The H-1B Cap Lottery FY 2027 is Complete: What Employers Should Do Next

US Citizenship and Immigration Services (USCIS) announced on March 31 that the initial FY 2027 H-1B round of selections has been completed.  Whether USCIS will run an additional lottery this year remains uncertain. USCIS ran only one lottery last year, while the agency ran a second lottery in each of the prior two years.

While USCIS has not yet announced the total number of H-1B cap registrations this year, it appears to be significantly lower than in the past few years.  Fragomen saw a selection rate of over 50% on average, with some employers seeing selection rates of 65% or higher.  In contrast, the government reported selection rates of only 35% in 2025 and 26% in 2024. 

What Is Behind the Lagging Demand?

Broader economic headwinds, including ongoing workforce reductions across multiple companies, particularly in the tech space, have reduced hiring activity. At the same time, USCIS introduced a new weighted lottery selection system this year that prioritized higher-salaried positions.  One consequence of the new system is that companies did not register beneficiaries who are assuming lower-salaried, entry-level positions at the same rate as in previous years.

Another factor is the widely publicized $100,000 fee for certain H-1B petitions, introduced in September 2025, which altered how companies approach the cap, with many registering far fewer cases than in prior years.

Post-Selection Steps for Employers

With initial lottery results finalized, what are the next steps for employers whose cases were selected?  To start, employers must file their cap petitions before the government’s June 30, 2026, deadline.  With heightened scrutiny on each petition, employers should avoid submitting petitions late in the filing window.  Several new risks have emerged that make preparing a sound H-1B petition more challenging than ever.

Effective April 1, USCIS mandated the use of a new form requiring employers to answer detailed questions about the minimum job requirements of the beneficiary’s position.  These questions must be answered with thoughtfulness and care. At the same time, the $100,000 fee remains in effect. If an employer files a case while the beneficiary is outside the US or the beneficiary travels outside the country while the case is pending, it will trigger the $100,000 fee. Adjudicatory trends suggest that USCIS is placing increased scrutiny on issues such as correct wage level classification and SOC occupation code selection.

What Comes Next

USCIS may run another lottery this year if employers do not file enough cap petitions to exhaust the full allocation of 85,000 H-1B visas.  In addition, there may be other work authorization options, including a STEM OPT extension, cap-exempt H-1B visa, treaty visas such as E-3, TN, H-1B1, extraordinary ability O-1 visa or even permanent residence pathways. It is important to consult a qualified immigration professional to assess the full range of available options.   

Need to Know More?  

For questions about H-1B lottery and related immigration processes, please contact Partner Chad Blocker at [email protected].

This blog was published on April 17, 2026, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, Facebook and Instagram.