Official VisaVerge Logo Official VisaVerge Logo
  • Home
  • Airlines
  • H1B
  • Immigration
    • Knowledge
    • Questions
    • Documentation
  • News
  • Visa
    • Canada
    • F1Visa
    • Passport
    • Green Card
    • H1B
    • OPT
    • PERM
    • Travel
    • Travel Requirements
    • Visa Requirements
  • USCIS
  • Questions
    • Australia Immigration
    • Green Card
    • H1B
    • Immigration
    • Passport
    • PERM
    • UK Immigration
    • USCIS
    • Legal
    • India
    • NRI
  • Guides
    • Taxes
    • Legal
  • Tools
    • H-1B Maxout Calculator Online
    • REAL ID Requirements Checker tool
    • ROTH IRA Calculator Online
    • TSA Acceptable ID Checker Online Tool
    • H-1B Registration Checklist
    • Schengen Short-Stay Visa Calculator
    • H-1B Cost Calculator Online
    • USA Merit Based Points Calculator – Proposed
    • Canada Express Entry Points Calculator
    • New Zealand’s Skilled Migrant Points Calculator
    • Resources Hub
    • Visa Photo Requirements Checker Online
    • I-94 Expiration Calculator Online
    • CSPA Age-Out Calculator Online
    • OPT Timeline Calculator Online
    • B1/B2 Tourist Visa Stay Calculator online
  • Schengen
VisaVergeVisaVerge
Search
Follow US
  • Home
  • Airlines
  • H1B
  • Immigration
  • News
  • Visa
  • USCIS
  • Questions
  • Guides
  • Tools
  • Schengen
© 2025 VisaVerge Network. All Rights Reserved.
H1B

H-1B Visa Applications Drop 23% as California Developers Lead Demand

H-1B labor filings dropped 23% in Q1 FY2026 as new $100,000 fees and wage-based selection rules prioritize high-paid tech roles in California and beyond.

Last updated: February 24, 2026 5:15 pm
SHARE
Key Takeaways
→U.S. employers filed 23.1% fewer LCAs in the first quarter of fiscal year 2026.
→Software developer roles and California-based positions continue to dominate the H-1B pipeline.
→New regulations now prioritize higher-paid workers while adding significant $100,000 filing fees.

(CALIFORNIA) — U.S. employers filed fewer H-1B-related labor condition applications in the first quarter of Fiscal Year 2026, even as demand stayed concentrated in Software developers and in California developers, government data showed.

DOL OFLC data for the quarter ending December 2025 recorded 76,164 Labor Condition Applications (LCAs) filed, a 23.1% decline from the same period a year earlier.

H-1B Visa Applications Drop 23% as California Developers Lead Demand
H-1B Visa Applications Drop 23% as California Developers Lead Demand

The drop matters early in the FY 2026 cycle because LCA activity often signals how many employers are preparing to sponsor foreign workers, even before petitions reach U.S. Citizenship and Immigration Services.

Software roles remained central to that pipeline, and California continued to dominate, keeping the H-1B Visa debate focused on whether changing rules and new costs will reshape which jobs, workers and regions win approvals.

USCIS framed the FY 2026 cap picture early, announcing on March 31, 2025: “U.S. Citizenship and Immigration Services has received enough electronic registrations for unique beneficiaries during the initial registration period to reach the fiscal year (FY) 2026 H-1B numerical allocations (H-1B cap), including the advanced degree exemption (master’s cap).” The agency posted the alert at FY 2026 H-1B initial registration selection process completed.

That “cap reached” language refers to the annual numerical limits on new H-1B approvals, including a separate pool for applicants covered by the advanced degree exemption, also known as the master’s cap.

Fee policy changed the cost side of the program later in the year, when a Presidential Proclamation added a new payment requirement tied to filing dates.

A USCIS page summarizing the proclamation said: “Under the Proclamation, new H-1B petitions filed at or after 12:01 a.m. eastern daylight time on September 21, 2025 must be accompanied by an additional $100,000 payment as a condition of eligibility.” USCIS included that language on its H-1B specialty occupations page.

Regulators also moved the selection rules toward wage-based weighting. On Dec. 23, 2025, DHS announced a final rule to: “.amend regulations governing the process by which USCIS selects H-1B registrations. The rule implements a weighted selection process that will favor allocating H-1B visas to higher-skilled and higher-paid aliens while maintaining the opportunity for employers to secure H-1B workers at all wage levels.” The rule is effective February 27, 2026, DHS said in an alert at DHS announces final rule to modernize H-1B selection process.

Q1 FY 2026 H-1B LCA activity at a glance (OFLC)
LCAs Filed
76,164
Year-over-Year Change
-23.1%
LCAs Certified
75,488
Software Developers Share
34%

The first-quarter DOL OFLC figures sit upstream from USCIS decisions. LCAs are employer attestations tied to job roles, worksites and wage requirements, and they do not by themselves mean a worker has a visa.

Even so, immigration lawyers, employers and workers watch LCA filings because they indicate how many positions companies are positioning for the H-1B pipeline, and where those positions cluster.

In Q1 FY 2026, employers filed 76,164 LCAs and DOL certified 75,488, reflecting a high certification rate that the data described as over 90%.

Software Developers accounted for the largest share of certified positions, with 55,517 (34%) of all certified roles, the DOL OFLC data showed.

→ Note
Treat OFLC LCA counts as a demand signal, not a final visa outcome. Cross-check any conclusions with USCIS cap-season updates because an LCA can be filed without a cap petition, and petition selection/approval happens on a different track.

Geography also stayed concentrated. California led with 53,940 certified positions, or 33% of the national total, followed by Texas at 12.6% and Washington at 7.8%.

Nearly 68% of all certified H-1B positions were located in five states: California, Texas, Washington, New York, and Illinois, the data showed, underscoring how a small set of labor markets captures most of the program’s certified demand.

Officials did not attribute the Q1 decline to a single cause in the government statistics, but the quarter unfolded after a series of compliance and cost changes that employers must now price into sponsorship decisions.

The additional $100,000 payment attaches to “new H-1B petitions filed at or after 12:01 a.m. eastern daylight time on September 21, 2025,” creating a higher upfront threshold for filing in cases covered by the proclamation language published by USCIS.

That added cost can influence which jobs employers choose to sponsor, and when, especially for firms that submit multiple petitions or rely on H-1B hiring to staff client work.

USCIS also implemented a “beneficiary-centric” approach for the FY 2025 and FY 2026 caps, a change the government data described as reducing “multiple registrations” for the same person, which can make topline demand appear lower while shifting the count toward unique individuals.

For employers, fewer duplicate registrations can change expectations about how many entries translate into real petition work, because the registration pool can better reflect distinct candidates rather than repeated submissions.

The coming shift to a weighted selection rule adds another moving part. DHS said the final rule effective February 27, 2026 “will favor allocating H-1B visas to higher-skilled and higher-paid aliens” while still “maintaining the opportunity” for employers at all wage levels, which puts compensation strategy closer to the center of cap-season planning.

→ Analyst Note
When a policy change has an “effective date,” match it to the filing date on the petition, not the registration date. Save a PDF or screenshot of the USCIS announcement and the relevant Federal Register page for your records and internal compliance notes.

For workers and companies, the combination of lower LCA volume and changes in selection mechanics shapes how people read the odds. The government figures described a higher selection rate under the unique beneficiary system, putting it at roughly 35% in FY 2026 versus 29% in FY 2025.

That directional increase can look encouraging for registered beneficiaries, but the cost environment and the tilt toward higher pay can raise questions about who gets sponsored in the first place, particularly for roles and candidates at lower wage levels.

The data also pointed to pressure on early-career candidates. It described the combination of the $100,000 fee and the shift toward higher-wage selection as making it harder for “entry-level developers or those at lower wage levels to secure sponsorship,” and it tied the wage-focused change to a timeline “starting FY 2027.”

Operational performance offered a different signal. Despite lower volume, the government data said USCIS processed 100% of applications on time during the Q1 period, which it described as indicating no backlogs for remaining filings.

Even with that on-time figure, cap season still concentrates filings and deadlines, and companies typically align internal recruiting and legal review around registration and petition windows, especially when selection outcomes drive whether petitions can proceed.

The concentration story remained unmistakable in the Q1 numbers: California and Software developers led by wide margins, and the spread across a handful of states reinforced how the program continues to track the country’s largest tech and consulting ecosystems.

Software developer roles also persisted as the top category by share. The DOL OFLC figures put Software Developers at 55,517 (34%) of certified positions, far ahead of Electronics Engineers at 11.9% and Occupational Therapists at 6.0%.

California’s lead stood out not just in rank but in scale. The state’s 53,940 certified positions represented 33% of the national total, leaving all other states competing for the remaining two-thirds, even as Texas and Washington followed as the next-largest shares.

Such concentration can shape recruiting behavior. Employers seeking H-1B workers for Software developers can face the combined effects of competition within dominant hubs, shifting selection mechanics, and higher filing costs that may change which roles get prioritized for sponsorship.

Outside the largest hubs, the same concentration can alter incentives, pushing some firms to weigh whether to sponsor at all, or to focus sponsorship on positions that align with higher wage levels if the weighted selection process rewards those filings.

For California developers and other Software developers tracking the FY 2026 cycle, the most direct way to confirm cap updates and rule effective dates remains the federal websites that publish the underlying alerts and program descriptions.

USCIS maintains its H-1B program information on its H-1B specialty occupations page, and it posts cap and selection alerts through its newsroom, including the March 31, 2025 notice at FY 2026 H-1B initial registration selection process completed and the Dec. 23, 2025 rule announcement at DHS announces final rule to modernize H-1B selection process.

DOL publishes LCA filings and certifications through its OFLC performance reporting, including the data cited for Q1 FY 2026, at foreignlaborcert.doleta.gov.

Reconciling the two sets of metrics requires keeping the pipeline straight: DOL OFLC LCA counts track employer labor-condition attestations tied to roles and locations, while USCIS metrics track registrations, selections and petitions that determine who ultimately receives an H-1B approval under the cap and the advanced degree exemption.

As DHS put it when finalizing the selection change, the new approach “will favor allocating H-1B visas to higher-skilled and higher-paid aliens while maintaining the opportunity for employers to secure H-1B workers at all wage levels.”

→ In a NutshellVisaVerge.com

H-1B Visa Applications Drop 23% as California Developers Lead Demand

H-1B Visa Applications Drop 23% as California Developers Lead Demand

Data for FY 2026 shows a significant decrease in H-1B labor filings, even as tech hubs like California and Texas remain the top destinations for software talent. New federal rules now emphasize wage-based selection and impose higher financial burdens on employers. While processing times remain efficient, the combination of increased costs and a shift toward high-earning beneficiaries marks a transformative phase for U.S. specialty occupation visas.

Share This Article
Facebook Pinterest Whatsapp Whatsapp Reddit Email Copy Link Print
What do you think?
Happy0
Sad0
Angry0
Embarrass0
Surprise0
Visa Verge
ByVisa Verge
Senior Editor
Follow:
VisaVerge.com is a premier online destination dedicated to providing the latest and most comprehensive news on immigration, visas, and global travel. Our platform is designed for individuals navigating the complexities of international travel and immigration processes. With a team of experienced journalists and industry experts, we deliver in-depth reporting, breaking news, and informative guides. Whether it's updates on visa policies, insights into travel trends, or tips for successful immigration, VisaVerge.com is committed to offering reliable, timely, and accurate information to our global audience. Our mission is to empower readers with knowledge, making international travel and relocation smoother and more accessible.
Subscribe
Login
Notify of
guest

guest

0 Comments
Inline Feedbacks
View all comments
H-1B Workforce Analysis Widget | VisaVerge
Data Analysis
U.S. Workforce Breakdown
0.44%
of U.S. jobs are H-1B

They're Taking Our Jobs?

Federal data reveals H-1B workers hold less than half a percent of American jobs. See the full breakdown.

164M Jobs 730K H-1B 91% Citizens
Read Analysis
Dutch Tax Unrealized Gains Box 3 Actual Return Tax Law January 1, 2028
Digital Nomads

Dutch Tax Unrealized Gains Box 3 Actual Return Tax Law January 1, 2028

NTSB Opens Investigation Into United Airlines Tail Strike in Las Vegas
Airlines

NTSB Opens Investigation Into United Airlines Tail Strike in Las Vegas

Department of Labor and OMB Push H-1B Visa Wage Rule Closer to Final
H1B

Department of Labor and OMB Push H-1B Visa Wage Rule Closer to Final

Passport Card: Your Essential Travel Document for Border Crossing ID
Documentation

Passport Card: Your Essential Travel Document for Border Crossing ID

Global U.S. Visa Appointment Wait Times – April 25, 2025 Update
Visa

Global U.S. Visa Appointment Wait Times – April 25, 2025 Update

IRS 2025 vs 2024 Tax Brackets: Detailed Comparison and Changes
News

IRS 2025 vs 2024 Tax Brackets: Detailed Comparison and Changes

US Citizens Transiting Heathrow Airside Still Do Not Need an ETA
Travel

US Citizens Transiting Heathrow Airside Still Do Not Need an ETA

Guide to Reaching Air Canada Customer Service with Ease
Airlines

Guide to Reaching Air Canada Customer Service with Ease

Year-End Financial Planning Widgets | VisaVerge
Tax Strategy Tool
Backdoor Roth IRA Calculator

High Earner? Use the Backdoor Strategy

Income too high for direct Roth contributions? Calculate your backdoor Roth IRA conversion and maximize tax-free retirement growth.

Contribute before Dec 31 for 2025 tax year
Calculate Now
Retirement Planning
Roth IRA Calculator

Plan Your Tax-Free Retirement

See how your Roth IRA contributions can grow tax-free over time and estimate your retirement savings.

  • 2025 contribution limits: $7,000 ($8,000 if 50+)
  • Tax-free qualified withdrawals
  • No required minimum distributions
Estimate Growth
For Immigrants & Expats
Global 401(k) Calculator

Compare US & International Retirement Systems

Working in the US on a visa? Compare your 401(k) savings with retirement systems in your home country.

India UK Canada Australia Germany +More
Compare Systems

You Might Also Like

Top 10 Best Student Cities Worldwide for 2026 Revealed
Knowledge

Top 10 Best Student Cities Worldwide for 2026 Revealed

By
Sai Sankar
China Southern Doubles Guangzhou–Brisbane Flights, Driving Record Australia–China Traffic
Airlines

China Southern Doubles Guangzhou–Brisbane Flights, Driving Record Australia–China Traffic

By
Jim Grey
Colombia Rejects U.S. Deportation Flights
News

Colombia Rejects U.S. Deportation Flights

By
Jim Grey
Schengen Area Enlargement: Bulgaria and Romania Join – European Council Decision
Schengen

Schengen Area Enlargement: Bulgaria and Romania Join – European Council Decision

By
Oliver Mercer
Show More
Official VisaVerge Logo Official VisaVerge Logo
Facebook Twitter Youtube Rss Instagram Android

About US


At VisaVerge, we understand that the journey of immigration and travel is more than just a process; it’s a deeply personal experience that shapes futures and fulfills dreams. Our mission is to demystify the intricacies of immigration laws, visa procedures, and travel information, making them accessible and understandable for everyone.

Trending
  • Canada
  • F1Visa
  • Guides
  • Legal
  • NRI
  • Questions
  • Situations
  • USCIS
Useful Links
  • History
  • USA 2026 Federal Holidays
  • UK Bank Holidays 2026
  • LinkInBio
  • My Saves
  • Resources Hub
  • Contact USCIS
web-app-manifest-512x512 web-app-manifest-512x512

2026 © VisaVerge. All Rights Reserved.

2026 All Rights Reserved by Marne Media LLP
  • About US
  • Community Guidelines
  • Contact US
  • Cookie Policy
  • Disclaimer
  • Ethics Statement
  • Privacy Policy
  • Terms and Conditions
wpDiscuz
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?