How does the H-1B cap lottery work in 2026?

Q: How does the H-1B cap lottery work in 2026?

USCIS runs a beneficiary-centric electronic registration in March, selects 85,000 beneficiaries (65,000 regular cap + 20,000 U.S. master's cap) for FY 2027 filings, and notifies selected employers within days.

The H-1B specialty-occupation visa under INA § 101(a)(15)(H)(i)(b) is statutorily capped at 65,000 visas per fiscal year (the "regular cap") plus 20,000 visas reserved for beneficiaries with a U.S. master's degree or higher (the "advanced-degree cap"). Demand far exceeds supply — recent years have seen 400,000+ registrations for the 85,000 slots — so USCIS conducts a lottery.

The 2024 beneficiary-centric reform

Beginning with FY 2025 registrations, USCIS shifted to a beneficiary-centric selection model under the 2024 H-1B Modernization Final Rule. Each unique beneficiary now has the same odds of selection regardless of how many employers register them. The pre-2024 model — where multiple registrations for the same person multiplied lottery odds — was the engine of widespread fraud (shell companies, ring filings, etc.) and is now closed.

The 2026 timeline (for FY 2027 cap)

Early March 2026 — USCIS opens the electronic registration window.
Mid-March 2026 — Registration closes.
End of March 2026 — USCIS runs the lottery and notifies selected employers.
April 1, 2026 — H-1B cap-subject petition filing window opens.
June 30, 2026 — Filing window closes for first-round selectees.
October 1, 2026 — Earliest H-1B start date for FY 2027 selectees.

Who is exempt from the cap

Cap-exempt employers under INA § 214(g)(5) — institutions of higher education and their affiliated nonprofit research organizations, nonprofit research organizations, governmental research organizations. Petitions can be filed any time of year, no lottery.
Returning H-1Bs — beneficiaries who held cap-subject H-1B status in the prior 6 years and have not used the full 6-year period are not subject to the cap when refiled.
Chile and Singapore Free Trade Act visas (H-1B1) and the Australian E-3 have separate, smaller caps that rarely fill.

Cap-gap protection for F-1 students

An F-1 student with valid OPT employment authorization whose H-1B cap-subject petition is timely filed and pending or approved on April 1 receives automatic cap-gap extension of F-1 status and work authorization through September 30 under 8 C.F.R. § 214.2(f)(5)(vi). Filing on April 1 — not later in the window — preserves the maximum cap-gap protection.

Backup pathways for unselected beneficiaries

Selection is not the only path. Cap-exempt employment with a research university or affiliated nonprofit, O-1 for those with extraordinary ability, L-1 for intracompany transferees, E-1/E-2 for treaty traders/investors, and TN for Canadian and Mexican professionals all exist as alternatives. We routinely run parallel filings for high-value candidates so the H-1B lottery is not a single point of failure.

How we handle this

For employer clients we begin H-1B planning in November-December for the March registration window: identify cap-subject candidates, gather degree evaluations, prepare draft Labor Condition Applications, and pre-build the petition packets so April 1 filing is mechanical, not scrambling. For unselected beneficiaries, we present the alternative-status options before the lottery results land, so the post-lottery conversation is about execution, not surprise.