USCIS reports fewer FY 2026 H-1B Cap Season registrations

Key Takeaways

• FY 2026 H-1B registrations dropped to 343,981 from 470,342 due to anti-fraud reforms.
• Selection rate rose to 35.3%, with 118,660 beneficiaries selected out of 336,153 applicants.
• H-1B Modernization Rule effective January 17, 2025, updates specialty occupation and entrepreneur eligibility.

The U.S. Citizenship and Immigration Services (USCIS) released its official statistics for the Fiscal Year (FY) 2026 H-1B cap season in mid-May 2025, revealing a significant shift in the landscape for skilled foreign workers and their employers. The new data shows a marked decrease in both total registrations and unique beneficiaries compared to the previous year, continuing a trend that began after recent anti-fraud reforms. As the H-1B program undergoes major regulatory changes set to take effect in January 2025, employers, applicants, and immigration attorneys are closely watching how these developments will shape opportunities for highly skilled professionals in the United States 🇺🇸.

What’s New in the FY 2026 H-1B Cap Season?

The H-1B visa program allows U.S. employers to temporarily employ foreign workers in specialty occupations—jobs that typically require a bachelor’s degree or higher in a specific field. Each year, USCIS runs a lottery to allocate a limited number of H-1B visas, with a cap of 85,000 (65,000 regular cap plus 20,000 for those with advanced degrees from U.S. institutions).

For FY 2026, the H-1B cap registration period took place in March 2025. Employers submitted electronic registrations for prospective employees, and USCIS conducted a random selection process to determine which beneficiaries could move forward with full H-1B petitions. The initial petition filing window closes on June 30, 2025. USCIS has not yet announced whether a second lottery will occur; this decision will be made after the filing window ends.

Key Statistics: Fewer Registrations, Higher Selection Rate

The headline from this year’s data is clear: fewer people are competing for H-1B visas, but those who do have a better chance of being selected. Here’s a breakdown of the main numbers:

• Total eligible registrations: 343,981 (down from 470,342 in FY 2025)
• Unique beneficiaries: 336,153 (down from 423,028 in FY 2025)
• Unique employers: Approximately 57,600 (similar to 52,700 in FY 2025)
  – Beneficiaries selected: 118,660 (selection rate: 35.3%, up from 29% in FY 2025)
• Average registrations per beneficiary: 1.01 (down from 1.06 in FY 2025)

These numbers reflect the second year of a beneficiary-centric selection process, where each unique individual is entered into the lottery only once, no matter how many employers submit registrations for them. This approach aims to reduce fraud and prevent “gaming” of the system, where multiple employers might submit registrations for the same person to increase their odds.

Why Did Registrations Drop?

USCIS attributes the sharp decline in total registrations and unique beneficiaries to the anti-fraud measures and the new selection process. Before these changes, it was common for the same person to appear in the lottery multiple times, artificially inflating the number of registrations. Now, with the beneficiary-centric system, each person gets only one chance, regardless of how many employers are interested in hiring them.

Immigration attorneys and employers generally support these reforms, noting that they make the process fairer and more transparent. However, some experts caution that the drop in registrations may also reflect increased scrutiny and complexity, which could discourage legitimate applicants and smaller employers from participating.

What’s Changing in 2025? The H-1B Modernization Rule

Starting January 17, 2025, major regulatory changes—known as the H-1B Modernization Rule—will take effect. These updates are designed to clarify eligibility, strengthen program integrity, and make the H-1B process more accessible for certain groups, such as entrepreneurs.

Key changes include:

• Revised definition of “specialty occupation”: The new rule clarifies what qualifies as a specialty occupation, requiring more specific documentation to prove that a job truly needs a degree in a particular field.
• Entrepreneur eligibility: Entrepreneurs can now have their own companies file H-1B petitions on their behalf, opening new doors for startup founders and self-employed professionals.
• Stronger cap-gap protections: F-1 students who are waiting for H-1B approval will have better protections to avoid gaps in their work authorization.
• Enhanced enforcement: USCIS will have greater authority to conduct site inspections and impose penalties for non-compliance.
• New Form I-129: All H-1B petitions filed on or after January 17, 2025, must use the updated Form I-129.
• Deference to prior approvals: The rule codifies that USCIS officers should generally defer to prior approvals when reviewing extension or amendment petitions, unless there has been a material change.

For the full text of the modernization rule and regulatory updates, consult the Federal Register.

Step-by-Step: How the FY 2026 H-1B Cap Season Works

To help applicants and employers understand the process, here’s a step-by-step overview of the FY 2026 H-1B cap season:

1. Registration Period: In March 2025, employers submitted electronic registrations for each prospective H-1B worker.
2. Lottery Selection: USCIS conducted a random selection based on unique beneficiaries, not total registrations.
3. Notification: Selected registrants were notified and invited to file full H-1B petitions.
4. Petition Filing Window: Selected employers must file full petitions by June 30, 2025.
5. Second Lottery (if needed): After June 30, USCIS will decide if a second lottery is necessary to fill the cap.
6. New Rules Effective January 17, 2025: All petitions filed on or after this date must use the new Form I-129 and comply with the modernization rule.

For official updates, procedures, and forms, visit the USCIS H-1B Cap Season Page.

New Filing Fees: What Employers Need to Know

As of April 1, 2024, new filing fees apply to H-1B petitions:

• Form I-129: $780 for large employers (26 or more full-time employees), $460 for small employers and nonprofits
• Asylum Program Fee: $600 for large employers, $300 for small employers, $0 for nonprofits

These fees are in addition to other standard costs, such as the ACWIA fee, fraud prevention fee, and, if applicable, premium processing. Employers should budget carefully and ensure they use the correct fee amounts when submitting petitions.

Real-World Impact: What Do These Changes Mean for Stakeholders?

For Employers

Employers benefit from a higher selection rate, meaning their chosen candidates have a better chance of being picked in the lottery. However, they must now adapt to stricter documentation requirements, higher fees, and increased compliance checks. According to analysis by VisaVerge.com, many employers are investing more in legal support and internal processes to avoid mistakes that could lead to denials or penalties.

Example:
A mid-sized tech company in California 🇺🇸 registered five candidates for the FY 2026 H-1B cap. Under the new system, each candidate had only one entry, regardless of whether other companies also registered them. Two of the five were selected, giving the company a 40% success rate—higher than in previous years. However, the HR team had to spend extra time gathering detailed job descriptions and degree requirements to meet the new specialty occupation standards.

For Foreign Workers

Applicants now face a more straightforward lottery, with less risk of being crowded out by duplicate registrations. The higher selection rate is good news, but the overall drop in registrations means fewer people are trying for H-1B status. Those selected must ensure their petitions are complete and accurate, especially with the new specialty occupation rules.

Example:
Priya, an F-1 student on Optional Practical Training (OPT), was registered by her employer for the FY 2026 H-1B lottery. She was selected and is now preparing her petition. Thanks to the strengthened cap-gap protections, she can continue working while her H-1B petition is pending, reducing the risk of a gap in her employment authorization.

For Startups and Entrepreneurs

The modernization rule’s new provisions for entrepreneurs are a double-edged sword. On one hand, founders can now have their own companies sponsor them for H-1B status. On the other, the stricter documentation requirements and higher compliance burden may be challenging for small startups with limited resources.

Example:
A startup founder in New York 🇺🇸 used the new entrepreneur provision to have her company file an H-1B petition on her behalf. She had to provide detailed evidence that her role required a specific degree and that she had a genuine employer-employee relationship with her company. While the process was more complex, she appreciated the opportunity to apply as an entrepreneur.

For Immigration Attorneys

Legal professionals generally support the beneficiary-centric process for reducing fraud but warn that the increased scrutiny may deter some legitimate applicants. They advise clients to pay close attention to the new specialty occupation definitions and to prepare thorough documentation.

Concerns and Criticisms

While many stakeholders welcome the reforms, some advocacy groups worry that the new rules could make it harder for smaller employers and startups to participate. The increased fees and documentation requirements may be manageable for large tech companies but could pose barriers for nonprofits and small businesses.

There is also concern that the drop in total registrations could signal that the process is becoming too complex or intimidating for some applicants, especially those without access to legal support.

Looking Ahead: What’s Next for the H-1B Program?

• Second Lottery Decision: USCIS will announce in July 2025 if a second lottery is needed to fill the FY 2026 cap. If not enough petitions are filed by June 30, additional selections may be made from the existing pool of registrants.
• Modernization Rule Implementation: All H-1B petitions filed on or after January 17, 2025, must comply with the new rules and use the updated Form I-129.
• Continued Focus on Integrity: USCIS is expected to maintain strict enforcement and compliance checks, with ongoing investigations and possible petition denials or revocations for non-compliance.

Historical Context: Why These Changes Matter

The H-1B program has long been a cornerstone of the U.S. 🇺🇸 strategy to attract global talent, especially in technology, engineering, and healthcare. However, the system has faced criticism for loopholes that allowed multiple registrations for the same person, leading to perceived abuse and inflated numbers.

The beneficiary-centric selection process, introduced in FY 2025, was a direct response to these concerns. By ensuring each person only gets one entry, USCIS aims to make the lottery fairer and more transparent. The modernization rule builds on this foundation, aiming to balance access for skilled workers with stronger oversight and compliance.

Summary Table: FY 2026 H-1B Cap Season Key Statistics

Practical Guidance: What Should You Do Now?

• Employers: Review the new specialty occupation requirements and prepare detailed job descriptions. Budget for higher fees and ensure you use the correct version of Form I-129 for petitions filed on or after January 17, 2025.
• Applicants: Work closely with your employer and, if possible, an immigration attorney to gather all required documentation. Stay informed about deadlines and watch for updates on a possible second lottery.
• Startups and Entrepreneurs: Take advantage of the new eligibility provisions, but be ready to provide thorough evidence of your qualifications and your company’s legitimacy.
• All Stakeholders: For the most current updates, always consult the official USCIS H-1B Cap Season page and the Federal Register.

The FY 2026 H-1B cap season marks a turning point for skilled immigration to the United States 🇺🇸. With fewer registrations, a higher selection rate, and sweeping regulatory changes on the horizon, both employers and foreign workers must adapt to a new era of compliance, transparency, and opportunity. As always, staying informed and prepared is the best way to succeed in the evolving world of U.S. immigration.

For more detailed analysis and ongoing updates, VisaVerge.com reports that monitoring official USCIS announcements and consulting with qualified immigration professionals remain essential steps for anyone involved in the H-1B process.

Learn Today

USCIS → U.S. agency managing immigration benefits, including visa petitions and adjudications.
H-1B Cap → Annual limit of 85,000 H-1B visas, including regular and advanced degree allocations.
Beneficiary-Centric Selection → Lottery system allowing only one registration per individual to reduce fraud.
Form I-129 → Primary USCIS petition form for requesting H-1B visa approval.
Cap-Gap → Protection allowing F-1 students to work during transition to H-1B status.

This Article in a Nutshell

USCIS reports fewer H-1B registrations but increased selection rates for FY 2026. New reforms enhance fairness and strengthen eligibility rules, benefiting skilled workers and employers. Major regulatory changes start January 2025, impacting petitions, entrepreneurs, and compliance. Employers should prepare for updated requirements and fees to navigate this evolving immigration landscape successfully.
— By VisaVerge.com

Read more:

• H-1B visa demand still strong as USCIS gets 344K registrations for 85K quota
• H-1B fraud crackdown linked to sharp drop in visa registrations
• USCIS selects lowest number of H-1B visa registrations since 2021
• H1B FY 2025 Second Round: 14,534 H1B Registrations Selected and Informed
• USCIS Announces Second H-1B Lottery Selection for FY 2025 Registrations