H-1B Cap-Gap Now Runs Through April 1 Under H-1B Modernization Final Rule

March 31, 2026 is the key date for this year’s H-1B lottery cycle. USCIS said it intends to notify selected FY 2027 registrants by that date. For F-1 students on OPT, the next deadline is April 1, 2026, the first day employers may file cap-subject H-1B petitions.

This year’s update matters because H-1B Cap-Gap rules changed under the H-1B Modernization Final Rule. Since January 17, 2025, eligible cap-gap protection can run through April 1 of the following fiscal year, rather than ending on October 1.

That change affects both status and work authorization. It also gives employers more room if H-1B adjudications continue past the start date.

📅 Key Date: USCIS plans to issue FY 2027 selection notices by March 31, 2026. Employers may begin filing selected cases on April 1, 2026.

FY 2027 H-1B timeline

USCIS also reminded petitioners on March 19, 2026 that FY 2027 cap petitions “must include an employment start date of no earlier than Oct. 1, 2026.”

The biggest change: cap-gap now runs to April 1

The old cap-gap bridge often ended on October 1. That left some students exposed if USCIS had not finished adjudicating the H-1B petition.

The DHS final rule, effective January 17, 2025, changed that. DHS stated: “As of January 17, 2025, DHS implemented a final H-1B rule that extends the cap-gap extensions of eligible F-1 students from October 1 to April 1 of the relevant fiscal year.”

For FY 2027 cases, that means eligible students may remain protected until April 1, 2027, or until the H-1B start date or petition decision, whichever comes first.

This is one of the most practical changes in the H-1B Modernization Final Rule. It reduces employment gaps caused by delayed adjudications.

Selection does not create cap-gap by itself

This point is often missed. A lottery selection notice does not create cap-gap protection on its own.

Cap-gap starts only when the employer timely files a cap-subject H-1B petition and requests change of status from F-1 to H-1B.

That distinction matters for both employees and HR teams:

• Selected but not yet filed: no cap-gap yet
• Filed with change of status while OPT is valid: status and work authorization may extend
• Filed during the 60-day grace period: status may extend, but work authorization does not

⚠️ Employer Alert: To preserve OPT-based work authorization, the employer must file Form I-129 before the employee’s current EAD expires.

What happens if OPT is still valid when the H-1B is filed

If the employee’s OPT remains valid on the filing date, cap-gap can extend both:

• F-1 status, and
• employment authorization

In that case, the employee may usually continue working through the cap-gap period. Under the current rule, that extension can last until April 1, 2027, if needed.

The extension is generally automatic once USCIS receives the petition. Still, employees should ask their DSO for an updated I-20 showing cap-gap notation.

That school record is often needed for I-9 reverification and for employer records.

What happens if OPT has expired and the student is in the grace period

If the student’s OPT expires before April 1, the situation changes.

The student enters the 60-day grace period. If the employer files the H-1B during that grace period and requests change of status, the student may remain in the United States. However, the student cannot work during that period.

This is the most time-sensitive scenario for March and early April graduates or STEM OPT holders near expiration.

💼 Employee Tip: If your EAD expires before April 1, filing during the grace period may protect your stay, but it will not restore work permission before October 1, 2026.

One-registration-per-beneficiary rule still applies

FY 2027 continues the beneficiary-centric system. USCIS counts the person, not the number of employers that registered them.

That means one beneficiary gets one chance in the selection process, even if several employers submit registrations.

This rule was aimed at duplicate registrations and lottery abuse. It remains a major compliance issue for employers. HR teams should confirm that every registration reflects a real job offer and accurate beneficiary information.

2026 context: new wage-based selection and the $100,000 fee

This cycle also includes a major 2026 policy shift. A wage-weighted selection process took effect on February 27, 2026.

Under that framework, higher-paid positions receive better odds. For example:

• Wage Level I: 1 entry
• Wage Level IV: up to 4 entries

That puts more focus on the offered wage, job classification, and experience level. Employers should double-check the SOC code and prevailing wage level before filing. Employees should confirm the position is classified correctly.

USCIS also continues to review specialty occupation evidence closely. Level I wages, broad job descriptions, and weak degree-to-duty links remain common problem areas.

A separate issue is the $100,000 supplemental fee for certain petitions, effective September 19, 2025. Many change of status filings tied to cap-gap are generally not the target of that fee. Still, employers should review filing strategy early, especially if consular processing is under consideration.

Have FY 2027 registration totals and selection rates been released?

As of March 30, 2026, USCIS had not yet released full FY 2027 registration totals or a final selection rate.

That means a direct registration-volume comparison to the prior fiscal year is not yet available. Once USCIS publishes the data, employers should compare:

• total registrations
• eligible registrations
• selections made
• selection rate
• impact of the wage-weighted system

This year’s cycle will be watched closely because it is the first full cap season affected by the new wage-based selection method.

If selected, what happens next?

After selection, the employer may file the H-1B petition starting April 1, 2026. The filing package usually includes:

• Form I-129
• certified LCA
• specialty occupation support letter
• degree evidence
• maintenance of status records
• proof of offered wage
• filing fees

Employers must pay the higher of the prevailing wage or actual wage. Employees should verify the salary aligns with the assigned wage level and worksite location.

If not selected, what are the alternatives?

Not being selected does not end all options. Common alternatives include:

• Cap-exempt H-1B with universities or affiliated nonprofits
• O-1 for workers with documented high achievement
• L-1 for intracompany transferees
• STEM OPT extension, if eligible
• Day 1 CPT, where lawful and school-supported
• consular filing in a future cap season

For some workers, a cap-exempt employer can be the fastest path. For others, STEM OPT may provide enough time to enter next year’s lottery.

Looking ahead to FY 2028

If USCIS keeps the same pattern, the next registration period should open in March 2027. Employers should begin role review, wage analysis, and LCA planning in January 2027.

That is even more important now because wage level may affect selection odds.

⏰ Deadline: Selected FY 2027 beneficiaries generally need petition filing between April 1 and June 30, 2026. Late filing can end the case, even after selection.

Employers should confirm selection notices on March 31, review the offered wage level, and prepare the Form I-129 package for filing on or after April 1, 2026. Employees should check OPT and EAD expiration dates, request a cap-gap I-20 from their DSO after filing, and confirm whether the petition seeks change of status rather than consular processing. Both sides should track the October 1, 2026 start date and use official USCIS H-1B pages for any rule updates.

📋 Official Resources:

– H-1B Program: uscis.gov/h-1b-specialty-occupations

– Cap Season: uscis.gov/h-1b-cap-season

– Prevailing Wages: flcdatacenter.com