A VC explains why the new H-1B system is rigged and who’s about to get wiped out

A sweeping change to the H-1B visa system could dramatically reshape who gets to work in the U.S.—and who doesn’t. Under a new wage-weighted lottery proposal set to take effect as early as FY2026, foreign workers will no longer have equal odds. Instead, their chances will be tied to salary level—putting startups, recent grads, and international students at a severe disadvantage. Advertisement

The Department of Homeland Security is preparing to publish a proposed rule that replaces the current random H-1B lottery with a wage-tiered system. Every job will be classified into four wage levels—based on location and role—corresponding to percentiles in the Department of Labor’s wage database. Level IV (67th percentile and above) will get 4x the lottery entries, while Level III gets 3x, Level I