Dept of Homeland Security issues proposed rule to introduce weighted H-1B lottery selection process for cap-subject H-1B petitions
On September 24, 2025 Department of Homeland Security (DHS) published a proposed rule in the Federal Register seeking to change the current H-1B lottery system's random selection process for cap-subject H-1B petitions in order to give priority to H-1B positions offering the highest levels of wages. Under the proposed system, beneficiaries registered for the H-1B cap lottery would be entered based upon the Dept of Labor wage level offered by the H-1B employer. Beneficiaries being offered a Dept of Labor Level 4 wage (the highest wage level) would be entered into the lottery four times, beneficiaries offered Level 3 wages would be entered three times, Level 2 beneficiaries two times, and Level 1 (entry-level) beneficiaries would be entered one time. There is a 30-day public comment period, and legal challenges are anticipated.
Dartmouth as an institution of higher education is exempt from the H-1B cap, so the proposed rule would not affect Dartmouth-sponsored H-1B petitions filed on behalf of eligible faculty and senior research and professional staff. Under the current legal framework, institutions of higher education and affiliated organizations, such as affiliated medical centers, and certain non-profit research organizations, are exempt from the H-1B cap and lottery system. OVIS will continue to monitor this latest government action and provide updates as they become available.