(UNITED STATES) — U.S. Citizenship and Immigration Services announced the initial registration period for the fiscal year 2027 H-1B cap will open at noon Eastern on March 4, 2026, and run through noon Eastern on March 19, 2026, as Indian F-1 students in the United States report employers withdrawing H-1B sponsorship promises days before the window begins.
Indian students on F-1 visas said companies that earlier signaled they would sponsor their H-1B work visas are backing out at the last minute, leaving graduates working on Optional Practical Training and STEM OPT extensions scrambling for alternatives.
The pullbacks have hit students who rely on a narrow path from F-1 status to OPT work authorization and then to H-1B sponsorship for longer-term employment, and who can face steep immigration consequences if sponsorship evaporates after they have planned their lives around it.
USCIS set the FY 2027 timeline in an alert dated Jan. 30, 2026, posted as USCIS Alert, Jan. 30, 2026.
The timing matters because the H-1B registration window compresses employer decisions into a short period, and students said even a small delay in an employer’s internal approvals can push them into a corner just as the annual cap season begins.
Multiple student accounts described employers withdrawing sponsorship commitments shortly before the H-1B cap registration, a shift that can leave students with no backup immigration pathway when their OPT work authorization ends.
Many of the affected graduates are working under OPT or STEM OPT extensions, programs that allow temporary employment after graduation but still require a transition to an H-1B visa for long-term work authorization.
Policy changes this season have reshaped employer calculations, including a new selection method that DHS finalized and put into effect on February 27, 2026, replacing the random lottery with a “weighted selection process” that prioritizes registrations offering higher wages based on the Department of Labor’s four-level wage scale.
In a DHS statement dated Dec. 23, 2025, the agency said, “The rule is designed to increase the chance of selection for higher-paid, higher-skilled beneficiaries. to better protect the wages and job opportunities of American workers.”
Students and advisers said the wage-weighted approach changes how employers view entry-level roles, particularly for recent graduates whose offers often align with lower wage levels and now face a more difficult selection environment.
A separate policy jolt came from a Presidential Proclamation on September 19, 2025, which introduced a $100,000 fee for certain H-1B petitions as a condition of eligibility, a move that primarily targets “consular processing” for applicants outside the United States but has also disrupted employer planning.
The White House issued a clarification on Sept. 20, 2025, saying the fee is a one-time payment for new applicants and generally does not apply to domestic changes of status, such as F-1 to H-1B, yet the new cost structure still altered perceptions of risk and future expense for employers that hire internationally.
International students said the combined effect is that employers have become more cautious about H-1B sponsorship, with some reversing earlier assurances as registration approaches.
Experts also pointed to rising employer costs and compliance risks. Even when sponsoring candidates already inside the United States does not always involve extremely high visa processing expenses, companies have remained cautious amid changing immigration policies and regulatory uncertainty.
Recent court discussions highlighted that only about 70 companies have proceeded with costly H-1B hiring obligations tied to new policy frameworks, a figure cited as a sign of employer hesitation.
Students and advisers also cited a tougher immigration climate. International students transitioning from F-1 to H-1B status face increased scrutiny and longer waiting periods compared to previous years, with enforcement and vetting processes intensifying and employers becoming more risk-averse.
Economic conditions have added another layer, with tech layoffs, hiring freezes, and shifting workforce strategies influencing decisions to sponsor. Students said companies sometimes signal interest during recruitment but reconsider when budgets tighten or policy risks rise.
The pressure lands hardest on students whose legal status depends on continued employment and a smooth transition from student status into a longer-term work visa. When employers reverse sponsorship decisions late, students said they can lose the time needed to recruit elsewhere or prepare alternative plans.
Indian students are particularly exposed because India remains the largest source country for international students in the United States, with hundreds of thousands relying on the F-1 → OPT → H-1B pathway.
When sponsorship falls through, students said the consequences can cascade quickly. They may lose work authorization after OPT expires, face SEVIS termination risks if employment ends, and in some cases be forced to leave the United States within weeks.
Students also warned that long-term plans such as green card sponsorship can collapse if an employer withdraws support, and that even an approved trajectory can disappear overnight if an employer withdraws an H-1B petition.
Official guidance and adviser warnings have also focused attention on the SEVIS consequences that can follow an H-1B change-of-status effort. Reports flagged that if an H-1B “Change of Status” is approved but the employer later withdraws it before the October 1 start date, the student’s SEVIS record can “auto-complete,” effectively terminating F-1 status.
That sequence can leave students in a procedural limbo. Advisers said a Designated School Official cannot fix a SEVIS record termination linked to a withdrawal until USCIS issues a formal “withdrawal confirmation letter,” which can take weeks, leaving students “out of status” in the interim.
USCIS and DHS have posted information on the cap season and related rules online, including the USCIS H-1B cap season home and a DHS page on F-1 cap-gap policy, DHS Cap-Gap Extension Rules.
Policy changes have arrived alongside heightened vetting at U.S. consulates. Starting December 15, 2025, the State Department expanded mandatory social media vetting to all H-1B and F-1 applicants, and this resulted in thousands of visa interviews in India being rescheduled to as late as summer 2026, creating a “vetting backlog” that affects worker onboarding.
Even for students pursuing domestic change of status rather than consular processing, the broader atmosphere of delay and scrutiny has contributed to uncertainty, advisers said, especially when employers worry about timing and compliance.
Data from USCIS already show a drop in demand signals. For the previous FY 2026 season, USCIS reported a 26.9% reduction in total eligible registrations compared to FY 2025, with 343,981 versus 470,342.
Employer patterns have also shifted. Major Indian-based IT companies have largely disappeared from the top 25 rankings of new H-1B sponsors, and executives at firms like TCS and LTIMindtree said in late 2025 they do not plan to file for many new H-1B holders in 2026 due to the new fee structure and the wage-weighted system.
USCIS also raised premium processing costs. Effective March 1, 2026, the agency increased premium processing fees to reflect inflation, and for H-1B petitions (Form I-129) the fee is now significantly higher, adding to employer costs.
Students said they feel the effects even before a petition is filed. A job offer and a verbal assurance of H-1B sponsorship can vanish days before registration, forcing graduates to rapidly contact other employers, consult school officials, and reassess whether they can maintain lawful status if the sponsorship plan collapses.
For many Indian F-1 students, OPT and STEM OPT extensions buy time but not permanence. Students often treat employer-backed H-1B sponsorship as the bridge to longer-term status, and they said last-minute withdrawals put their SEVIS records, work authorization, and long-term plans at risk.
The uncertainty has also begun to reshape global student mobility. Reports cited declining Indian enrollment interest in the United States, driven by tighter visa scrutiny, limited interview availability, and unclear post-study work prospects.
Education consultants said students increasingly evaluate alternatives such as Canada, Germany, Australia, and European Union countries that offer clearer post-study work routes, especially when U.S. work authorization depends on employer decisions and shifting selection rules.
Advisers urged students to take practical steps before the March registration window opens. One recommendation was to secure written confirmation of sponsorship intent rather than relying on informal assurances that can be reversed as policies and budgets shift.
Students also said they are applying to multiple H-1B-cap employers in case one sponsor withdraws, and they are watching their OPT and STEM OPT extension compliance closely to maintain work authorization while seeking a longer-term option.
Some students have expanded their search to cap-exempt employers, including universities, nonprofits, and research institutions, where the H-1B cap does not apply and hiring timelines can differ from the March registration cycle.
Others have considered backup options such as graduate study extensions or global mobility roles, weighing whether they can shift to positions outside the United States if a domestic pathway closes.
DHS officials framed the wage-weighted approach as a deliberate reorientation of the program. The system’s stated goal of boosting selection odds for higher-wage registrations has sharpened a divide between mid-to-senior level roles and entry-level hiring, students and advisers said, narrowing the range of offers employers are willing to register.
The $100,000 offshore hire fee and the wage-weighted selection process have also encouraged employers to concentrate H-1B resources on higher-paid roles, students said, while prioritizing internal candidates or hires already earning higher wages.
For students nearing the end of OPT or relying on STEM OPT extensions to stay employed, the stakes are immediate. Indian F-1 students described a “sponsorship vacuum” as employers reconsider filing under new rules, reinforcing a warning they said they are hearing across campuses and recruiting channels: a job offer no longer guarantees sponsorship.
U.S. Employers Pull H-1B Sponsorships, Leaving F-1 Students on STEM OPT in Limbo
USCIS set the FY 2027 H-1B registration window for March 2026 amid reports of employers retracting sponsorship offers to Indian F-1 students. New wage-based selection criteria and increased fees have altered employer calculations, favoring higher-paid roles over entry-level positions. This creates significant uncertainty for graduates on OPT extensions, who face potential status termination and are increasingly considering alternative immigration destinations like Canada or Germany.
