ORF Warns H-1B Curbs Could Damage U.S. Economic Growth

USCIS has implemented a one-registration-per-person rule for the FY 2026 H-1B lottery to reduce fraud. However, a new $100,000 fee and heightened scrutiny on specialty occupations have increased the burden on employers. The cycle requires precise filing between April and June 2025, with alternative visa options like O-1 or L-1 becoming more attractive for those not selected or deterred by rising costs.

?Key takeawaysVisaVerge.com
  • The FY 2026 process uses a beneficiary-centric selection model to ensure one entry per individual.
  • A new $100,000 one-time fee for certain petitions was upheld by a federal court in December 2025.
  • Selected employers must file petitions between April 1 and June 30 for October employment starts.

USCIS completed the FY 2026 H-1B cap process using the beneficiary-centric model, meaning one registration per person counted for selection purposes. The policy backdrop shifted again on September 19, 2025, when President Trump announced a new $100,000 one-time H-1B processing fee for certain petitions, with a federal court decision on December 23, 2025 leaving that fee intact.

That combination—tighter integrity rules, higher costs, and elevated scrutiny—has pushed many employers to revisit hiring plans. It has also forced selected beneficiaries to plan carefully for filing, travel, and start-date compliance.

Quick FY 2026 H‑1B cap timeline

Free toolH-1B Cost Calculator Online
ORF Warns H-1B Curbs Could Damage U.S. Economic Growth
ORF Warns H-1B Curbs Could Damage U.S. Economic Growth

? Key Date: FY 2026 cap employment start date was October 1, 2025. Cap filings are typically submitted from April 1 through June 30.

FY 2026 H-1B cap timeline (typical USCIS schedule)

FY 2026 Milestone Date
Registration Opens March 7, 2025
Registration Closes March 24, 2025
Selection Notification By March 31, 2025
Filing Window Opens April 1, 2025
Employment Start October 1, 2025

Even after selection, the case is not “approved.” Selection only gives the employer the right to file an H-1B cap petition during the filing window.

What changed in 2025: “One registration per beneficiary” is now the rule

USCIS moved to a beneficiary-centric selection process in 2025. Each person should only have one shot in the lottery, even if multiple employers register.

This change affected stakeholders differently:

  • For employees: it reduced the multiple entries advantage.
  • For compliant employers: it reduced pressure to match aggressive registrants.
  • For USCIS: it supported fraud detection and duplicate filtering.

⚠️ Employer Alert: Multiple employers can still register the same person. Each registration must be for a real job offer. Collusion risks denials and referrals.

FY 2026 lottery numbers: what we can and cannot confirm today

As of Friday, December 26, 2025, USCIS has not released a single, definitive FY 2026 cap “final” statistic set in this prompt’s record. Many employers tracked selection waves in spring 2025. However, the actionable compliance point remains the same.

Selection does not change the employer’s burden. The petition must still prove:

  • A specialty occupation,
  • A valid employer-employee relationship, and
  • A compliant Labor Condition Application (LCA).

Comparison to the prior year: why selection “felt” different

Many stakeholders compared FY 2026 to FY 2025 because FY 2025 was the last cycle widely associated with heavy duplicate registrations. The 2025 shift aimed to reduce that distortion.

Behavioral changes under the new rule included:

  • Employers spent more time on role specificity before registering.
  • Employees relied less on “backup registrants” to raise odds.
  • USCIS increased scrutiny on Level I wage cases and broad job descriptions.

The new cost pressure: H-1B visa curbs and the $100,000 fee

The most dramatic 2025 development was the announcement of a $100,000 one-time H-1B processing fee, attributed to President Trump on September 19, 2025. A U.S. district court decision on December 23, 2025 left the fee standing after litigation.

Supporters describe the measure as a deterrent against low-wage hiring and misuse. Critics argue it functions as a near-ban for many legitimate employers.

From a compliance standpoint, employers should assume two realities:

  1. USCIS will expect tight specialty occupation evidence.
  2. Government cost will become a major part of budgeting, alongside wages.

Standard H-1B fee structure (baseline)

Fee Type Amount Who Pays
Registration $215 Employer
Base Filing (I-129) $780 Employer
ACWIA Fee (25+ employees) $1,500 Employer
ACWIA Fee (<25 employees) $750 Employer
Fraud Prevention Fee $500 Employer
Premium Processing $2,805 Either

If the $100,000 H-1B processing fee applies, it sits on top of these baseline items. Employers should also plan for attorney fees and posting obligations.

After selection: what happens next

For selected beneficiaries

Once selected, the employer files the Form I-129 H-1B petition with the certified LCA and supporting evidence.

The strongest filings share three traits:

  • A job description mapped to a specific SOC code.
  • Degree alignment with the role’s specialty requirements.
  • Wage set at the higher of prevailing wage or actual wage.

Prevailing wage levels matter more than ever. Level I roles face additional skepticism. The Department of Labor (DOL) defines Level I as entry level with close supervision.

Level DOL Description Percentile Typical Experience
Level I Entry 17th 0–2 years, close supervision
Level II Qualified 34th 2–4 years, limited judgment
Level III Experienced 50th 4–6 years, independent
Level IV Fully Competent 67th 6+ years, expert

? Employee Tip: Ask for the SOC code and wage level before filing. Confirm the offered salary meets or exceeds the prevailing wage in your work location.

For not selected beneficiaries

Non-selection means the employer cannot file a cap-subject H-1B for FY 2026. The employee should focus on maintaining status and planning alternatives.

Important actions for non-selected employees:

  • If in F-1 OPT or STEM OPT, confirm work authorization dates.
  • Coordinate travel plans carefully to avoid breaking work authorization timing.
  • Consider cap-exempt or other visa strategies (see “Alternatives” section).

Travel and visa stamping: avoid common FY 2026 mistakes

Cap-subject H-1B approval does not automatically grant entry. You need the right status and documentation.

Common risk points:

  • Traveling while a change of status is pending can trigger consular processing.
  • Visa stamping can require additional security checks and delays.
  • Port-of-entry officers can request the LCA, offer letter, and recent pay evidence.

Employees should carry:

  • The approval notice,
  • An employment verification letter, and
  • Recent paystubs after starting H-1B employment.

Avoid international travel during pending change-of-status petitions to minimize risk.

Alternatives if you missed the FY 2026 cap

Several options remain viable, depending on the person’s profile and the employer’s structure.

Option Who it fits Notes
Cap-exempt H-1B Universities, nonprofit research, affiliated entities No lottery. Filing is year-round.
O-1 High achievers in STEM, arts, business Strong evidence required. Works well for top publications or awards.
L-1 Multinational transfers Requires qualifying overseas employment and entity relationship.
TN Certain Canadian and Mexican professionals Limited occupations. Requires clean job-fit documentation.
E-3 Australian nationals Quicker cycles in many cases. Specialty occupation rules apply.

Employers should also examine cap-exempt strategies, like legitimate placements at qualifying institutions. The relationship and worksite control must be real.

Next year’s projected timeline: FY 2027 planning

Most employers should plan for the FY 2027 cycle on the usual cadence. Registration still typically occurs in March.

FY 2027 Milestone (projected) Target Timing
Registration Early-to-mid March 2026
Selection Results Late March / Early April 2026
Filing Window April 1 – June 30, 2026
Employment Start October 1, 2026

Deadline: Begin role scoping and prevailing wage review in January 2026. March registration arrives quickly, and job details must be consistent.

Practical compliance steps, starting now

Employers should complete three items before the next registration window:

  1. Finalize a defensible SOC code and worksite location.
  2. Set salary at or above the prevailing wage level.
  3. Prepare specialty-occupation evidence, especially for Level I roles.

Employees should:

  • Request the SOC code, wage level, and worksite address in writing.
  • Track passport validity and plan visa stamping timing.
  • Avoid international travel during pending change-of-status petitions.

? Official Resources:
– H-1B Program: H-1B Program
– Cap Season: Cap Season
– Prevailing Wages: Prevailing Wages

?Learn today
Beneficiary-centric
A selection process where each individual is entered into the lottery only once based on their passport or travel document.
SOC Code
Standard Occupational Classification system used by federal agencies to classify workers into occupational categories.
LCA
Labor Condition Application, a prerequisite for H-1B filing that ensures the employer pays the prevailing wage.
Cap-Exempt
Employers such as universities or nonprofit research organizations that are not subject to the annual 85,000 visa limit.

?This Article in a Nutshell

The FY 2026 H-1B cap cycle marks a shift toward higher integrity and significantly higher costs. With the new beneficiary-centric model, the lottery is fairer, but the introduction of a $100,000 processing fee and increased scrutiny on Level I wage roles create new barriers. Employers must meticulously prepare Labor Condition Applications and specialty occupation evidence to succeed in an environment defined by fiscal deterrence and strict regulatory compliance.

People also ask

Answers from VisaVerge guides
What steps should employers take to ensure a successful H-1B application under the FY 2026 process?

Employers should conduct internal audits focusing on documentation accuracy, wage and job classification compliance, LCA compliance, and employer-employee relationship documentation, while also forming an H-1B Compliance Team, developing a checklist, conducting periodic training, and employing review layers.

Read: How Internal Audits Help Catch Issues in H-1B Lottery Applications
What are the key dates for FY2026 H-1B applicants to keep in mind?

Key dates include March 7-24, 2025, for registration; by March 31, 2025, for notification of selected candidates; April 1, 2025, for filing complete petitions; and October 1, 2025, as the start date for employment under approved FY2026 H-1B petitions.

Read: H-1B Visa Rules Tighten as Lottery Applications Begin
When does H-1B cap registration typically open for FY 2027?

H-1B cap registration for FY 2027 is typically early-to-mid March 2026.

Read: H-1B Visa Health Care Sector Seeks Exemption from $100,000 Fee
Why should employers start preparing for FY 2027 H-1B filings early?

Employers should prepare early due to appointment cancellations and longer visa stamping timelines in India, which can lead to payroll and compliance problems for stuck employees.

Read: H-1B and H-4 Travel to India: Delays and Enhanced Vetting Effects
When should employers begin preparing for the FY 2027 H-1B cap season?

Employers should begin preparing LCAs and internal wage checks in January 2026.

Read: Walmart's H-1B Hiring Surges: Salary Ranges and Roles Revealed
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Priya Nair

Priya Nair is VisaVerge.com's Work Visa Correspondent, specializing in employment-based immigration — H-1B, L-1, O-1, TN, OPT, and the PERM and green-card process. She breaks down lottery odds, prevailing-wage rules, and employer obligations for the skilled professionals who navigate them every year. Priya's guides help workers and employers make confident, well-informed decisions about building a career in the United States.

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