H-1B Visa Signups Drop Sharply in 2026: Key Reasons Explained

H-1B visa registrations fell 26.9% for Fiscal Year 2026 to 343,981 due to fraud prevention, higher costs, and new selection rules. This decline affects U.S. employers hiring foreign talent and prompts foreign workers to reconsider career strategies amid increased complexity.

Key Takeaways

• H-1B visa registrations dropped 26.9% to 343,981 in Fiscal Year 2026 per USCIS data.
• USCIS increased fraud prevention, raised costs, and implemented beneficiary-centric selection affecting registrations.
• Approximately 118,660–120,141 beneficiaries were selected; average registrations per beneficiary dropped to 1.01.

The H-1B visa program, a key pathway for U.S. employers to hire foreign workers in specialty occupations, has seen a dramatic shift for Fiscal Year 2026. According to the latest data released by U.S. Citizenship and Immigration Services (USCIS) on June 16, 2025, the number of eligible H-1B visa registrations dropped sharply to 343,981. This marks a 26.9% decrease from the 470,342 registrations in Fiscal Year 2025, and an even steeper decline of over 54% compared to Fiscal Year 2024. This sudden drop has raised questions and concerns among employers, foreign workers, and immigration experts about the future of the H-1B program and its impact on the U.S. workforce.

What Happened: The Numbers Behind the Drop

H-1B Visa Signups Drop Sharply in 2026: Key Reasons Explained
H-1B Visa Signups Drop Sharply in 2026: Key Reasons Explained

USCIS reported that for Fiscal Year 2026, only 343,981 eligible H-1B registrations were received. This is a significant decrease from the previous year’s 470,342 registrations. In comparison, Fiscal Year 2024 saw even higher numbers, making the current drop more than half of what it was just two years ago.

Out of the registrations for FY 2026, approximately 118,660 to 120,141 beneficiaries were selected for further processing. This selection is part of the annual cap of 85,000 H-1B visas, which includes 20,000 spots reserved for individuals who have earned a master’s degree or higher from a U.S. institution.

The average number of registrations per beneficiary for FY 2026 was about 1.01, compared to 1.06 in FY 2025. This means that, on average, each person had just over one registration submitted on their behalf, showing a slight decrease in multiple registrations for the same person.

Why Did H-1B Visa Registrations Drop So Much?

Several factors have contributed to the sharp decline in H-1B visa registrations for Fiscal Year 2026. These include:

  • Increased Scrutiny and Fraud Prevention: USCIS has stepped up efforts to combat fraud and misuse in the H-1B program. This includes denying and revoking petitions based on evidence from previous years and reviewing data for attempts to gain unfair advantages.
  • Higher Costs and New Rules: The process of applying for an H-1B visa has become more expensive and complicated. New rules and increased fees may have discouraged some employers and applicants from participating.
  • Uncertainty and Complexity: The growing complexity of the H-1B process, along with uncertainty about policy changes, has led some foreign workers to reconsider their career plans in the United States 🇺🇸.
  • Beneficiary-Centric Selection Process: USCIS continues to use a selection process that focuses on individual beneficiaries rather than employers, making it harder for companies to submit multiple registrations for the same person.

How the H-1B Visa Process Works

To understand the impact of these changes, it’s important to know how the H-1B visa process works. Here’s a simple step-by-step breakdown:

  1. Electronic Registration: Employers or their legal representatives must register each foreign worker (beneficiary) electronically during a set period announced by USCIS.
  2. Lottery Selection: If the number of registrations is higher than the annual cap, USCIS runs a random lottery to select which beneficiaries can move forward.
  3. Petition Filing: Employers whose beneficiaries are selected must file a full H-1B petition, including all required forms and supporting documents, within a specific timeframe. The main form used is Form I-129, Petition for a Nonimmigrant Worker.
  4. USCIS Processing: USCIS reviews the petitions, which may involve requests for more information or interviews. If approved, the beneficiary can start or continue working in the United States 🇺🇸 under H-1B status.

For more details on the H-1B process, the official USCIS H-1B page provides up-to-date information.

Policy Changes and Their Effects

Fraud Investigations and Enforcement

USCIS has made it clear that fighting fraud is a top priority. In recent years, the agency has denied and revoked H-1B petitions when there was evidence of fraud or misuse. This includes cases where employers tried to boost their chances by submitting multiple registrations for the same person or using fake job offers.

USCIS officials have stated that these efforts are meant to protect the integrity of the H-1B program and ensure that visas go to those who truly qualify. However, these stricter rules may have also discouraged some employers and workers from participating, especially those who previously relied on loopholes or questionable practices.

Beneficiary-Centric Selection Process

The move to a beneficiary-centric selection process means that each person can only be selected once, no matter how many employers submit registrations for them. This change aims to stop companies from flooding the system with multiple entries for the same worker, which was a problem in past years.

While this approach helps reduce fraud, it also makes it harder for employers to secure H-1B visas for their top candidates, especially in competitive fields like technology and engineering.

Increased Costs and Complexity

The cost of applying for an H-1B visa has gone up, with higher government filing fees and legal expenses. New rules and documentation requirements have also made the process more complicated. For smaller companies or startups, these costs can be a major barrier.

Some employers may decide it’s not worth the expense or risk, especially if they are unsure whether their petition will be selected or approved. This could explain part of the drop in registrations for Fiscal Year 2026.

Impact on Key Stakeholders

Employers

Many U.S. companies, especially in the technology sector, rely on the H-1B visa program to hire skilled workers from around the world. The sharp drop in registrations means fewer chances to bring in foreign talent, which could make it harder to fill important jobs.

Industry groups have expressed concern that the reduced number of H-1B registrations will hurt their ability to compete in a global market. Some companies may have to delay projects, outsource work, or look for talent in other countries if they can’t hire the people they need in the United States 🇺🇸.

Foreign Workers

For foreign professionals hoping to work in the United States 🇺🇸, the H-1B visa has long been a popular option. However, the increased difficulty and uncertainty of the process may be causing some to reconsider their plans.

Some workers may decide to look for opportunities in other countries, pursue further education, or change their career paths altogether. The complexity and unpredictability of the H-1B process can be discouraging, especially for those who have already invested time and money in their applications.

USCIS

USCIS is focused on maintaining the integrity of the H-1B program. By cracking down on fraud and misuse, the agency aims to ensure that visas go to qualified workers and that the system is fair for everyone.

USCIS officials have said that these changes are necessary to protect the program and prevent abuse. However, they also recognize the need to balance enforcement with the needs of employers and workers.

Historical Context: The H-1B Program’s Evolution

The H-1B visa program has been a cornerstone of U.S. immigration policy for decades. It was created to help U.S. employers fill jobs that require specialized knowledge, such as in science, technology, engineering, and math (STEM) fields.

Over the years, the program has faced challenges, including:

  • High Demand: The number of H-1B registrations has often far exceeded the annual cap, leading to intense competition and the need for a lottery system.
  • Limited Availability: With only 85,000 visas available each year, many qualified workers and employers are left out.
  • Political Scrutiny: The program has been the subject of debate, with some arguing that it takes jobs away from U.S. workers, while others say it is essential for economic growth.
  • Fraud and Misuse: Reports of companies abusing the system have led to calls for reform and stricter enforcement.

Recent efforts by USCIS to address fraud and misuse have added another layer of complexity to an already challenging process.

What’s Next? Future Outlook and Pending Changes

Potential Second Lottery

If not all selected beneficiaries’ petitions are approved or filed, USCIS may hold a second lottery to fill the remaining spots. However, this is not expected until after the current filing period closes. Employers and workers should watch for announcements from USCIS about any additional selection rounds.

Ongoing Policy Reviews

USCIS continues to review and refine the H-1B process. The agency may introduce new rules or make further changes to improve the system’s integrity and effectiveness. Employers and applicants should stay informed about policy updates and be prepared to adapt to new requirements.

Industry and Worker Adaptation

As the H-1B landscape changes, both employers and foreign workers may need to adjust their strategies. Companies might explore alternative visa options, invest in training U.S. workers, or consider remote work arrangements. Foreign professionals may look for other ways to work in the United States 🇺🇸, such as through student visas or employment-based green cards.

Practical Guidance for Employers and Applicants

If you are an employer or foreign worker considering the H-1B process, here are some practical steps to take:

  • Stay Informed: Regularly check the USCIS H-1B page for updates on registration periods, policy changes, and filing instructions.
  • Prepare Early: Gather all required documents and information well before the registration period opens. This includes job descriptions, proof of qualifications, and supporting evidence.
  • Work with Experts: Consider consulting with an immigration attorney or specialist who can help you understand the latest rules and avoid common mistakes.
  • Watch for Announcements: Pay attention to USCIS announcements about lotteries, filing deadlines, and any changes to the process.
  • Explore Alternatives: If the H-1B route is not successful, look into other visa options or pathways to work in the United States 🇺🇸.

Common Questions and Concerns

Why did H-1B registrations drop so much for Fiscal Year 2026?

The main reasons are increased costs, new rules, and USCIS’s efforts to prevent fraud. These changes have made the process more difficult and less attractive for some employers and workers.

What does this mean for U.S. employers?

Employers may find it harder to hire skilled foreign workers, which could affect their ability to fill important jobs and stay competitive.

How does this affect foreign workers?

Foreign professionals may face more uncertainty and may need to consider other career options or countries if they cannot secure an H-1B visa.

Will there be a second lottery?

USCIS may hold a second lottery if there are unused spots after the initial selection, but this will depend on how many petitions are filed and approved.

Multiple Perspectives: What Stakeholders Are Saying

  • Employers: Many are worried about losing access to top global talent and the impact on their business operations.
  • Foreign Workers: Some are frustrated by the complexity and unpredictability of the process, leading them to rethink their plans.
  • USCIS: The agency is focused on protecting the program from fraud and ensuring that visas go to qualified workers.

As reported by VisaVerge.com, the combination of stricter enforcement, higher costs, and new selection methods has changed the landscape for H-1B visas, making it more challenging for both employers and foreign workers.

Where to Find More Information

For the most accurate and up-to-date information on the H-1B visa program, including registration instructions and policy updates, visit the official USCIS H-1B Specialty Occupations page.

Employers and applicants can also find helpful resources and legal guidance from immigration attorneys and consulting services.

Key Takeaways and Next Steps

  • H-1B visa registrations for Fiscal Year 2026 dropped by nearly 27% from the previous year, and over 54% from two years ago.
  • USCIS’s efforts to prevent fraud, along with higher costs and new rules, are the main reasons for the decline.
  • Employers may face more challenges in hiring foreign talent, while foreign workers may need to consider other options.
  • Stay informed, prepare early, and seek expert advice to improve your chances in the H-1B process.

The H-1B program remains a vital part of the U.S. immigration system, but recent changes have made it more complex and competitive. By understanding the latest developments and planning carefully, employers and foreign workers can better navigate the challenges and opportunities ahead.

Learn Today

H-1B Visa → A U.S. work visa for foreign specialty occupation workers in fields like STEM and engineering.
USCIS → United States Citizenship and Immigration Services, the agency overseeing immigration benefits and visa programs.
Beneficiary-Centric Selection → A lottery system where each worker is selected only once, regardless of multiple employer registrations.
Fiscal Year → A government accounting period used for budgeting and reporting, starting October 1 annually in the U.S.
Petition → A formal request filed by employers with USCIS to hire a foreign worker under the H-1B visa program.

This Article in a Nutshell

H-1B visa registrations fell dramatically for Fiscal Year 2026 due to enhanced fraud enforcement, rising costs, and a beneficiary-focused selection process, reshaping U.S. employers’ ability to hire foreign skilled workers in specialized fields like technology and engineering.
— By VisaVerge.com

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