Why hasn’t the US ended H1B lottery system?

The H-1B visa lottery system is often criticized, but it remains in place due to a mix of legal limits, political challenges, and administrative simplicity. While many agree that a merit-based or demand-driven system would be more efficient, replacing the lottery isn’t easy due to several reasons:

1. Annual Cap Is Set by Law

• The H-1B program is subject to a congressional cap of 85,000 visas per year:

o 65,000 for regular applicants

o 20,000 for U.S. master’s degree holders

• When applications exceed this number (which they do every year), a lottery becomes the only fair way to randomly select who can proceed.

2. Lottery = Legally Neutral

• A random selection process is seen as legally defensible and non-discriminatory.

• It prevents accusations of bias, favoritism, or unfair advantage.

• A purely merit-based system might disproportionately favor large tech firms or specific nationalities, leading to legal or diplomatic issues.

3. Policy Gridlock in Congress

• Changing the H-1B system would require congressional action, and immigration reform has been politically deadlocked for years.

• Some parties want to expand visas for high-skilled workers, while others demand tighter restrictions.

• As a result, no consensus has been reached on a replacement system.

4. Merit-Based Alternatives Are Complex

• While many suggest a points-based or salary-based system (like Canada or Australia), these have their own issues:

o Difficult to measure “merit” fairly across industries

o May disadvantage smaller employers, startups, or niche roles

o More bureaucratic and resource-intensive to manage

5. Abuse and Fraud Prevention

• In recent years, the lottery system has been tightened to prevent abuse:

o Registration system introduced in 2020 to streamline applications

o 2024–25 reforms now restrict duplicate or fake entries by related companies

• The government believes the lottery can be fair if managed properly with anti-fraud rules.

6. Demand Far Exceeds Supply

• Over 700,000+ applications were filed in some recent years for only 85,000 slots.

• Without a lottery, any first-come or scoring-based system would:

o Crash application servers

o Be unfair to smaller or international applicants

o Create massive legal challenges

Summary:

The US hasn’t removed the H-1B lottery system because:

• It’s required under existing laws tied to an annual visa cap

• It ensures fairness and legal neutrality in the face of massive oversubscription

• Replacing it would require congressional action, which is politically difficult

• Merit-based or salary-based alternatives come with their own drawbacks

Until immigration reform happens at the legislative level, the lottery remains the most manageable system—even if imperfect.