The H-1B cap season is the annual process through which U.S. employers compete for a limited number of new H-1B specialty occupation visas. Each fiscal year, USCIS makes 85,000 cap-subject H-1B slots available: 65,000 under the regular cap and 20,000 reserved for beneficiaries with a U.S. master's degree or higher. For FY2026, a major shift in how USCIS runs the lottery produced the highest selection rate in years at approximately 35.3%, while new fees and rule changes fundamentally altered the cost and compliance landscape for sponsoring employers. This guide breaks down official FY2026 registration data, selection outcomes, the complete fee structure, key rule changes, and what employers and employees may want to know at every stage of the process.
The FY2026 cap season was the second year under the beneficiary-centric selection process, and the data confirms that USCIS's anti-fraud reforms are functioning as intended. Understanding the numbers helps employers benchmark their odds and plan workforce strategies for future cap seasons.
Before FY2025, USCIS ran a registration-centric lottery in which each employer-beneficiary pairing received its own entry. A single worker registered by five employers received five chances in the lottery. This enabled staffing firms and related entities to submit hundreds of duplicate registrations for the same individual, inflating total registration volume to 780,884 in FY2024 (of which 758,994 were eligible) without increasing the number of actual workers seeking H-1B status.
Starting with FY2025 and continuing into FY2026, USCIS switched to selecting by unique beneficiary. Each worker receives exactly one chance in the lottery regardless of how many employers register them. Registrants must provide valid passport or travel document information for each beneficiary, enabling USCIS to deduplicate entries. Each registrant must also attest under penalty of perjury that they have not coordinated with other registrants to inflate a beneficiary's selection chances.
The results have been dramatic. FY2026 eligible registrations fell to 343,981, an approximately 54.7% decline from FY2024's 758,994 eligible registrations and a 26.9% drop from FY2025's 470,342. The average registrations-per-beneficiary ratio hit 1.01 for FY2026, meaning virtually every registration represented a unique individual. According to Alma's analysis of FY2026 H-1B statistics, USCIS explicitly credited the beneficiary-centric process for reducing gaming attempts.
Note: If a beneficiary with multiple legitimate job offers is selected, all registering employers receive selection notices. The worker then chooses which employer to proceed with. Multiple legitimate registrations are permitted; coordinated fraud is not.
What employers and employees may find relevant: The era of gaming the lottery through duplicate registrations is over. Employers no longer face artificially inflated pools. The trade-off is that each beneficiary gets exactly one shot per fiscal year, making the quality of each registration more important than volume.
USCIS selected approximately 118,660 unique beneficiaries from 343,981 eligible registrations in the initial selection completed by March 31, 2025. This produced a selection rate of roughly 35.3%, the most favorable odds since electronic registration began in FY2021.
USCIS selects more beneficiaries than the 85,000 statutory cap because not all selected registrants ultimately file petitions. The FY2026 selection of approximately 118,660 implies USCIS anticipated a filing rate of roughly 72% among selected beneficiaries, though this is a derived estimate and not an official USCIS figure. USCIS did not announce any second or third lottery round for FY2026 (unlike FY2024 and FY2025, which both required additional rounds), suggesting the initial selection proved sufficient. USCIS confirmed it received enough petitions to reach both the regular and master's caps.
Year-over-year selection data:
FY2023 (Registration-centric): 483,927 total registrations; approximately 127,600 initial selections; no additional rounds; approximately 26% selection rate per registration.
FY2024 (Registration-centric): 780,884 total registrations (758,994 eligible); approximately 110,791 initial selections; approximately 77,609 second-round selections; approximately 24% selection rate per registration.
FY2025 (Beneficiary-centric): 470,342 eligible registrations; 114,017 initial selections; 13,607 second-round selections; approximately 29% selection rate per beneficiary.
FY2026 (Beneficiary-centric): 343,981 eligible registrations; approximately 118,660 initial selections; no additional rounds announced; approximately 35.3% selection rate per beneficiary.
What this means for employers: A 35% selection rate means roughly one in three registered beneficiaries was selected. While still a lottery, these odds represent a meaningful improvement over FY2024's approximately 24% rate. For companies registering multiple candidates, the higher rate translates to a somewhat more predictable workforce planning outcome. Employers who registered 10 beneficiaries could reasonably expect 3 to 4 selections, compared to 2 to 3 under prior years' odds.
The FY2026 registration period ran from noon ET March 7 to noon ET March 24, 2025, with a $215 registration fee per beneficiary (up from $10 in prior years). USCIS reported approximately 57,600 unique employers submitted registrations, compared to roughly 52,700 for FY2025.
What employers needed for registration:
There is no advantage to submitting registrations on the first day of the window. USCIS conducts the lottery after the registration period closes, and all valid registrations submitted during the window receive equal consideration.
The complete H-1B cap season spans roughly 7 months from initial preparation through the earliest possible employment start date. Missing a single deadline can delay a hire by an entire year, so employers and employees benefit from staying aligned at every stage.
Before the registration window opens, employers typically identify which positions qualify as specialty occupations and which prospective or current workers they intend to sponsor. The H-1B Modernization Rule tightened the specialty occupation definition, so employers may wish to confirm that each position requires a bachelor's degree or higher in a specific specialty directly related to the job duties.
Typical employer tasks during this phase:
Alma's H-1B visa guide covers the full employer preparation checklist, including occupation-specific guidance for roles in technology, healthcare, finance, and engineering.
During the registration window, employers (or their authorized representatives) submit electronic registrations through the USCIS online system. Each registration includes one beneficiary's basic identifying information and the $215 fee. No supporting documentation (degrees, LCAs, job descriptions) is required at this stage.
After the window closes, USCIS runs the beneficiary-centric lottery and updates each registration's status to one of the following: "Selected," "Not Selected," "Denied," or "Invalidated - Failed Payment." Notifications were sent by March 31, 2025 for FY2026.
Selected employers have at least 90 days from the date of the selection notice to file the Form I-129 petition with USCIS. Before filing, employers must obtain a certified Labor Condition Application (LCA) from the Department of Labor through the FLAG system, which typically takes 7 working days.
Typical filing steps for employers:
The earliest possible employment start date is October 1, 2025 for FY2026 cap beneficiaries. Employees already in the U.S. on valid status (such as F-1 OPT or another nonimmigrant visa) can benefit from cap-gap protections. The H-1B Modernization Rule extended cap-gap protections for F-1 students from October 1 through April 1 of the following year, providing additional security against status gaps.
The FY2026 fee landscape changed substantially from prior years. The registration fee increased from $10 to $215, and a $100,000 Presidential Proclamation supplemental fee took effect on September 21, 2025 for certain new H-1B petitions. Understanding the full cost picture is critical for employer budgeting.
Government fees for a new FY2026 cap petition:
For a large employer filing an affected new cap petition with premium processing after September 21, 2025, total government fees alone exceed $106,000 (calculated as $780 + $600 + $500 + $1,500 + $2,805 + $100,000 = $106,185). Before the Presidential Proclamation fee, that same filing cost approximately $6,185 in government fees (excluding the $215 registration fee, which is paid at a separate stage). Employers may wish to consult with immigration counsel to determine the exact fee schedule applicable to their situation.
Alma charges $500 for lottery registration and $3,500 for a new cap petition, with RFE responses included at no additional charge on top of government fees.
DHS published the H-1B Modernization Final Rule as the most comprehensive update to H-1B regulations in years. The rule affects employers and employees at nearly every stage of the H-1B process.
Key provisions for employers and employees:
The beneficiary-centric selection process, implemented via a final rule published February 2, 2024 (effective March 4, 2024), remained in effect for FY2026. Its impact on registration volume and selection rates is detailed in the data sections above.
USCIS reported making law enforcement referrals for criminal prosecution related to registration fraud, reinforcing that the agency takes gaming the system seriously. Employers may wish to ensure they have a genuine need for each beneficiary they register and maintain records demonstrating a legitimate specialty occupation position.
On December 23, 2025, DHS announced a new rule changing H-1B selection to a wage-weighted system, with a final rule published December 29, 2025 in the Federal Register and effective February 27, 2026. This system applies to FY2027 registrations (spring 2026 filing season), not FY2026.
Under wage-weighted selection, registrations are assigned entries in the lottery based on the offered wage level relative to the applicable prevailing wage:
According to analysis, DHS estimates suggest projected selection odds under this system range from approximately 61% for Level IV down to roughly 15% for Level I. Independent modeling suggests actual Level I odds could be even lower. This creates a strong incentive for employers to offer competitive wages. As of March 2026, the wage-weighted rule is in effect and no court has enjoined it.
Employers planning for FY2027 may wish to evaluate whether current salary offers can be increased to reach higher wage levels. The difference between Level I and Level IV selection odds is approximately 4 to 1, making wage strategy a significant component of H-1B workforce planning going forward.
Before filing any H-1B petition, employers must obtain a certified Labor Condition Application from the Department of Labor. The LCA process centers on the prevailing wage, which is the minimum wage an employer must pay an H-1B worker for a specific occupation in a specific geographic area.
The DOL uses the Occupational Employment and Wage Statistics (OEWS) survey to set prevailing wages across four levels:
The current wage data year runs July 2025 through June 2026, published by DOL on July 1, 2025. Employers can look up applicable prevailing wages using the OFLC wage search tool. The September 2025 Presidential Proclamation directed DOL to initiate rulemaking to raise prevailing wage levels, but no Notice of Proposed Rulemaking had been published as of early March 2026, though immigration law firms have reported OMB clearance has been completed and publication may be imminent.
A formal Prevailing Wage Determination from DOL is encouraged but not required for H-1B LCA purposes. Employers may alternatively rely on independent authoritative wage surveys or other legitimate sources. However, given the upcoming wage-weighted selection system for FY2027, employers may wish to consider requesting formal PWDs to ensure their wage offers align with the correct level.
The DOL FLAG system processes LCAs within 7 working days under normal conditions. Processing was disrupted during the October 2025 government shutdown when DOL's Office of Foreign Labor Certification ceased operations. Congress failed to pass FY2026 appropriations by September 30, 2025, triggering a shutdown that began October 1, 2025. OFLC suspended public access to the FLAG system and all application processing. The FLAG system was fully restored on October 31, 2025, and OFLC issued guidance on November 5, 2025 providing a 33-day grace period for filings impacted by the disruption. LCA processing times returned to the standard 7-working-day window shortly after.
Prevailing Wage Determinations take longer. As of early 2026, DOL processing times for H-1B OEWS-based PWD requests ran approximately 3 to 5 months, with processing improving by March 2026. Employers who plan to request formal PWDs may wish to build this lead time into their H-1B planning calendar.
For a detailed walkthrough of the LCA filing process, see Alma's H-1B LCA filing timeline and process overview.
Not all H-1B petitions are subject to the annual cap and lottery. Certain employers can file H-1B petitions year-round without competing in cap season. Understanding cap exemptions can open alternative hiring pathways for employers and employees who are not selected in the lottery or who need to hire outside the cap season timeline.
Cap-exempt employers include:
Additionally, H-1B workers employed at (but not necessarily by) a qualifying institution may be exempt in certain situations. The H-1B Modernization Rule also codified exemptions for workers in Guam and the Commonwealth of the Northern Mariana Islands through December 31, 2029.
Cap-exempt filing is also available for:
If an employee was not selected in the FY2026 lottery, exploring whether any cap-exempt filing path applies may be worthwhile. Employees currently on OPT or other valid status may have time to pursue cap-exempt options or reenter the lottery for FY2027.
Read employer success stories and case studies from Alma's H-1B clients across technology, healthcare, finance, and other industries.
Traditional immigration law firms typically charge $3,000 to $7,000 per H-1B petition on top of government fees, with timelines stretching 4 to 8 weeks for petition preparation. Many firms assign junior associates or paralegals to initial drafting and bill hourly for RFE responses. Alma's technology-enabled immigration platform combines proprietary case management software with experienced attorneys to deliver faster turnaround and greater transparency.
Technology-driven efficiency: Alma's platform integrates with major HRIS systems including Workday, BambooHR, ADP, Gusto, and Rippling. Real-time case tracking dashboards give HR teams, employees, and attorneys shared visibility into every petition's status. Automated compliance monitoring sends proactive expiration alerts so employers never miss a renewal deadline.
Transparent flat-fee pricing: Alma charges $500 for lottery registration and $3,500 for a new cap or cap-exempt H-1B petition, with RFE responses included at no extra cost. No hourly billing surprises. Payment plans available for qualifying clients.
Attorney-led quality: Legal services are delivered through independent attorneys contracted via Alma Legal Services, P.C. Every petition undergoes multiple review rounds to reduce RFE risk.
Scalable for any employer size: Alma offers tiered plans for organizations of all sizes: standard plans for companies with up to 25 foreign nationals, growth plans for 26 to 250, and enterprise plans for 250+, with special startup pricing through partnerships with Y Combinator, Techstars, and Pear VC.
Beyond H-1B, Alma handles the full spectrum of employer immigration needs including O-1A and O-1B extraordinary ability visas, EB-2 NIW self-petitions, L-1 intracompany transfers, TN visas, and employment-based green cards.
Get started with Alma to discuss your H-1B strategy with an experienced immigration attorney.
The FY2026 selection rate was approximately 35.3%, based on roughly 118,660 beneficiaries selected from 343,981 eligible registrations. This was the highest rate since electronic registration began, driven by the beneficiary-centric lottery system that eliminated duplicate registrations. Under the prior registration-centric system, FY2024 saw rates as low as 24% per registration. USCIS completed the initial selection by March 31, 2025, and no additional lottery rounds were announced for FY2026.
Total government fees vary by employer size, filing date, and petition type. For a large employer (26+ employees) filing an affected new cap petition with premium processing after September 21, 2025, total government fees exceed $106,000 due to the $100,000 Presidential Proclamation supplemental fee. This fee applies to certain new H-1B petitions (primarily for beneficiaries outside the U.S.) and does not apply to change-of-status petitions, extensions, or amendments. Before this fee, the same filing cost approximately $6,185 in government fees. Small employers and qualifying nonprofits pay reduced rates for certain fee components. Check the USCIS I-129 fee page for the most current schedule. Alma's legal fees are $500 for registration and $3,500 for petition filing, separate from government fees.
Wage-weighted selection is a new H-1B lottery system announced by DHS on December 23, 2025, with a final rule published in the Federal Register on December 29, 2025 and effective February 27, 2026 for FY2027 registrations in spring 2026. Under this system, registrations offering higher wages receive more entries in the lottery: Level IV wages get 4 entries, Level III gets 3, Level II gets 2, and Level I gets 1. This did not apply to FY2026, which used a flat one-entry-per-beneficiary system. Employers may wish to evaluate their salary offerings against prevailing wage levels before FY2027 registration opens. Alma provides a detailed breakdown of how the wage level rule affects lottery odds.
If a beneficiary was not selected in the FY2026 lottery, several pathways may be available. First, the position may qualify for a cap-exempt filing (at qualifying educational or research institutions). Second, the employee may qualify for alternative visa categories such as O-1A for extraordinary ability, L-1 for intracompany transfers, or TN for Canadian and Mexican nationals. Third, if the employee holds F-1 OPT or STEM OPT, they may have additional time to reenter the lottery for FY2027. Fourth, employees with specialized qualifications may qualify for EB-2 NIW as an employer-independent green card pathway. Consulting with immigration counsel to evaluate all available options may be beneficial.
After selection, the petition preparation and filing process typically takes 4 to 8 weeks including LCA certification (7 working days) and document compilation. Once filed, USCIS processing times are uniform and can be checked at the USCIS processing times tool. With premium processing ($2,805, or $2,965 after March 1, 2026), USCIS provides a guaranteed response within 15 business days. Without premium processing, standard processing times vary and are updated regularly on the USCIS website. If USCIS issues a Request for Evidence (RFE), beneficiaries typically have 87 days to respond (84 days plus 3 days for mailing), after which a new 15-business-day premium processing clock starts if premium processing was elected. The earliest employment start date for FY2026 cap beneficiaries is October 1, 2025.
