The Department of Homeland Security (“DHS”) has announced a significant change to how H-1B cap registrations will be selected. A final rule published in the Federal Register on December 29, 2025 revises the long-standing random lottery system used for H-1B cap selection, replacing it with wage-based selection. The rule will take effect on February 27, 2026, and will apply to the Fiscal Year 2027 (“FY2027”) H-1B cap registration season. The lottery selections for FY2027 are made on April 1, 2026.