New H-1B Lottery Procedures Explained: What International Students Need to Know

If you’re an international student studying in the U.S., H-1B is probably a term you hear a lot. That’s because for many students, it is this visa that makes working in the U.S. long term after graduation possible. Simply put, the H-1B visa lets a U.S. employer hire you as a professional worker in a specialized job - often in tech, engineering, science, health care, business, and other fields that require a college degree or higher.

Each year, the U.S. government issues a limited number of H-1B visas. There are about 85,000 new H-1B spots available every year. Demand usually far exceeds that number, so the government uses a system to decide who gets a chance to apply for one. For years, that system was a random lottery, meaning the visas were awarded like drawing names from a hat.

What Is the New H-1B Rule?

The biggest change in years has just arrived. It was announced on December 23rd, 2025 that the U.s government has ended the random H-1B lottery and replaced it with a wage-weighted selection process. Instead of every application having the same chance, jobs that offer higher salaries will now have better odds of being chosen: applicants with higher-paying job offers will receive more entries into the selection pool, while those with lower-paying jobs will receive fewer entries and therefore a lower chance of selection.

Officials say this system is meant to prioritize higher-skilled and higher-paid workers and reduce misuse of the program. Others argue it could make things harder for recent graduates and smaller employers who often cannot offer top salaries.

When Does This Take Effect?

The new wage-based selection rule is scheduled to begin in February 2026 and will apply to the H-1B applications submitted for the fiscal year 2027 season. This is the cycle that typically starts with registrations in March 2026.

If you are graduating in 2025 or 2026 and your employer plans to file an H-1B registration for you in March 2026, your chance of being selected will be based on the wage level your job offer falls into rather than pure luck.

What This Means for International Students

For many F-1 students and those working on OPT or STEM OPT, H-1B has been a natural next step after graduation. With the random lottery gone, the process now looks different.

• Jobs with higher salaries have an advantage. If you have a job offer with a competitive salary, your chances of selection are higher.
• Entry-level roles and lower-paying positions may see lower odds. Many new graduates start their careers with modest salaries, and under the new system, those roles may be less competitive in the selection process.
• Smaller companies and startups may be less likely to sponsor. They often cannot offer the same wage levels as large corporations.
• Employers may rethink how they recruit international graduates. This makes it more important than ever to plan ahead and understand your wage level before registration season.
• Applying for H1B from outside the United States will cost employers $100,000 to sponsor the visa. Luckily, this rule will not apply to international students as long as you apply while on maintain a valid visa status in the U.S.

This update does not close the door on working in the U.S., but it does change how students should prepare. Being informed and proactive will matter more than before.

Staying Covered While Navigating Visa Changes

With immigration rules changing, it is natural to feel overwhelmed. Between visa timelines, job searches, and career planning, there is already a lot to manage. That is why health insurance should be one thing you do not have to worry about.

ISO Student Health Insurance is designed specifically for international students and recent graduates navigating life in the U.S. Whether you are studying on an F-1 visa, working on OPT, or transitioning to H-1B, ISO plans provide continuous coverage that meets school requirements and supports you through each stage of your journey.

Periods of transition can come with uncertainty, but having reliable health coverage offers stability and peace of mind. With ISO taking care of your health insurance needs, you can focus on what matters most: preparing for your future, building your career, and navigating the next chapter with confidence.

Disclaimer: This article is intended for general informational purposes only and should not be considered legal or immigration advice. For the most accurate and up-to-date information on H-1B policies and rules, please refer to official announcements from U.S. Citizenship and Immigration Services, including guidance published by the Department of Homeland Security at uscis.gov.

If you're looking for a health insurance plan while on H1B, check out ISO's Voyager plan - starting as low as $79/month for any U.S. visa holder.