On March 27th of this year, the results of the H-1B visa lottery began to be released. This annual lottery is a gateway that determines the fate of tens of thousands of foreign professional workers who wish to work in the United States. However, this year was different. With the first-time implementation of the ‘wage-based lottery system' which officially took effect on February 27th, the door opened wider for some and narrower for others, even if they were in the same lottery pool. Higher annual salaries offer an advantage in the lottery, while lower ones put applicants at a disadvantage. The era of random selection, which had been in place for over 15 years, has ended, and a new order has emerged where salary size dictates success or failure. The numbers revealed in this first set of results clearly demonstrate the depth of this change. Simultaneously, with a decrease in H-1B petitions from big tech companies, a federal court lawsuit over new fees of $100,000, and strengthened requirements on the new Form I-129, the environment surrounding the H-1B visa has entered a completely different phase than ever before.
A New Reality Spoken by Numbers
“We started at the same starting line, but it wasn't the same race.”
The U.S. Citizenship and Immigration Services (USCIS) announced on March 31st that it has completed the selection process for the FY2027 H-1B lottery (October 2026 - September 2027). The registration period was from March 4th to March 19th, and enough registrations were received to fill the annual cap of 85,000 spots—65,000 for the regular cap and 20,000 for the advanced degree exemption. The electronic registration fee is $215 per submission.
This was the first time ever that a weighted lottery was applied based on wage levels, and the results were stark. Based on the selection rates by wage level calculated using the Department of Labor's (DOL) Occupational Employment and Wage Statistics (OEWS), Level I (entry-level) accounted for approximately 15%, Level II (intermediate) for approximately 31%, Level III (experienced) for approximately 46%, and Level IV (expert) for approximately 61%. The weighting structure designed by the Department of Homeland Security (DHS)—a system that assigns virtual entries with a multiplier of 1 for Level I, 2 for Level II, 3 for Level III, and 4 for Level IV—worked exactly as intended in reality.
An analysis of their own case registration numbers by an immigration law firm found that the selection rate for Level III and IV registrants was 2.5 to 2.8 times higher than for Level I, aligning with DHS's tiered design and direction. The overall selection rate was 34-42%, which, on the surface, shows little difference from last year's FY 2026 rate of 35.3%. However, this average masks the reality. For Level IV applicants, this lottery was an opportunity where six out of ten were selected, but for Level I applicants, it was a narrow gate where fewer than two out of ten passed. The way the same pie of 85,000 was divided has fundamentally changed.
To truly grasp the weight of this change, one must compare it to the past. For the last 15 years, the H-1B lottery was entirely random. Whether you were a fresh software engineer or a senior researcher with 20 years of experience, earning $60,000 or $200,000 a year, you had the same chance in the lottery. Some saw this as fair, while others viewed it as inefficient. Now, the US government has sided with the latter. In the FY2026 random lottery, the selection rate for all wage levels was uniform at approximately 35%. However, with the weighted lottery implemented for FY2027, Level I dropped to less than half, at about 15%. In contrast, Level IV applicants saw a significant increase, to about 61%. This is the era where experience and salary level directly translate into lottery weight, and the first test results have shown that the designers' intentions have indeed been realized in practice.
Big Tech's Retreat, Nvidia's Counter-Tide
“When the wind changes direction, not all ships will sail to the same destination.”
The $100,000 fee, implemented alongside a weighted lottery system, is shaking up the industry landscape. Under a presidential proclamation effective September 21, 2025, an additional fee of $100,000 is being levied on new H-1B applications from workers abroad. This cost, largely borne by employers, does not apply to extensions or changes of employer for existing H-1B visas, but it has dramatically raised the bar for new international hires.
Change is reflected in numbers. According to Labor Condition Application (LCA) certification data from the Department of Labor, Amazon's H-1B certifications decreased by 34% from 4,647 to 3,057 in the first quarter of FY2026. Meta and Google saw their petition numbers cut in half, while Microsoft, IBM, Salesforce, Apple, and Tesla also experienced declines. Cost is not the only reason. Amazon laid off 16,000 corporate employees in January of this year, following another layoff of 14,000 in October. Meta’s workforce reductions numbered in the hundreds in March, and Microsoft announced plans to cut 15,000 jobs between May and July 2025. The contraction in tech industry employment, coupled with a $100,000 fee, is putting dual pressure on the recruitment of foreign professionals.
However, not all companies moved in the same direction. Nvidia increased 369 to 434 H-1B petitions during the same period, an increase of approximately 18%. The demand for advanced talent required for AI semiconductor design is pushing through even the double headwinds of a $100,000 fee and a weighted lottery. This is a case that shows how the competition for talent is stronger than policy changes in the face of the huge wave of artificial intelligence. Meanwhile, considering that F-1 student visa issuances decreased by 36% compared to the previous year, it cannot be overlooked that the pipeline of foreign talent entering the United States is narrowing. A decrease in international students will soon lead to a shrinkage in the pool of future H-1B applicants.
$100,000 in court
“Before the law, all fees must prove their legitimacy.”
The $100,000 fee immediately faced legal challenges upon implementation. Notably, 20 state attorneys general, led by California Attorney General Rob Bonta, united to file a lawsuit in federal court. The U.S. Chamber of Commerce also filed a separate lawsuit in a Washington D.C. federal court, and Global Nurse Force, a nursing staffing company, is pursuing its own lawsuit in a Northern California federal court. As of now, at least three lawsuits are pending in federal courts.
The plaintiff's core argument is as follows: The Immigration and Nationality Act (INA) stipulates that immigration fees should be based on the actual costs of adjudication. The $100,000 fee, however, constitutes a punitive charge unrelated to actual adjudication costs and bypasses Congress's authority to set fees through a presidential proclamation, thereby violating the Administrative Procedure Act (APA) and the Constitution. Global Nurse Force, in particular, argues that the $100,000 fee obstructs the influx of essential medical personnel at a time when there is a severe shortage of nursing staff across the United States.
Court rulings are divided. On December 23, 2025, the U.S. District Court for the District of Columbia ruled in favor of the legality of the fee, but the plaintiffs immediately appealed. The Court of Appeals scheduled an expedited review, and after exchanging the plaintiffs' appellate brief and the government's response brief in January of this year, oral arguments were held on March 9. Some legal circles suggest the possibility of a preliminary injunction being issued in April or May, temporarily suspending the collection of fees. If an injunction is granted, the refund of fees already paid and the handling of pending petitions will become the next issues. Conversely, if the government wins, the $100,000 fee could become a permanent part of the H-1B system. Either way, the outcome of this lawsuit is expected to be a watershed moment that will shape the landscape of foreign professional workforce recruitment in the United States for years to come.
New Form I-129 and What Korean Applicants Should Know
“If the rules change, the way you prepare must also change.”
Effective April 1st of this year, all H-1B petitions must be submitted using the revised Form I-129 (Petition for a Nonimmigrant Worker) dated February 27th. Petitions filed with the previous form will be automatically rejected. The new form is more than just a format change. It requires employers to attach supporting documentation for the OEWS wage level and to specify the minimum educational requirements for the position, years of experience, major field of study, whether supervision is involved, and any specialized skills required. These are the same criteria the Department of Labor uses when determining the prevailing wage level. This establishes a mechanism for USCIS to cross-check the wage level reported during registration against the details in the petition. Inconsistencies between the form's content and the registered information can lead to a Request for Evidence (RFE) or denial, making thorough preparation essential.
This change requires special attention from Korean IT professionals. A significant number of Korean developers and engineers start their careers in the Level I-II salary range. Under the weighted lottery system, a selection rate of only 15-31%in this bracket means that even with the same abilities, the lottery outcome can be determined solely by salary level. A strategic approach is needed to review job descriptions and salary levels with employers and to structure petitions for positions at Level III or above that match experience and skills.
There are also pathways to avoid the lottery. Petitions through cap-exempt employers, such as universities, non-profit research institutions, and government-related entities, are not included in the 85,000 quota and can be filed without a lottery. Another option is to explore non-immigrant visa categories that do not require a lottery, such as the O-1 (individuals with extraordinary ability) visa or the L-1 (intracompany transferee) visa. Additionally, since it is prohibited for multiple employers to register the same beneficiary concurrently, coordination among employers is necessary before registration. The filing period for selected petitions is from April 1st to June 30th; failure to file within this period will result in disqualification of the selection.
This FY2027 H-1B lottery has confirmed one clear fact: the H-1B visa lottery is no longer a matter of pure luck. The structure, where higher salaries increase the chances of winning, clearly reveals the type of immigrants the United States desires. The policy intention to prioritize highly skilled, high-wage talent is fully integrated into the lottery algorithm.
Big Tech's hiring slowdown and the $100,000 fee are two sides of the same coin in this shift. For companies, it means increased costs associated with hiring foreign talent, while for workers, it brings greater uncertainty in the selection process. However, as NVIDIA's counter-trend demonstrates, the demand for irreplaceable talent cannot be completely blocked by any regulatory hurdles. Even as regulations change, companies' determination to secure talent at the forefront of technological innovation remains unwavering. The issue is that opportunities are now accessible through a much narrower channel than before.
The message from this outcome for Korean professionals is clear. Instead of relying on the luck of the lottery, there is a need for long-term preparation to increase wage negotiation power and elevate career trajectories to Level III or higher. We must also closely monitor the direction of the $100,000 fee lawsuit. If the court issues a preliminary injunction, it could open an opportunity for applicants preparing for H-1B overseas, significantly reducing their financial burden. With the fundamental rules of H-1B having changed, strategies must also change accordingly. Proactive preparation based on accurate information is the only way to seize opportunities in this new order. As the weight of the lottery has changed, it's time for the weight of preparation to change as well. The outcome of this FY2027 is just the beginning. For the FY2028 lottery next year, more applicants will adopt Level-up strategies based on this data, and the competitive landscape will change once again. Only those who can read the changes will seize opportunities.
Disclaimer: This column is for general information purposes only and is not legal advice for your specific case. You should always consult with an attorney who specializes in immigration law for your individual case.
Law Offices of Jin Dong Cho
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