This memo provides information related to the H-1B Cap season commencing with registration in March 2026 for new H-1Bs effective October 1, 2026 – i.e., Fiscal Year 2026 (“FY27”) filings. This memo is provided for informational and discussion purposes only. It does not act as a substitute for legal advice on an individual basis. 

Last updated: December 31, 2025.  

• Check back regularly! This memo will be promptly updated with any new information or changes confirmed by USCIS throughout the H-1B Cap season. 

Approximate read time: 25 minutes 

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Overview of H-1 Cap and Registration Process

The annual cap on the issuance of H-1B visas applies to all NEW H-1B filings where the sponsored employee has NOT previously been counted against the Cap and where the employer is not somehow Cap-exempt (some employers or employment situations permit Cap exemption). Since the demand for H-1B visas is so high, USCIS conducts an annual lottery to determine who will have the opportunity to file for H-1B status under the cap each year. Once an employee has been counted against the Cap, they can apply for and extend their H-1B status outside of the annual lottery process, until they have used their maximum allowance of six years in H-1B status (or longer, if they have reached a certain point in the green card process). 

There are essentially two H-1B Caps or quotas (i.e., statutory limits on how many new H-1Bs USCIS can be issued each year). The first is the standard Cap for regular H-1B filings (referred to as the “Regular Cap”) for individuals with a bachelor’s degree or equivalent that qualify for H-1B status. There are only 65,000 Regular Cap H-1B filings permitted per fiscal year, and of this number, 6,800 available spaces have been reserved for citizens of Chile and Singapore. The second Cap is technically a Cap exemption, but is limited in number and ultimately runs out each fiscal year, thus creating a separate Cap. The second cap is in reference to an additional 20,000 H-1Bs set aside for individuals who graduate from a U.S. master’s degree program (or higher-level education) that meets certain criteria (referred to as the “Master’s Cap”). 

USCIS implemented an electronic registration system for H-1B Cap selection in 2020. With the electronic registration system, employers or their authorized representatives can register potential H-1B employees online to be included in the annual lottery. The USCIS fee for cap registration is $215 USD for each potential worker. The H-1B Cap registration period for 2026 (FY27) has not yet been announced but will likely open in the first week of March and will remain open for a minimum of 14 calendar days. Once the registration period closes, USCIS will conduct a lottery to select the number of registrations needed to reach the H-1B numerical limit.  

USCIS will notify employers and legal representatives of the H-1B lottery results no later than March 31, 2026. Selected registrants will be eligible to file a cap-subject H-1B petition with USCIS as early as April 1, 2026, and no later than 90 days after selection, for a start date of October 1, 2026, or later. Only the registering employer(s) will be eligible to file an H-1B Cap petition for individuals selected in the lottery. 

Registrations not selected in the lottery will remain on reserve for the applicable fiscal year. If USCIS does not receive and approve enough H-1B petitions to fulfill the statutory quota from the initial lottery in March, it will run subsequent lotteries and select additional registrants from those on reserve until the annual cap is met. Registrations not selected in the initial lottery will be included automatically in any subsequent draws, if applicable. The number of draws needed to meet the annual cap varies from year to year. We provide a summary of H-1B lottery draws from prior years below for reference.  

Year	Number of Lottery Draws
2020 (FY 2021)	2  (March, August)
2021 (FY 2022)	3  (March, August, November)
2022 (FY 2023)	1  (March)
2023 (FY 2024)	2  (March, July)
2024 (FY 2025)	2  (March, July)
2025 (FY 2026)	1 (March)

 

Lottery System and Selection Rates:

In years past, the average chance of selection in the H-1B lottery was approximately 30%, which was generally equal across all beneficiaries. This will change for the 2026 (FY 2027) lottery based on a final rule published December 29, 2025, implementing a new selection method weighted based on the proffered wage for H-1B employment, giving higher paid beneficiaries a greater chance of selection.  

To facilitate the new weighted selection system, the lottery registration process will now require registrants to select the corresponding wage level based on the highest wage level that the beneficiary’s annual base salary for prospective H-1B employment would equal or exceed. Prevailing wages are based on the occupational classification and area of intended employment. Wage level data is published the Department of Labor (DOL) available at: https://flag.dol.gov/wage-data/wage-search.   

The table below shows the method for weighting registrations and the anticipated impact on an individual’s chance of selection depending on the corresponding wage level for registration purposes. 

Wage Level for Registration	Weighted Lottery Entry	Chance of Selection (DHS Estimate)
Wage Level 1	Entered once	15.29%
Wage Level 2	Entered twice	30.58%
Wage Level 3	Entered three times	45.87%
Wage Level 4	Entered four times	61.16%

 

Other relevant factors in weighted selection process: 

• Multiple Worksites: Wage levels for the occupation vary depending on the geographic area of employment. If the H-1B beneficiary will work in multiple locations, registration must be based on the lowest corresponding wage level across all applicable worksites that the proffered wage will equal or exceed.  

• Registration by Multiple Employers: The new rule maintains the beneficiary-centric registration system implemented in 2024 (FY 2025) which modified the lottery process to select registrants based on unique beneficiary, giving all beneficiaries the same chance of selection regardless of how many employers register them in the lottery. While the new, weighted selection method no longer provides an equal chance of selection across all beneficiaries, the beneficiary-centric process still applies – meaning each unique beneficiary will only be counted in the lottery once (weighted based on the corresponding wage level), regardless of how many employers submit registrations on their behalf. However, if the beneficiary is registered by multiple employers, their registration will be weighted based on the lowest wage level across all employers. If the beneficiary is selected in the lottery, each sponsoring employer will be notified and eligible to file an H-1B petition on their behalf.  

• Regular vs. Master’s Cap: The standard lottery system is a two-stage draw process for selecting the projected number of registrations needed to meet the annual cap on new H-1Bs which includes 65,000 H-1Bs under the standard quota (aka regular cap) and 20,000 available under the advanced degree exemption (aka master’s cap) reserved for beneficiaries holding a qualifying U.S. master’s degree or higher. USCIS first selects from a pool of all beneficiaries registered under both caps to meet the regular cap. Then, USCIS selects from the remaining beneficiaries requesting the advanced degree exemption to meet the master’s cap. This process, which will remain in place under the new rule, provides a slightly greater chance of selection for beneficiaries registered under the master’s cap; however, DHS did not factor this into its probability estimates under the weighted selection method listed above.  

Our Process and Anticipated Timeline:

Our goal is to make this process as simple and stress free as possible for everyone involved. To start, we ask employers to notify us of any H-1B cap registrants as soon as possible to ensure timely registration. We will evaluate each case to ensure it satisfies all H-1B criteria and gather any information or documentation needed to complete the registration and prepare the USCIS petition, if selected.  

The H-1B Cap is ultimately a two-step process. The following provides a general overview of each step and what you can expect working with our team. 

Step 1 – Lottery Registration: To complete the registration process, our team will take the following steps: 

• Gather all necessary information to evaluate the case and prepare the registration. 

• Assist employers in creating a proper USCIS Organizational Account as needed. 

• Draft registrations and provide step-by-step instructions for the employer to verify submissions on behalf of the company. 

• Ensure timely registration of all potential H-1B workers during the designated registration period (dates yet to be announced by USCIS). 

• USCIS conducts the initial lottery and confirms selections no later than March 31, 2026. 

• For those selected in the lottery, we will proceed to Step 2. 

• For those not selected in the initial lottery, we will discuss contingency plans as needed on a case-by-case basis. 

Step 2 – Filing of H-1B Petition: For beneficiaries selected in the lottery, we will take the following steps: 

• Our team will request any outstanding documents or additional information needed to prepare the actual H-1B petition when we notify you of the results and aim to file with USCIS as soon as possible. 

• We will have 90 days following the selection date to file the actual H-1B petition with USCIS. 

• Under regular USCIS processing, H-1B petitions typically take between 3-6 months to be adjudicated once filed. We expect Premium Processing Service to be an available option for H-1B Cap filings, which would provide a decision from USCIS within 15 business days of receipt. The USCIS fee for Premium Processing is $2,805. The decision to file under Regular or Premium Processing only applies to the filing of the actual H-1B petition with USCIS. 

• Approved H-1B Cap petitions will take effect on or after October 1, 2026.  

As described above, if the statutory caps are not met through the initial lottery, USCIS will conduct subsequent lotteries until the numerical limit for the fiscal year is reached. If subsequent lotteries take place, USCIS will select additional registrants who remain on reserve from the initial registration period. This process will be automatic, no further action will be required for registrants not selected initially to be considered for subsequent lotteries for this fiscal year. We will monitor the status of the H-1B Cap throughout the year and promptly notify clients if additional registrants are selected. 

Stay Informed:

This page will be updated with further detail and other relevant updates throughout the H-1B cap season – check back here to stay up to date on all things H-1B lottery! 

In addition to this central hub of information related to the H-1B cap, we provide a variety of other ways to stay informed on the latest updates in business immigration, including:  

• Webinars. We offer regular webinars featuring detailed insights and practical guidance on key updates and other trending issues, including multiple opportunities to learn more about the H-1B cap and contingency planning.  

• Podcasts. Tune in to Managing Partner David Brown’s podcast, “I’ll Call You From The Car” for 15-minute briefings on various immigration processes.  

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• Trending Topic Tracker. Our Trending Topics page is dedicated to monitoring new and potential changes in business immigration, updated frequently with the latest insights and information as things evolve to help employers and foreign nationals keep track of key issues and potential impacts.