What’s Changing With the H-1B Visa Lottery — and How Could It Affect You?

Editor’s Note: This article was originally published on August 13, 2025, and has been fully updated on August 27, 2025, to reflect the beneficiary-centric H-1B lottery system now in effect, and to clarify the status of proposed wage-based reforms. This update ensures you have the most current and accurate information.

The H-1B visa program has seen major changes in the last two years. The biggest shift came in 2024 with the rollout of the beneficiary-centric selection system, which ensures each worker is entered into the lottery only once, no matter how many employers register them. This reform was designed to combat fraud and create a fairer process, and it had an immediate impact: registrations dropped from over 780,000 in 2023 to about 470,000 in 2024. Meanwhile, the Department of Homeland Security is still considering a separate proposal to replace the lottery with a wage-based selection system. While that idea has cleared internal review, it has not yet been finalized or published for public comment. For now, the beneficiary-centric model is the system in effect, and employers and applicants should understand how it works today while keeping an eye on what may be coming next.

The Beneficiary-Centric Rule: Now in Effect

In March 2024, the Department of Homeland Security implemented the beneficiary-centric selection system for the H-1B lottery (covering Fiscal Year 2025 visas).

Under this rule, each individual worker — known as the “beneficiary” — is entered into the lottery only once, regardless of how many employers submit registrations for them. If selected, that worker can then choose which employer’s offer to accept.

This reform was introduced to prevent fraud and abuse, particularly the practice of companies submitting multiple registrations for the same candidate to increase their odds. By eliminating duplicate entries, the system has leveled the playing field and given employers a clearer sense of true demand.

Impact so far: The change reduced registrations dramatically, from about 780,000 in 2023 to around 470,000 in 2024.

The Wage-Based Proposal: Still Under Review

A different reform — a wage-based selection system that would prioritize higher-paid positions — was first proposed under the Trump administration in 2021. That version of the rule was withdrawn after litigation and never took effect.

The Biden administration’s DHS has since revived discussion of a wage-based model. Reports indicate the rule has advanced through internal review and is under consideration at the White House’s Office of Information and Regulatory Affairs (OIRA).

However, this system is not yet final. It has not been published in the Federal Register, no public comment period has opened, and it remains a proposal rather than law. If adopted, the earliest it could apply is the March 2026 H-1B lottery.

What Employers and Applicants Should Know

For now, the beneficiary-centric system is the rule in effect. That means:

• Each worker is entered into the lottery once, even if multiple employers register them.

• Smaller employers and nonprofits have a more equal shot compared to larger companies that previously could file multiple registrations.

• Applicants benefit from a fairer process that removes the advantage of duplicate filings.

At the same time, employers should stay aware that wage-based reform may resurface. If implemented, it could shift selection in favor of higher-paying positions, potentially disadvantaging entry-level workers, startups, and nonprofits.

Frequently Asked Questions

When did the new H-1B rule take effect?

The beneficiary-centric system was first used in March 2024 for the FY 2025 H-1B lottery.

Does the current rule favor higher-paid workers?

No. The current rule simply ensures one entry per worker. However, a wage-based proposal that could favor higher-paid positions is still under review.

Can multiple employers still register the same person?

Yes. But that worker will only be entered into the lottery once. If selected, they can choose which employer to move forward with.

Why did registration numbers drop in 2024?

The beneficiary-centric system eliminated duplicate filings, cutting registrations from over 780,000 to about 470,000.

Is the wage-based rule official?

Not yet. It’s under review but has not been finalized, published, or subjected to public comment.

Bottom Line

The H-1B lottery system has already changed with the beneficiary-centric rule, and employers need to adapt to this model now. While a wage-based system may be on the horizon, it is still under review and not in effect.