Reference H‑1B cap season FAQ Share this article LinkedIn Facebook X (Twitter) February 20, 2026 Cap-shot: Current FY 2027 H‑1B cap season updates When does the H‑1B cap season start this year? The initial registration period for fiscal year (FY) 2027 runs March 4–19, 2026. More information appears below. Who is subject to the $100,000 fee mandated by the H‑1B proclamation? USCIS has issued guidance confirming that some H‑1B petitions filed on or after Sept. 21, 2025, must include a $100,000 fee. This is an evolving issue. More information appears below. Does the new “weighted selection” rule apply to the FY 2027 lottery? Yes. The rule, effective Feb. 27, 2026, prioritizes higher‑wage positions in the H‑1B cap lottery. More information appears below. Understanding the H‑1B cap, H‑1B lottery and “weighted selection” rule What is the H‑1B cap and who is subject to it? The term “H‑1B cap” refers to the number of new H‑1B visas allocated each fiscal year. There are: 20,000 H‑1B visas available to individuals with a U.S. master’s degree or higher from an accredited, nonprofit U.S. university (“master’s cap”), and 65,000 additional H‑1B visas available to all other eligible foreign professionals. U.S. Citizenship and Immigration Services (USCIS) typically opens registration in March. During this time, employers submit online registrations for each worker they seek to sponsor. Who is exempt from the H‑1B cap? The cap does not apply to: Institutions of higher education Government or nonprofit research organizations Foreign nationals already holding H‑1B status who are renewing their status or changing employers Cap-exempt petitions must include documentation showing eligibility. How many H‑1B cap registrations are submitted each year? For FY 2026, USCIS received 358,737 registrations, compared with 479,953 the prior year. This was a 27% reduction from FY 2025. The FY 2026 selection rate was approximately 35% (120,141 selected out of 353,981 eligible registrations). How are H-1B visas allocated under the cap? After registration closes, USCIS conducts an H-1B lottery. USCIS first conducts the regular cap lottery. Master’s cap registrations not selected in the regular lottery are reentered into the master’s cap lottery. USCIS issues a Selection Notice for each registration it selects in the lottery, and the employer has 90 days after April 1 to file the petition. Are both master’s and regular cap lotteries conducted at the same time? No. USCIS first conducts the regular cap lottery. Any master’s cap registrations not selected are entered into a second master’s cap lottery. What changes have been made to the lottery selection? The Department of Homeland Security published the final rule on the weighted selection process on Dec. 29, 2025, effective Feb. 27, 2026. USCIS stated that if FY 2027 registrations exceed the cap, it will conduct a weighted selection lottery where each H-1B registration will receive between one and four entries into the lottery selection pool according to the prevailing wage level (as determined by the Department of Labor) that the offered salary meets or exceeds. Regardless of the number of entries a worker’s registration receives, each worker can only be selected once in the lottery. If the number of registrations does not exceed the cap, all properly submitted registrations will be selected. Weighted selection lottery entries Registrations will receive a different number of entries in the lottery depending on the prevailing wage level that the offered salary meets or exceeds. The prevailing wage levels are determined by the Department of Labor and are based on data for the specific occupation and area of employment. Wage Level I = 1 entry Wage Level II = 2 entries Wage Level III = 3 entries Wage Level IV = 4 entries Overview of the H-1B petition timeline STAGE 1: Initial preparation STAGE 2: Registration period & lottery STAGE 3: H‑1B cap petition filing window STAGE 4: Activating H‑1B status STAGE 5: Starting work December–March March 90‑day filing window (April 1–June 30) October & later Oct. 1 & later Employer prepares documents. Registration submitted to USCIS via online portal; USCIS issues lottery notifications. USCIS sends selection notifications to prospective employers or their authorized representatives (not to the beneficiary). Employers file petitions for selected workers. Premium processing may be available and guarantees that USCIS will review the petition within 15 business days and issue a response. Under regular processing timelines, USCIS processing may take several months. If petition is approved as a “change of status,” the beneficiary’s status will automatically change to H‑1B on the start date listed on the approval notice. Beneficiaries who do not automatically change status to H‑1B can activate their H‑1B status after traveling abroad by obtaining a visa stamp and entering the U.S. as early as Sept. 21. Canadian citizens are visa‑exempt and may present the approval notice at entry. Workers may begin employment based on their H‑1B status as early as Oct. 1. Breakdown of the H‑1B cap registration period and lottery What information must the employer submit? An employer or authorized representative for the beneficiary must submit the following information: Legal name of petitioner Federal Employer Identification Number (FEIN) of petitioner Legal name and position of the authorized beneficiary Position of authorized individual for petitioning company Beneficiary’s name, gender, date of birth, country of birth and citizenship, and passport number Whether the beneficiary has a U.S. advanced degree The Standard Occupational Classification (SOC) code for the beneficiary’s offered position The area of intended employment The relevant Department of Labor wage level that the beneficiary’s offered salary equals or exceeds The passport used at registration must also be used for the petition and for U.S. entry. How does USCIS update registration status after the lottery? If selected, the status becomes “Selected.” If not selected, the status remains “Submitted.” USCIS may conduct additional selections if needed. When final selections conclude, remaining registrations are marked “Not Selected.” Post-registration: Breakdown of the H-1B cap petition process What happens during the petition process? Petitions must include: The Selection Notice Certified Labor Condition Application (LCA) Signed forms and employer letters All support documentation Can beneficiaries travel while the case is being processed? Travel while a change of status petition is pending may result in denial or trigger the $100,000 fee. Company policies may further limit travel. Activating H‑1B status and starting work When does H‑1B status take effect? Beneficiaries in the U.S. who hold another visa status (e.g., F-1, L-1) valid through at least Oct. 1 can file a “change of status” petition. Their H-1B status will automatically take effect on the requested start date on or after Oct. 1, or on the date the petition is approved, whichever date is later. If an H-1B petition is approved as a change of status, a Form I-94 is issued to provide evidence of the beneficiary’s approved H-1B status attached to the bottom portion of the approval notice. The I-94 indicates the date that the H-1B status takes effect and the date that status will expire. After the H-1B change of status takes effect, if the beneficiary travels and return to the U.S. in H-1B status, they will be issued a new I-94 by U.S. Customs and Border Protection (CBP). Is travel required to activate H-1B status? Not for change of status cases. The visa stamp is required only for entry to the U.S.; it does not control status once inside the U.S. in change of status cases. Is a visa appointment required before activating H-1B status? If the petition is filed or approved for consular notification (as opposed to as a change of status that takes effect automatically on Oct. 1 or later), beneficiaries must typically obtain an H-1B visa stamp in their passport before entering the U.S. to activate their H-1B status. Beneficiaries must apply at a U.S. embassy or consulate in their home country or country of residence. If the beneficiary is from a country where the U.S. government is not conducting routine nonimmigrant visa operations, they must apply at the designated embassy or consulate listed on the State Department’s website unless their residence is elsewhere. Canadian citizens are visa-exempt and can present their H-1B approval notice at a port of entry or pre-flight inspection location. How long is H-1B status valid? Typically, up to three years initially, with extensions available up to six total years. Time abroad is not counted toward the six-year limit. Green card sponsorship may allow extensions beyond six years. H‑1B proclamation: $100,000 payment requirement What is the H‑1B proclamation? Signed by President Trump on Sept. 19, 2025, and titled “Restriction on Entry of Certain Nonimmigrant Workers,” the H-1B proclamation imposes a $100,000 payment for certain H‑1B petitions filed on or after Sept. 21, 2025, at 12:01 a.m. EDT. Who is subject to the payment? Foreign nationals who: Are outside the U.S. and lack a valid H‑1B visa, Are inside the U.S. but the petition requests consular notification, port‑of‑entry notification or pre‑flight inspection, or Request a change/extension/amendment and USCIS finds them ineligible, meaning the petition would be approved as a request for consular notification instead. Who is not subject to the payment? The fee does not apply if: The petition was filed before 12:01 a.m. EDT Sept. 21, 2025, or The beneficiary is inside the U.S. and the petition is approved as a change/extension/amendment. When and how must the payment be made? Government guidance indicates that payment must be completed before filing the petition. Proof of scheduled payment via pay.gov must accompany the filing. Are there exceptions to the payment? Government guidance states that the Secretary of Homeland Security may grant an exception under the following conditions: The foreign national’s presence is deemed to be in the national interest; No qualified American worker is available for the role; The individual poses no threat to U.S. security or welfare; and Requiring the payment would significantly undermine U.S. interests. Employer resources USCIS: H-1B Cap Season USCIS: H-1B Specialty Occupations USCIS: H-1B Electronic Registration Process Contact a BAL attorney for assistance securing H‑1B visas for your employees. LEARN MORE *This reference page does not constitute legal advice or create an attorney‑client relationship.