The H-1B cap season lottery determines which employers can hire foreign specialty occupation workers each fiscal year. With only 85,000 cap-subject visas available annually (65,000 regular cap plus 20,000 for U.S. advanced degree holders), the lottery has become the single biggest bottleneck in employer-sponsored immigration. This guide covers the FY2026 H-1B lottery odds, including USCIS selection data, registration trends, filing costs, and the upcoming FY2027 season where a new wage-weighted selection system replaces the random draw.
The FY2026 H-1B cap season (registration period March 7 to 24, 2025) produced the cleanest lottery data since USCIS introduced electronic registration. Anti-fraud reforms dramatically reduced system abuse and improved odds for legitimate employers.
Total registrations fell to 358,737, with 343,981 eligible after USCIS screening. This represents a 26.9% decline from FY2025's 470,342 eligible registrations and a 54.7% drop from FY2024's record 758,994. The most telling metric: average registrations per beneficiary hit 1.01, meaning virtually every beneficiary had just one employer filing on their behalf.
USCIS selected 120,141 registrations representing 118,660 unique beneficiaries from approximately 336,153 eligible unique beneficiaries, yielding a per-beneficiary selection rate of roughly 35.3%. The per-registration selection rate was approximately 34.9%. About 57,600 unique employers participated. No second lottery round was needed, as USCIS confirmed after the June 30, 2025 filing deadline that enough petitions were received to meet the 85,000 annual quota.
USCIS over-selects beyond the 85,000 cap to account for non-filing, denials, and withdrawals. The 120,141 selections imply an expected attrition rate of roughly 29% between selection and final approval.
The three-year trend tells a clear reform story. FY2024 was the last year of employer-centric selection and saw massive abuse, with 408,891 registrations (53.9%) coming from beneficiaries with multiple filings. FY2025 introduced beneficiary-centric selection, immediately cutting registrations by 38%. FY2026 saw a further 27% decline as the $215 registration fee added a financial deterrent against frivolous filings.
FY2024: 758,994 eligible registrations, 188,400 selections, ~24.8% per-registration selection rate, 2 rounds needed, 53.9% duplicate registrations
FY2025: 470,342 eligible registrations, 135,137 selections, ~28.7% per-registration selection rate, 2 rounds needed, 10.1% duplicate registrations
FY2026: 343,981 eligible registrations, 120,141 selections, ~35.3% per-beneficiary selection rate (~34.9% per-registration), 1 round needed, 2.3% duplicate registrations
The six-year arc of H-1B lottery statistics reveals a system that nearly collapsed under gaming before reforms restored functionality. Understanding these trends helps employers and employees set realistic expectations.
FY2021 (electronic registration launched): 269,424 eligible registrations, 124,415 selections, 46.2% selection rate, 2 rounds
FY2022 (multiple registrations growing): 301,447 eligible registrations, 131,924 selections, 43.8% selection rate, 3 rounds
FY2023 (gaming accelerates): 474,421 eligible registrations, 127,600 selections, 26.9% selection rate, 1 round
FY2024 (peak fraud year): 758,994 eligible registrations, 188,400 selections, 24.8% selection rate, 2 rounds
FY2025 (beneficiary-centric begins): 470,342 eligible registrations, 135,137 selections, 28.7% selection rate, 2 rounds
FY2026 ($215 fee takes effect): 343,981 eligible registrations, 120,141 selections, 34.9% per-registration selection rate (35.3% per-beneficiary), 1 round
The selection rate bottomed out at 24.8% in FY2024, when shell companies and coordinated registration schemes flooded the system. The beneficiary-centric reform effectively eliminated this advantage: even if ten employers register the same person, that person gets exactly one lottery entry. By FY2026, duplicate registrations had fallen to just 7,828 out of 343,981 eligible (2.3%), compared to 53.9% two years earlier.
Read: H-1B Lottery Statistics for a deeper analysis of selection patterns and what they mean for upcoming filings.
The annual H-1B cap comprises two pools: 65,000 visas under the regular cap and 20,000 reserved for beneficiaries holding a U.S. master's degree or higher (the "advanced degree exemption"). Together, these 85,000 slots represent the cap-subject positions available each fiscal year. Certain employers are exempt from the cap entirely (more on that below).
Since FY2021, employers submit electronic registrations through USCIS organizational accounts during a March registration window (typically 2 to 3 weeks). Each registration requires the beneficiary's name, date of birth, passport or travel document number, country of birth, citizenship, and whether they qualify for the advanced degree exemption. The employer pays a $215 non-refundable fee per registration.
The lottery runs in two phases. First, USCIS randomly selects beneficiaries from the entire pool for the 65,000 regular cap, with advanced-degree holders included in this draw. Second, from among the unselected advanced-degree beneficiaries, USCIS randomly selects for the 20,000 master's cap. This gives U.S. master's degree holders two chances at selection.
Under the beneficiary-centric system, each unique beneficiary receives exactly one entry in the lottery regardless of how many employers register them. If a beneficiary is selected, all employers who submitted registrations for that person receive notification and may file H-1B petitions. This replaced the prior employer-centric model where each registration was an independent lottery ticket.
For employers: Registering an employee through multiple related companies no longer improves odds. The same employer may submit only one registration per beneficiary per fiscal year. Submitting more than one results in all registrations from that employer for that beneficiary being invalidated. USCIS enforces this through attestations signed under penalty of perjury, and coordinated schemes can trigger denial, revocation, and referral to federal law enforcement.
For employees: A worker registered by multiple legitimate employers (e.g., they received offers from three different companies) still gets just one lottery entry. If selected, the employee can choose which employer to proceed with, since all registering employers receive notification.
Not all H-1B positions are subject to the annual cap. The following employer types can file H-1B petitions at any time, year-round, without going through the lottery:
Cap-exempt positions are particularly valuable because the employee does not count against the 85,000 annual limit. If the employee later moves to a cap-subject employer, they would typically need to go through the lottery at that point (unless they were previously counted against the cap within the past 6 years).
February 5, 2025: USCIS announces FY2026 cap season details
March 7, 2025, noon ET: Registration window opens
March 24, 2025, noon ET: Registration window closes
By March 31, 2025: Selection notifications sent
April 1, 2025: Filing window opens for selected registrations
June 30, 2025: Filing window closes (extended to 7:30 PM EDT on July 1 for online filings only, due to platform technical issues)
October 1, 2025: Earliest H-1B start date for FY2026
Selected employers had a 90-day window to file the complete I-129 petition. Premium processing is available for all H-1B petitions at a cost of $2,805, with a guaranteed response within 15 business days.
If not selected, the registration status remains "Submitted" (not "Not Selected") because the beneficiary stays eligible for subsequent rounds if USCIS determines additional selections are needed. For FY2026, no second round was necessary. Unselected registrations do not carry forward to the next fiscal year.
Looking ahead to FY2027: The registration window runs March 4 to 19, 2026. Two major changes take effect: the wage-weighted lottery and the continued application of the $100,000 supplemental fee for petitions requiring consular processing. Employers must now provide SOC codes and wage level information at registration time.
H-1B costs have increased substantially in recent years. The total expense varies by employer size, petition type, and whether the beneficiary requires consular processing.
Per the USCIS fee schedule, every cap-subject H-1B filing requires:
Total mandatory fees for a large employer come to approximately $3,595, for small employers approximately $2,225, and for qualifying nonprofits approximately $1,175.
Attorney fees typically range from $2,500 to $5,000 for a new H-1B petition.
For a large employer filing a new H-1B with consular processing and premium processing, total costs (including estimated attorney fees) can now exceed $107,000. For change-of-status petitions (e.g., F-1 to H-1B), total government fees remain in the $6,400 to $7,400 range.
The $100,000 supplemental fee creates a strong financial incentive toward hiring beneficiaries already in the U.S. on valid status (F-1 OPT, L-1, O-1) and filing change-of-status petitions rather than consular processing.
Two major final rules published in 2024 represent the most significant H-1B overhaul in decades. Both took effect before the current administration took office, meaning they require formal notice-and-comment rulemaking to rescind.
This rule introduced beneficiary-centric selection, anchoring each lottery entry to a unique passport number rather than to individual employer registrations. It also authorized USCIS to deny or revoke petitions based on false attestations and codified enhanced integrity measures.
The second, broader rule enacted changes affecting day-to-day employer compliance:
H-1B denial rates for initial petitions dropped from a peak of 24% in FY2018 to just 2.5% in FY2024 and 2.8% in FY2025, according to USCIS data. RFE rates have also declined substantially: the overall RFE rate fell from approximately 38 to 40% during FY2018 to FY2019 (with rates exceeding 60% for certain petition subsets such as initial employment and IT staffing) down to roughly 8% in FY2024. The approval rate after receiving an RFE was approximately 85% in FY2022, though more recent FY2023 data indicates a rate closer to 80%.
Larger employers consistently see lower denial rates. For FY2024, employers filing 101+ initial petitions experienced a denial rate of approximately 1.0%, while employers filing just 1 to 2 petitions saw rates around 3.3 to 3.5%. Larger employers tend to benefit from experienced immigration counsel, established petition templates, and precedent-setting prior approvals. The codified deference policy in the January 2025 modernization rule further advantages employers with prior approval history.
The top RFE triggers include:
Common approaches to minimizing RFE risk include using detailed, specific job descriptions that link duties to a particular degree field, ensuring proper SOC code alignment between the LCA and petition, including expert opinion letters proactively, and verifying complete consistency across all documents before filing.
Read: Post-Lottery H-1B Timeline for a step-by-step breakdown of what happens after selection.
Even with improved FY2026 odds, roughly two-thirds of beneficiaries were not selected. H-1B cap season planning involves both lottery optimization and contingency planning.
Effective H-1B planning typically begins months before the March registration window opens. Key considerations include:
The most impactful lever starting FY2027 is offered wage level. Under the new wage-weighted lottery (effective February 27, 2026), Level IV positions receive 4 entries versus Level I's single entry. Level III receives 3 entries and Level II receives 2. Historical data shows roughly 55% of H-1B petitions are at Level II and 28% at Level I, meaning most petitions receive below-average weighting. Employers offering Level III or IV wages would see substantially improved selection probability.
Additional considerations include ensuring U.S. master's degree holders are properly flagged for the advanced degree exemption (providing two chances at selection) and exploring cap-exempt concurrent employment.
O-1 visa for extraordinary ability: No annual cap, filings accepted year-round, premium processing available with a 15-business-day timeline. Requires meeting 3 of 8 evidentiary criteria (published material about the beneficiary, awards, original contributions, high salary, among others). Best suited for accomplished professionals with demonstrable distinction in their field. See Alma's guide on switching from H-1B to O-1 for detailed requirements.
L-1 visa for intracompany transfers: Requires one year of employment with a related foreign entity within the preceding three years. No cap, no lottery, and no prevailing wage requirement. L-1A (managers/executives) provides up to 7 years and a direct EB-1C green card pathway. L-1B (specialized knowledge) provides up to 5 years. Compare L-1 vs. H-1B to determine which fits a given situation.
EB-2 NIW (National Interest Waiver): An immigrant visa pathway allowing self-petition without employer sponsorship. Evaluated under the three-prong Matter of Dhanasar test. Premium processing is available with a 45-business-day timeline. Unlike H-1B, NIW leads directly to permanent residency and does not require employer dependency.
Cap-exempt H-1B through universities, nonprofit research organizations, or government research entities. Filings are accepted year-round with no lottery required.
F-1 STEM OPT extension: Provides up to 36 months of total work authorization for STEM degree holders, serving as a bridge while awaiting future lottery attempts. Requires the employer to be enrolled in E-Verify.
TN visa for Canadian and Mexican nationals in designated professions. No cap, minimal cost, and Canadians can receive approval directly at the border.
A particularly notable approach: a beneficiary first obtains a cap-exempt H-1B through a qualifying institution (university, affiliated nonprofit, government research organization), then files a concurrent employment petition with a cap-subject private employer. Because the beneficiary has already been "counted" through the cap-exempt channel, the concurrent petition with the private employer bypasses the lottery entirely. The beneficiary must maintain the cap-exempt position, and USCIS scrutinizes whether the cap-exempt work genuinely furthers the institution's research or educational mission.
H-1B rules are shifting rapidly. Beyond the $100,000 supplemental fee, several developments are relevant to FY2027 and beyond.
The most significant structural change: a DHS final rule replaces random selection with a system where offered wage level determines the number of lottery entries each registration receives. Level IV wages earn 4 entries, Level III earns 3, Level II earns 2, and Level I earns 1.
For FY2027, employers must report the SOC code, wage level, and work location at registration. If a beneficiary has multiple registrations from different employers, the lowest wage level controls. According to DHS estimates in the final rule, projected FY2027 selection odds are approximately 61% for Level IV, 46% for Level III, 31% for Level II, and 15% for Level I positions.
Considerations for employers in light of the wage-weighted lottery include auditing current H-1B salary levels against prevailing wage data for each SOC code and work location, evaluating whether positions can be restructured to qualify for higher wage levels through more senior duties or expanded responsibilities, budgeting for higher compensation where Level III or IV wages are warranted, and identifying employees who may qualify for alternative visa categories if the weighted system reduces their selection probability.
Effective December 15, 2025, the State Department requires mandatory social media screening for all H-1B and H-4 visa applicants during consular processing. Applicants must set all social media profiles to public during the visa process. This is expected to increase consular processing times.
USCIS has also codified site visit authority, meaning employers may receive unannounced workplace inspections. Refusal or failure to cooperate may result in denial or revocation. Maintaining organized files demonstrating that H-1B workers are performing the specialty occupation duties described in their petitions is important for compliance.
The Department of Labor is developing a rule to raise prevailing wage levels, directed by the September 2025 presidential proclamation. As of early 2026, DOL has submitted a proposed rule to OMB for review, but it has not yet been published or finalized. If finalized, this would increase the salary thresholds for each wage level, compounding the impact of the wage-weighted lottery by making it more expensive to reach Levels III and IV. Employers may monitor DOL announcements for updates, as higher prevailing wages directly affect both H-1B salary obligations and weighted lottery odds.
The convergence of the wage-weighted lottery, the $100,000 consular processing fee, expanded vetting, and potential prevailing wage increases creates a fundamentally different H-1B environment than what existed even two years ago. Employers who rely heavily on H-1B for early-career talent at Level I or II wages will face significantly reduced selection rates starting FY2027. A multi-visa approach may be effective: using H-1B for senior, well-compensated positions where weighted odds favor selection, pursuing O-1 or L-1 for talent that qualifies, and considering EB-2 NIW or EB-2 PERM for long-term green card solutions that reduce dependence on temporary visa lotteries.
Multiple lawsuits challenge these policies. The $100,000 fee was upheld by the D.C. District Court in December 2025, but the Chamber of Commerce filed an appeal to the D.C. Circuit, which fast-tracked the case in January 2026 with oral arguments set for February 2026. Two additional lawsuits remain pending: Global Nurse Force v. Trump in the Northern District of California and State of California et al. v. Noem in the District of Massachusetts, the latter joined by 20 state attorneys general. Legal challenges to the wage-weighted lottery are also anticipated. Employers may wish to stay informed but plan around current rules rather than relying on judicial relief.
Read success stories from Alma's immigration clients including H-1B employers across technology, healthcare, and finance.
The H-1B process involves strict deadlines, detailed documentation, and significant financial commitment. Traditional law firms often charge $5,000 to $10,000+ per petition and take weeks to prepare filings. Alma's tech-enabled immigration platform simplifies the entire process for employers and employees.
Technology-enabled efficiency: Alma's platform automates document organization, deadline tracking, and form population. Employers manage multiple registrations and petitions from a single dashboard. Real-time collaboration between attorneys, employers, and beneficiaries eliminates email delays and version-control issues.
Legal expertise: Alma's attorneys maintain approval rates above 99% for qualified cases, with deep experience across H-1B registration strategy, specialty occupation analysis, and RFE response. The team publishes extensive H-1B cap statistics and visa data analysis to keep employers informed.
Transparent pricing: Flat-fee structure with no hidden costs or hourly billing surprises. Alma offers H-1B registration services and full legal filing at competitive rates, with RFE responses included in the base fee.
Multi-visa strategy: When H-1B odds are uncertain, Alma attorneys evaluate alternative pathways including O-1A, L-1, EB-2 NIW, and EB-2 PERM to build a full retention strategy for each employee.
Unlike traditional law firms that often leave employers waiting weeks for updates, Alma provides direct attorney communication and 24/7 portal visibility into case progress. Every client works with a dedicated attorney who knows their case and company.
Get started with Alma to prepare your H-1B strategy for FY2027 cap season.
The FY2026 H-1B lottery had a per-beneficiary selection rate of approximately 35.3%, based on USCIS data showing 118,660 selected unique beneficiaries from 336,153 eligible unique beneficiaries. This is the highest rate since FY2022 (43.8%) and a significant improvement over FY2024's 24.8% nadir. The improvement is almost entirely attributable to the beneficiary-centric selection reform and the increased $215 registration fee, which together eliminated most duplicate and fraudulent registrations.
Total mandatory government fees for a large employer (26+ employees) are approximately $3,595, and approximately $2,225 for small employers. Premium processing adds $2,805 (increasing to $2,965 effective March 1, 2026). Attorney fees typically range from $2,500 to $5,000. If the beneficiary requires consular processing for a new petition filed after September 21, 2025, the $100,000 supplemental fee applies, potentially pushing total costs above $107,000 including attorney fees. See the USCIS fee schedule for current amounts.
The registration status remains "Submitted" in case USCIS needs additional rounds. For FY2026, no second round was conducted. The registration does not carry forward to FY2027. Alternative visa options include: O-1 for extraordinary ability workers, L-1 for intracompany transferees, cap-exempt H-1B positions at universities or nonprofits, and F-1 STEM OPT extensions for eligible graduates. EB-2 NIW is also available as a green card pathway that does not depend on employer sponsorship.
Starting FY2027, the random lottery is replaced by a wage-weighted selection system. Level IV wage positions receive 4 lottery entries, Level III receives 3, Level II receives 2, and Level I receives 1. Since most H-1B petitions historically fall at Level I (28%) and Level II (55%), entry-level positions will face substantially lower selection probabilities while senior, higher-paid positions will see improved odds. Employers must provide SOC code and wage level data at the time of registration for FY2027.
Institutions of higher education, nonprofit entities related to or affiliated with institutions of higher education, nonprofit research organizations, and government research organizations are exempt from the annual cap. Cap-exempt employers can file H-1B petitions at any time without going through the lottery. Under the January 2025 modernization rule, the cap-exemption definition was broadened so that organizations qualify if research or education is a "fundamental activity" rather than their primary mission, opening cap-exempt filing to a wider range of nonprofit and government entities.
