FY2027 H-1B Lottery Kick Off

Here we are, ready to kick off the fiscal year 2027 (“FY2027”) H-1B cap. US Citizenship and Immigration Services (“USCIS”) announced the initial registration period for the FY2027 H-1B cap will begin at 12 Noon Eastern on March 4, 2026, and run through 12 Noon Eastern on March 19, 2026. During this registration period, prospective petitioners and representatives will be able to submit their H-1B registrations using online accounts and pay the required fee of $215 for each registration submitted on behalf of individual beneficiaries. The Service is maintaining its beneficiary-centric selection process launched for FY2025.

As before, registrants will be able to access their existing organizational accounts or create new accounts in the USCIS online system. The organizational account system allows multiple individuals within an organization, such as a company or other business entity, and their legal representatives to collaborate on and prepare H-1B registrations. 

Once the registration process is complete, USCIS will randomly select H-1B petitions for processing (i.e., through a lottery) and selection notifications will be sent to account holders. USCIS intends to notify prospective petitioners and representatives by March 31st. On April 1, 2025, USCIS will begin accepting online filing for H-1B cap petitions and associated Requests for Premium Processing for petitioners whose registrations have been selected. Petitioners will also have the option of filing a paper Form I-129 H-1B petition and any associated Form I-907 should they prefer.

This year there are a few modifications to the H-1B cap process, including the shift to a wage-weighted system and  imposing the new $100,000 fee for those selected to apply for the H-1B visa through consular processing. Early planning and a careful assessment of alternative visa options may help mitigate uncertainty and reduce reliance on the H-1B cap process under this new framework.

  • Lottery System Replaced by Wage-Based Selection

USCIS has implemented a weighted H-1B cap selection system beginning with the FY 2027 season. Rather than a random lottery, registrations will now be selected based on wage level, with priority given to higher-paid and higher-skilled beneficiaries. If registrations exceed the annual cap, USCIS will run a weighted selection among properly submitted unique beneficiaries. If registrations do not exceed the cap, all properly submitted registrations will be selected.

The weighting is tied to the Department of Labor’s prevailing wage framework, which assigns wage levels based on the nature, complexity and seniority of the job duties associated with the position offered, the required education, and the geographic location of employment. Rather than each registration receiving a single entry into the lottery, the number of entries, (four maximum)  will now depend on the wage level offered with those offered the most senior, highest paying roles in their category receiving four entries into the lottery and those offered more junior, lower paying roles, receiving one entry into the lottery.

  •  $100,000 H-1B Fee

Pursuant to President Trump’s Presidential Proclamation on September 19, 2025, Restriction on Entry of Certain Nonimmigrant Workers, certain new H-1B petitions  will be required to pay a $100,000 H-1B fee. The fee is triggered when the beneficiary is abroad without a valid H-1B visa or when the petition requests or results in consular processing. USCIS has confirmed that if a petition is filed requesting a change of status, extension of stay, or amendment, and that request is approved, the fee does not apply. The fee also is not applicable when an employer has obtained a national interest exception (NIE).   While this does not affect the electronic registration process itself, it may materially affect the cost and feasibility of proceeding with an H-1B filing after selection if the foreign national must travel internationally.

FREQUENTLY ASKED QUESTIONS ABOUT THE H-1B CAP

The following will provide background and guidance on some common questions surrounding the H-1B and the H-1B cap:

1. WHAT IS THE H-1B?

The H-1B is a nonimmigrant visa for foreign nationals who will be employed temporarily in a “specialty occupation,” or as fashion models of distinguished merit and ability. A specialty occupation is defined as one that requires a bachelor’s degree in a specific field, or the equivalent experience, in order to perform the duties of the position offered. For example, architects, graphic designers, accountants, lawyers, engineers, and computer programmers are all specialty occupations and, therefore, likely to be eligible for H-1B visas. H-1B petitions are granted for up to three years at a time, for a maximum of six years. H-1B visa holders may also be sponsored for permanent residence which could allow for an extension of the H-1B petition past the six years.   

Under the current law, there is an annual limit of 65,000 new H-1B’s. This is referred to as the “H-1B Cap.” There are an additional 20,000 visas available for current or prospective employees who possess an advanced degree earned at a US accredited educational institution. This is referred to as the “Master’s Cap.” New H-1B’s become available on October 1, which is the first day of the government’s fiscal year. USCIS will only start accepting petitions for a new H-1B six months prior to the beginning of their new fiscal year (i.e., April 1). 

2. TO WHOM DOES THE CAP APPLY?

The cap applies only to those individuals who have never had an H-1B visa or who have been outside the US for more than a year after having held H-1B status in the US.

3. CAP- GAP: WHAT IF THE F-1 OPT EXPIRES BETWEEN APRIL 1 AND BEFORE OCTOBER 1?

With respect to students on F-1 OPT, whose OPT expires after April 1 and before October 1, if the case is picked in the lottery after the registration period closes, as long as we file the H-1B prior to the expiration of the OPT, the foreign national's work authorization will be automatically extended until April 1 2027 by virtue of the H-1B filing. To ensure the foreign national does not fall out of status:

  • The foreign national must take the H1B receipt notice to his/her school to receive a new I-20 indicating the extension of the OPT. 

  • The foreign national MUST remain in the US between the expiration of the OPT and October 1st to have continued work authorization.  If he/she travels internationally during this time, he/she risks abandoning the change of status and may not be able to return to the US until September 21, 2026, if the case is approved by then. More significantly, if the foreign national leaves the US, the employer may be required to pay the $100,000 fee from the Presidential Proclamation.

  • If the student’s OPT expires before the employer has the receipt for filing the case,  he/she will have to stop working until a receipt notice for the H1B arrives indicating that they were selected in the lottery and the case was timely filed.  The student may only resume working once the receipt notice has been issued.

  • If the H-1B is not approved by April 1, 2027, the foreign national will have to stop working if their OPT has expired.

4. WHAT ABOUT J-1’s?

 J-1 visa holders do not get the same cap-gap extension as students on F-1 OPT.  In addition, the foreign national should be cautious about communicating with the J sponsoring company about any application since the foreign national should be intending to return to their home country at the end of their training.  

5. WHAT ABOUT SITE VISITS?

Remember also that the Immigration Service will continue to conduct random site visits on H-1B sponsors.  Therefore, with respect to H-1B petitions, we urge you:

  • to be vigilant with your record keeping, public access files, etc.;

  • to make sure that all H-1B fees are paid by the sponsor without seeking reimbursement from the foreign national; and

  • to withdraw petitions for foreign nationals whom you no longer employ.

6. WHEN CAN FOREIGN NATIONALS START WORKING IF SELECTED?

Historically, October 1st was the start date of H-1B petitions and foreign nationals could commence work with the sponsor on October 1st.  All H-1B petitions had to request an October 1 start date.  This was updated by the 2024 published final rule which allows a petitioner to request any start date of the fiscal year. However, the requested date may not exceed six months past the filing date of the petition.

7. WHAT ARE THE CHANCES OF YOUR CASE BEING SELECTED IN THE LOTTERY?

The chances of being selected depend on how many applications/registrations are received by USCIS, whether the foreign national has a US master’s degree, and the new selection system which prioritizes allocating visas to higher-skilled and higher-paid foreign nationals. Last year, FY2026, USCIS reported having selected 120,141 registrations from a total of 343,981 eligible registrations to fulfill the congressionally mandated 65,000 H-1B visa regular cap and the 20,000 H-1B visa U.S. advanced degree exemption.