Study Finds H-2B Program Supports U.S. Labor Force Amid Reforms

(U.S.) U.S. immigration officials have closed the door on new H-2B filings for the first half of the next fiscal year, after demand again outpaced the supply of seasonal non-agricultural visas. USCIS said it reached the congressionally mandated H-2B cap for the first half of FY 2026 on Sept. 16, 2025, and set a final receipt date of Sept. 12, 2025 for new cap-subject petitions with start dates between Oct. 1, 2025, and March 31, 2026. Petitions received after that date for start dates before April 1, 2026, will be rejected unless they qualify as cap-exempt or meet any future opportunity created by supplemental allocations.

This development confirms employers’ warnings that the fixed annual limit is too low for current labor needs in hospitality, landscaping, seafood processing, and other seasonal industries.

Current cap status and statutory limits

• The statutory H-2B cap remains 66,000 visas per year, split evenly between the two halves of the fiscal year:
  • 33,000 for October–March (first half)
  • 33,000 for April–September (second half)
• USCIS will continue to accept properly filed cap-exempt petitions, including:
  • Extensions for current H-2B workers
  • Changes in terms of employment
  • Changes of employer
  • Any cases falling under future supplemental allocations if the government releases them
• In recent cycles, DHS and DOL have added extra H-2B visas late in the year to meet demand. For example, in FY 2025 the agencies provided an additional 64,716 H-2B visas on top of the base cap, including a 5,000-visa set-aside for returning workers with prior H-2B status in FY 2022–2024 for jobs starting between May 15 and Sept. 30, 2025.

Demand dynamics and recent numbers

The quick cap exhaustion for the first half of FY 2026 mirrors last spring’s surge. For the second half of FY 2025 (April 1–Sept. 30), USCIS announced the cap was hit on March 5, 2025, and rejected filings received on or after March 6 unless they were cap-exempt or fit within supplemental numbers.

• The Department of Labor (DOL) reported that as of Aug. 2, 2025, it had issued final decisions on 8,928 cases for that second half, with certified positions for 120,470 workers—a figure far above the statutory limit due to extra visas.

These figures show employer demand now stretches well beyond the base H-2B cap.

Policy changes that took effect Jan. 17, 2025

A DHS final rule, effective Jan. 17, 2025, modernized several parts of the H-2B program to reduce job disruptions and strengthen worker protections. Key changes include:

• Employment portability
  • H-2B workers can start new jobs with a different employer as soon as the new employer files a non-frivolous H-2 petition.
  • Workers no longer need to wait for approval to begin the new job.
• Grace periods
  • 10-day grace period before work starts.
  • Up to 30 days after work ends.
  • New 60-day grace period to look for a new H-2B job or prepare to leave.
  • During grace periods, workers remain in status but are not authorized to work.
• Countries of origin
  • DHS removed the annual “eligible countries” list.
  • Employers may now recruit from any country if other requirements are met.
• Stay calculations
  • The three-year maximum stay now resets after a uniform 60-day absence outside the U.S., replacing the old “interrupted stay” rules.
• Automatic extensions
  • Filing a timely extension request automatically extends a worker’s employment authorization while USCIS processes the case.
• Penalties and protections
  • Increased penalties for violations (including charging prohibited fees).
  • Reinforced whistleblower protections.
• Permanent residence sponsorship
  • Clarified that an employer’s decision to sponsor an H-2B worker for a green card does not automatically block future H-2B extensions; the visa remains temporary and nonimmigrant.

Officials say these changes aim to balance business needs with worker rights. Employers welcomed the added flexibility, while worker groups praised the grace periods and protections and called for more audits and faster enforcement against wage theft or unsafe conditions.

How the H-2B process works (five main steps)

1. Employer files Form ETA-9142B with DOL to request temporary labor certification.
2. DOL opens statutory filing windows tied to job start dates.
3. Applications filed during the window are placed into randomized groups for processing (Group A first, then B, etc.).
4. After certification, the employer submits Form I-129 to USCIS to request H-2B classification for workers.
5. If approved, workers apply for visas at U.S. consulates abroad and travel for their start dates.

• If the H-2B cap is already met, only cap-exempt filings or those that match supplemental allocations can proceed.

For reference and filing, employers can access:
– DOL temporary labor certification: Form ETA-9142B on the DOL website.
– USCIS petition: Form I-129 on the USCIS website.
– Policy updates and filing guidance: USCIS H-2B Nonimmigrant Workers page.

Immediate practical effects (what employers and workers should do now)

• Employers with petitions received by USCIS on or before Sept. 12, 2025 (for first-half FY 2026 start dates) should:
  • Monitor receipt notices closely.
  • Respond promptly to any Requests for Evidence (RFEs).

• Employers whose petitions arrived after Sept. 12 should:
  • Assess cap-exempt options, or
  • Plan for the second-half filing cycle, and
  • Watch for any future supplemental allocations that could create filing windows.
• Workers already in H-2B status may benefit from:
  • The 60-day grace period, and
  • Portability if switching employers—provided the new employer files a non-frivolous petition before work begins.
• Compliance stakes are higher:
  • With increased penalties and stronger whistleblower protections, employers should review recruitment, fee practices, and housing/transportation terms to ensure full compliance.

Important: Supplemental allocations have been the primary mechanism to meet demand beyond the statutory cap. Employers and worker advocates will closely watch whether DHS and DOL issue additional visas for spring 2026.

Policy and political context

• Supporters of supplemental allocations say extra visas keep businesses open during peak seasons and protect U.S. jobs tied to those operations.
• Critics argue reliance on temporary fixes masks deeper problems:
  • A cap set decades ago
  • Uneven regional demand
  • Challenges in enforcing fair wages and safe working conditions at scale
• Lawmakers remain divided:
  • Some back a market-based model that adjusts numbers by sector and season.
  • Others want stricter oversight before any expansion.
  • No major legislation had passed as of September 2025, leaving DHS to rely on year-by-year tools like supplemental allocations.

DOL data and real-world impacts

• DOL certified 120,470 positions for the second half of FY 2025—far above the base cap of 33,000—demonstrating most approvals depended on added numbers.
• Employer groups say extra approvals prevented service cuts and product delays.
• Worker advocates stress that more visas must be matched with:
  • Inspections
  • Quick remedies when violations occur

Real-world consequences affect communities:
– A Gulf Coast seafood plant may scale back shifts without enough H-2B workers, disrupting suppliers and delivery routes.
– A mountain resort may reduce winter services, cutting hours for U.S. staff who rely on a full team.
– For workers, the longer grace period can mean the difference between a rushed departure and a lawful transfer to a safer job.

Practical steps for employers and workers

Employers:
– Map recruiting timelines to DOL’s filing windows and prepare complete Form ETA-9142B packets early.
– Use the new portability rule to maintain coverage if a worker must switch roles; file promptly to allow work to start without delay.
– Plan compliance reviews and training, especially around prohibited fees and recordkeeping.
– Monitor USCIS cap updates and any DHS notices about supplemental allocations.

Workers and advocates:
– Keep copies of contracts, receipts, and housing terms.
– Report concerns through company channels or to relevant agencies.
– Use whistleblower protections and the added grace periods to seek help or change jobs within the program.

Where to find official guidance

Employers and workers can find official program guidance, cap count updates, and filing instructions on the USCIS H-2B page at the agency’s website. Forms should be sourced directly from government pages:
– DOL’s Form ETA-9142B for labor certification
– USCIS’s Form I-129 for the petition stage

Filing directly from these sources helps avoid outdated versions and reduces processing delays from clerical errors.

Bottom line

As the first-half FY 2026 H-2B cap closes, both sides of the labor market face a familiar wait: Will extra visas arrive, and if so, when and for whom? Until Congress provides a long-term solution, seasonal employers will plan around tight windows, and H-2B workers will rely on the 2025 rule’s flexibility to keep jobs—and status—intact.