What: On September 24, 2025, the U.S. Citizenship and Immigration Services (USCIS) proposed a rule that would modify the H-1B visa lottery process for the 65,000 regular slots available (and 20,000 slots available for those with a U.S. master’s degree or higher).
Why: This rule changes the lottery from a random selection process to a weighted selection process favoring workers that are paid more.
Under this proposed lottery system, employers would receive the following number of entries (per petition):
- Level IV Pay = 4 lottery entries
- Level III Pay = 3 lottery entries
- Level II Pay = 2 lottery entries
- Level I Pay = 1 lottery entry
Small Business Impact: In FY 2024, 17,069 small entities filed H-1B visas that were subject to this lottery process. This rule could impact small businesses that may not receive their workers if they are paid in Level I, as the probability of being selected is lowered by 42 percent. USCIS estimates that some small entities that filed H-1B petitions at wage Level I would incur costs of approximately $85,006, the lost labor of one worker at this salary level.
Action: Comments are due on or before October 24, 2025.
Advocacy seeks feedback on the number of small businesses and industries affected by this rule, the number of petitions filed per entity, and the compliance costs of this rule. This includes opportunity costs and revenue losses from not being able to obtain these H-1B visa workers. Advocacy also seeks feedback on alternatives to this proposed lottery selection process, such as a separate small business lottery.
| Proposed Rule H-1B Visa Lottery – Entries Per Petition/Beneficiary Based on Pay | Probability of Petition / Beneficiary Being Selected | |||||
| Wage | Experience | Pay Range (based on occupation/location) | Lottery Entries | Random Selection (2021 Rule) | Weighted Selection (2025 Rule) | Percentage Change in Probability |
| Level IV | Fully Competent | 67th Percentile or greater | 4 | 29.59% | 61.16 % | 78% |
| Level III | Experience | Between 50th and 67th Percentiles | 3 | 29.59% | 45.87 % | 45% |
| Level II | Qualified | Between 34th and 50th Percentiles | 2 | 29.59% | 30.58 % | 5% |
| Level I | Entry Level | 34th Percentile or less | 1 | 29.59% | 15.29 % | -42% |
Is your small business or entity being impacted by a proposed rule? If yes, write a comment letter to the proposing agency.