H-1B fraud crackdown linked to sharp drop in visa registrations

Key Takeaways

• USCIS reported a 25% drop in eligible H-1B registrations for FY2026, with only 343,981 applications submitted.
• Beneficiary-centric lottery and stricter anti-fraud measures reduced duplicate H-1B entries from over 50% to just 2%.
• H-1B registration fees rose from $10 to $215, deterring speculative and fraudulent employer entries in the lottery.

U.S. Citizenship and Immigration Services (USCIS) has announced a striking drop in H-1B registrations for the fiscal year 2026, dropping by about 25% compared to the previous year. In March, only around 343,981 eligible registrations were recorded, down from the 470,342 in the fiscal year 2025. This is the lowest number seen in the past four years. The changes that led to this shift are not only technical; they represent a clear response from U.S. authorities to concerns about fairness, fraud, and abuse in the H-1B visa lottery system. Let’s take a close look at what happened, why it’s important, and how it could shape immigration and business in the United States 🇺🇸 for years to come.

What Is the H-1B Visa and Why Does It Matter?

The H-1B visa allows U.S. employers to hire skilled foreign workers in specialty jobs. These are usually roles that need a college degree or special training, like computer programmers, engineers, scientists, and doctors. Every year, there’s an annual limit (cap) on how many H-1B visas can be given out. Because the demand often far exceeds this cap, USCIS uses a lottery system to pick who gets a chance to apply.

The H-1B program is vital for many high-tech companies and universities who say they need workers with special skills that aren’t always available in the domestic labor pool. However, the lottery system has faced criticism for being vulnerable to manipulation, especially through duplicate entries by various employers for the same worker.

The Drop: Key Numbers and What They Tell Us

USCIS reported that for FY2026, they received about 343,981 eligible H-1B registrations, which is a 25% decrease from the around 470,342 reported in the previous cycle. Compared with the peak numbers of the past few years, this is a notable change.

A simple side-by-side view:
– FY2025: Around 470,342 eligible registrations
– FY2026: Only 343,981 eligible registrations

Official data shows the change year over year is about minus 25%. This pattern has not been seen in several years and points to something bigger happening in the H-1B lottery space.

Why Did H-1B Registrations Fall So Much?

Several significant policy updates and anti-fraud actions are behind this sharp drop. Here’s what USCIS changed:

1. Beneficiary-Centric Lottery System

Previously, companies could each submit a registration for the same person, so one highly skilled worker might have many companies entering them into the lottery. This opened the door for some companies to work together—sometimes even coordinating applications, often for the same candidate—to boost the odds that at least one entry would win. USCIS called out this behavior as unfair and against the spirit of the program.

Now, with the beneficiary-centric system, each worker can only be in the lottery once, no matter how many offers they get. Companies can still submit job offers, but only one entry counts for each person. This single-entry rule has almost wiped out duplicate registrations. According to USCIS, only 2% of all eligible entries had duplicates this year, down from over 50% last cycle.

This step addresses worries that some were gaming the system, making the lottery less fair to others who played by the rules.

2. Heightened Fraud Investigations

USCIS ramped up its fight against fraud after noticing patterns in past application rounds. Some companies, the agency found, had worked together or submitted multiple applications for the same person. This conduct triggered deeper investigations. As a result, many registrations were denied or revoked, and some were sent for possible criminal prosecution.

USCIS believes these fraud probes and the move to a single-entry system have led directly to the fall in H-1B registrations. In their own words, “[the] decreased filing rate… indicate[s] these investigations and [the] beneficiary-centric selection process have been effective integrity measures.”

3. Tighter Registration Requirements

For this year, every registration had to include proper, matching passport or travel document information. Submissions with incorrect details were immediately disqualified. This step helps ensure only real, serious applications get through, stopping cases where fake entries could be put in just to increase someone’s odds.

4. Fee Increase for Registration

The cost to register for the H-1B lottery rose sharply, with fees going from $10 to $215 per registration. For companies filing many speculative or duplicate entries, these higher fees make blanket submissions too expensive. USCIS hoped this would reduce the temptation to submit entries for candidates the employer might not actually hire.

Impact: Has the Crackdown Worked?

All these updates led to a much lower number of H-1B registrations—down by about a quarter from the previous year. The most dramatic change is in duplicate entries. Previously, over half of the eligible registrations involved the same worker being put forward by more than one company. This year, only 2% of entries were duplicates. The reduction in attempted system abuse is clear.

USCIS believes these numbers prove their efforts are working: “We believe…these investigations and [this] beneficiary-centric selection process have been effective integrity measures.” They claim the tighter approach has made the H-1B process more fair and trustworthy while still giving employers access to foreign talent where needed.

Not Just Fraud: Other Factors Affecting H-1B Applications

While the anti-fraud push is a major reason for lower registration numbers, it’s not the only cause. A slowdown in the economy, especially within the technology sector, has also put a dampener on new job offers. Layoffs and lower hiring rates naturally led to fewer employers putting forward entries for foreign workers.

However, even after this drop, demand for H-1B visas still greatly exceeds the annual cap. In other words, despite a shrinking applicant pool, far more people want H-1B visas than are available each year.

How Do These Changes Affect Stakeholders?

This big shift in the H-1B registration process has important consequences for multiple groups:

For Foreign Workers

• Many skilled workers see the H-1B as their main route to work in the United States 🇺🇸.
• The crackdown means fewer will have duplicate entries, making the process more straightforward and preventing individuals from unfairly increasing their odds, but also possibly making it harder to get “picked” in the lottery.

For U.S. Employers

• Employers can still sponsor foreign workers, but the process is now more tightly watched.
• The higher fee makes it costly for companies to submit a long list of speculative registrations.
• Many in the tech and scientific fields, where the demand for talent is highest, may find it harder to rely on sheer volume of registrations. They must be more selective in whom they support.

For Universities and Research Institutions

• These groups often sponsor H-1B visas for researchers and instructors.
• The new rules reduce the noise of duplicate or fake entries, possibly making it easier for genuine candidates to be selected.

For USCIS and Other Government Agencies

• With fewer, but more legitimate entries to process, the agency can use its resources more efficiently.
• The crackdown strengthens the government’s claim that the system is fair and not easily cheated.

Looking at the Numbers: Yearly Comparison

Let’s revisit the official year-over-year update:

With such a steep drop, it’s clear that the changes had a real impact. As reported by VisaVerge.com, the drop is a mix of both policy action and changes in market demand, showing that immigration regulations can have a quick and strong effect on how the H-1B program is used.

Criticisms and Different Views

While USCIS and supporters of the tightening measures see progress, some employers and immigration advocates worry that the stricter system could limit access to global talent and slow growth, especially in fields where U.S. workers are in short supply. Others argue that the higher fees hurt small or startup employers who rely on specialized skills from abroad but lack deep pockets.

Others say the system could still be unfair if the cap is too low for the actual demand. They question whether a lottery is the best solution, or whether there should be more permanent reforms, such as raising the annual cap or making the system more “merit-based,” rewarding workers with rare or critical skills.

Some foreign workers, too, feel squeezed: while they support fair play, their chances of getting selected depend more than ever on a single company’s support and a bit of luck in the lottery.

What’s Next for the H-1B Program?

The changes this year are likely only the beginning. USCIS and other agencies will continue to monitor the impact of these rules and may adjust them as problems or new forms of abuse are found. In the future, we may see more targeted changes or even bigger reforms designed to better match supply and demand or to protect both U.S. and foreign workers more equally.

For those thinking about entering the H-1B lottery in the future, paying close attention to all requirements will be more important than ever. Details like a matching passport number now can make the difference between a valid and a rejected registration.

Employers should also plan ahead, submit only genuine applications, and make sure their job offers are real and serious. Those who break rules could face not just denial but legal trouble.

About Reporting Fraud and Learning More

If you suspect H-1B fraud or want to learn more about how U.S. authorities are responding to abuse in the immigration system, USCIS offers guidance and a channel for reporting suspected cases. This resource helps maintain the fairness and trust needed in any system that brings workers from around the world into the United States 🇺🇸.

Final Thoughts

This year’s 25% drop in H-1B registrations is more than just a statistic—it’s a sign of a program in transition. The new rules clearly address some of the system’s longtime weak points, such as duplicate entries and abuse by coordinated companies. USCIS claims this round of reforms has made the process more trustworthy and straightforward, while still letting U.S. businesses compete for needed skills from abroad.

It remains to be seen if these changes will help or hinder the broader American economy. What’s clear, though, is that the H-1B system is now tougher, fairer, and more focused on real demand than ever before. Both workers and employers will need to adapt to this new reality if they want to succeed in the race for talent and opportunity.

To stay updated and get practical tips about every stage in the H-1B process, stakeholders can check USCIS’s H-1B Electronic Registration Process page. This official source will be important as the system continues to evolve with new rules, forms, and requirements in the years ahead.

Learn Today

H-1B Visa → A nonimmigrant visa allowing U.S. employers to hire foreign workers in specialty occupations needing at least a bachelor’s degree.
Beneficiary-Centric Lottery → A selection process where each foreign worker can enter the H-1B lottery only once, regardless of employer offers.
USCIS → U.S. Citizenship and Immigration Services, the government agency managing lawful immigration to the United States.
Duplicate Registration → Multiple H-1B entries for the same individual by different employers or entities to increase selection chances.
Fraud Investigation → Government efforts to detect, prevent, and penalize dishonest or manipulative practices in the H-1B registration process.

This Article in a Nutshell

A new beneficiary-centric lottery and tighter fraud controls caused H-1B visa registrations to drop 25% for FY2026. With just 343,981 applications, the lowest in four years, the program’s integrity improved. Increased fees and stricter verification aim to make the U.S. immigration system fairer and more transparent for employers and skilled workers.
— By VisaVerge.com

Read more:

• H1B FY 2025 Second Round: 14,534 H1B Registrations Selected and Informed
• USCIS Announces Second H-1B Lottery Selection for FY 2025 Registrations
• Sharp Decline in Duplicate 2025 H-1B Visa Lottery Registrations After Process Revamp
• USCIS Introduces New System for Collaborative H-1B Registrations
• H-1B Lottery Applications Fall Again, Marking a Shift in USCIS Trends