analyst

Level III – Senior Level (3 entries). Advanced expertise and leadership.

Examples:

• Senior Software Engineer
• Systems Architect
• Senior Financial Analyst
• Project Manager

Level IV – Expert Level (4 entries). Highest wages. Highest weighting.

Examples:

• Principal Engineer
• AI Research Scientist
• Engineering Manager
• Chief Data Scientist

So the equation is now simple: Higher wage = more entries = higher odds of selection. Under this system, a Level IV job with no master’s degree may have better odds than a Level I job with a U.S. master’s degree.

THE $100,000 FEE — What USCIS Just Clarified

Now let’s talk about the headline everyone is reacting to: on September 19, 2025, a Presidential Proclamation was made that requires an additional $100,000 payment for certain H-1B petitions filed on or after September 21, 2025. There was a lot of confusion about who this fee actually applies to.

The $100,000 fee applies to:

• New H-1B petitions filed for beneficiaries outside the United States who do not already have a valid H-1B visa
• Petitions requesting consular processing, port-of-entry notification, or pre-flight inspection
• Change-of-status or extension petitions if USCIS determines the person is ineligible for the requested status

The $100,000 fee does NOT apply to:

• Petitions filed for individuals already inside the U.S.
• Change of status from F-1 to H-1B if USCIS approves the change of status
• Amendments or extensions properly granted
• Previously issued H-1B visas

And that’s important. Because the majority of my clients are F-1 students on OPT being sponsored by small businesses.

The Tradeoff for Small Businesses

Small businesses hiring recent graduates on OPT may avoid the $100,000 fee. But those same candidates are often Level I wage, early career, and lower salary. Which means they now receive only one weighted entry in the lottery. Meanwhile, larger employers offering senior-level salaries may receive three or four entries.

So small businesses are no longer just competing in a random system. They are competing in a system where salary directly affects mathematical odds.

Closing

If you’re a small business hiring an OPT student, or you’re an F-1 graduate hoping to be sponsored this year, you need to understand both your fee exposure and your selection odds before registration opens.

The H-1B system didn’t just get more expensive — it got more strategic.

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