H-1B visa 2026 cap reached; Entries decline 27% under new USCIS rules

Business Standard

5 days ago

The US Citizenship and Immigration Services (USCIS) has officially closed the H-1B visa lottery for fiscal year 2026, saying it has received enough petitions to fill both the 65,000 regular cap and the additional 20,000 visas reserved for candidates with US master's degrees.
The announcement, made on Friday, confirms that the selection process for the annual H-1B lottery is complete. This visa category allows US employers to hire foreign professionals in specialised roles requiring at least a bachelor's degree or equivalent, and it remains a popular route for Indian tech workers.
In its latest statement, USCIS said it would continue to accept petitions that are exempt from the cap. 'Petitions filed for current H-1B workers who have been counted previously against the cap, and who still retain their cap number, are exempt from the FY 2026 H-1B cap,' the agency said.
What this means for employers
Now that the cap has been reached, no new H-1B cap-subject petitions will be accepted for FY2026. However, employers may still file petitions for the following:
Extensions for current H-1B workers
Changes to employment terms
Employer transfers
Concurrent employment requests
These provisions remain open for individuals who have already been counted against a previous year's cap.
Fewer registrations, tighter system
This year saw a drop in H-1B registrations, following changes introduced by USCIS to restrict duplicate filings. For FY2026, the agency said it received 343,981 eligible registrations, down from 470,342 in FY2025 — a 26.9 per cent decline. In contrast, FY2024 had seen a peak of over 780,000.
Of the 2026 pool, 7,828 were beneficiaries with multiple eligible registrations. But only 120,141 were selected.
'Overall, we saw an average of 1.01 registrations per beneficiary this year for FY 2026, compared to 1.06 for FY 2025,' USCIS said. 'This means that, on average, each beneficiary only had approximately one registration submitted on their behalf.'
The number of employers remained stable at around 57,600.
One candidate, one chance
The drop in filings comes after USCIS introduced a new beneficiary-centric selection process for FY2026. Under the revised system, each candidate could only be considered once in the lottery, even if multiple employers submitted registrations for them.
'The decline in H-1B visa registrations this year doesn't necessarily reflect a lack of appetite — it's more about a correction in the system,' Varun Singh, managing director of XIPHIAS Immigration told Business Standard. 'Last year, the unusually high number of registrations raised concerns about misuse — with multiple applications being filed for the same candidate to game the lottery.'
He said the updated system now offers 'a more accurate picture of genuine demand.'
Costlier and tougher for firms
The new lottery process is not the only factor affecting applications. Rising costs and a stricter immigration environment have also contributed to the fall in numbers.
In January, USCIS increased the H-1B registration fee from $10 to $215. 'This fee hike is not a small jump, especially for startups and smaller firms,' Mamta Shekhawat, founder of Gradding.com told Business Standard. 'Many are now more selective, only filing for niche or project-critical roles.'
Policy changes such as the revival of the Catch-and-Revoke rule, which voids visas of individuals found to have violated US law even once, have added to employer caution.
Tech layoffs add pressure
Layoffs across the tech sector have also affected H-1B filings. Between 2024 and 2025, over 260,000 tech jobs were cut globally. As of May 2025, more than 52,000 workers had been impacted across 123 companies.
According to Bloomberg, April alone saw 23,468 employees laid off by 19 companies — up sharply from 8,834 layoffs in March.
Intel said it would cut 20 per cent of its workforce, while Meta let go of nearly 100 employees. Google laid off hundreds in its platforms and devices division. Indian tech firms were affected too, with Gupshup laying off 200 staff and Cars24 also announcing job cuts.
Despite the drop in registrations, demand continues to exceed availability. For FY2026, more than 343,000 eligible registrations were filed for only 85,000 slots.
'The US is still a top destination for Indian talent,' said Singh. 'What's changing is the intent to bring more transparency and fairness into the H-1B process — which in the long term, actually helps both employers and employees.'