H-1B Cap 2026: The Complete Guide to Registration, Lottery, and Filing

The H-1B is a nonimmigrant work visa for specialty occupations: positions that require a U.S. bachelor’s degree (or its equivalent in a specific field) to perform the duties. Computer engineers, financial analysts, biomedical researchers, market research analysts, accountants, and many physicians fill cap-subject H-1B positions every year. The visa is the primary route for foreign professionals to work in the U.S. for a private employer.

This guide covers the FY 2027 cap cycle (the cap year that began with March 2026 registration and runs from October 1, 2026 through September 30, 2027). It is part of Claxton Law’s Employment Visas pillar, alongside coverage of PERM labor certification for the path from H-1B to a green card.

What is the H-1B?

The H-1B is governed by INA section 101(a)(15)(H)(i)(b) and the regulations at 8 CFR 214.2(h). To qualify, the position must be a specialty occupation, meaning:

• The job duties require theoretical and practical application of a body of specialized knowledge.
• The position requires at least a U.S. bachelor’s degree (or foreign equivalent) in a specific field, or in a closely related set of fields, as a minimum.
• The bachelor’s requirement is common to the industry, or the employer normally requires it, or the position is so complex it can only be filled by someone with the degree.
• The foreign worker holds the required degree (or equivalent through education plus experience under the three-for-one rule).

The H-1B is filed by a U.S. employer on Form I-129 with the H Classification Supplement. The worker cannot self-petition for H-1B. The employer must obtain a certified Labor Condition Application (LCA) from the DOL before filing.

The H-1B annual cap structure

Congress sets the H-1B cap at 85,000 visas per fiscal year, split into two pools:

The 20,000 master’s cap is selected first. Beneficiaries with U.S. master’s degrees who lose in the master’s pool then re-enter the regular 65,000 pool, effectively getting two chances. This is the single biggest reason a U.S. master’s degree improves H-1B odds.

Quick answer. The H-1B annual cap is 85,000 visas: 65,000 regular cap plus 20,000 reserved for U.S. master’s degree holders. The 20,000 master’s cap is drawn first, then unselected master’s registrations re-enter the regular pool, giving U.S. master’s graduates two chances in the lottery.

Cap-exempt versus cap-subject

Certain H-1B employers are exempt from the cap entirely. A cap-exempt H-1B can be filed any time of year, has no registration requirement, and does not go through the lottery.

Cap-exempt employer categories

• Institutions of higher education accredited under section 101(a) of the Higher Education Act.
• Nonprofit organizations affiliated with an institution of higher education (an active affiliation in research, training, or curriculum is required).
• Nonprofit research organizations whose primary mission is basic or applied research.
• Governmental research organizations, federal, state, or local.

What cap-exempt status preserves

A worker employed by a cap-exempt employer is not counted against the cap. If the worker later moves to a cap-subject employer, that employer must enter the regular lottery for that worker unless the worker has already been counted against the cap within the last 6 years. A worker counted previously may transfer to a cap-subject employer without re-entering the lottery (subject to remaining H-1B time).

The 2026 H-1B registration window

USCIS has used an electronic registration system since FY 2021 (cap registration in March 2020 for the October 2020 start). The system runs through the employer’s myUSCIS account at my.uscis.gov.

FY 2027 timeline (the 2026 cycle)

• March 7, 2026: Registration window opened.
• March 24, 2026: Registration window closed.
• By March 31, 2026: Initial selection results posted in myUSCIS accounts.
• April 1, 2026: Earliest H-1B cap petition filing date.
• June 30, 2026: Latest filing deadline for selected registrations (90-day window).
• October 1, 2026: Earliest H-1B start date for the new cap year.
• August 2026: Potential second lottery selection if the cap is not exhausted by initial petition filings.

Registration data collected

Each registration captures the beneficiary’s legal name, date of birth, country of birth, country of citizenship, passport number, education level, and gender. The employer pays $215 per beneficiary registered. The new $215 fee took effect April 1, 2024, up from the prior $10 fee, in an effort to discourage duplicate registrations.

Beneficiary-centric lottery selection

For FY 2025 and later, USCIS implemented a beneficiary-centric selection process. Each unique foreign worker is entered in the lottery once, regardless of how many employers have registered them. The change cut total registrations by 38 percent in FY 2025 and brought the lottery back to roughly 60 percent selection odds for unique workers, up from roughly 14 percent in FY 2024 under the registration-centric system.

The new rule also added an anti-fraud signature requirement. Each H-1B registration must be electronically attested to by an authorized signatory of the employer, with the attestation under penalty of perjury. USCIS has used the attestation to refer suspicious registration patterns (multiple unrelated employers registering the same worker, for example) for fraud investigation.

What selection does and does not guarantee

Selection in the lottery only gives the employer the right to file a full H-1B petition. The petition still must be approved by USCIS on the merits, with all evidence of specialty occupation, employer-employee relationship, beneficiary qualifications, and LCA wage support. Selected registrations are denied at rates between 5 and 15 percent depending on the field, occupation, and employer profile.

After selection: filing Form I-129

Once a registration is selected, the employer has 90 days to file the full H-1B petition on Form I-129 with the H Classification Supplement and supporting evidence. The filing window for FY 2027 runs from April 1 to June 30, 2026.

Required evidence

• Certified Labor Condition Application (LCA) from the DOL FLAG system.
• Job description and a detailed explanation of why the position is a specialty occupation.
• Beneficiary’s degree and transcripts, with a credential evaluation if the degree is foreign.
• Documentation of the employer’s legitimacy: federal tax returns, audited financials, payroll evidence.
• Itinerary of services if the work is at a client site or multiple worksites.
• Statement on the worker’s prior immigration history and any prior H-1B time.
• Filing fees totaling the amounts described below.

Labor Condition Application

The LCA on Form ETA-9035 must be certified by the DOL before Form I-129 is filed. The LCA commits the employer to four conditions: pay the higher of the actual wage or the prevailing wage, maintain working conditions for other similarly employed workers, not displace U.S. workers, and notify the worksite of the H-1B filing. LCA processing through FLAG is typically 7 business days.

H-1B fees in 2026

Total typical employer cost for a new H-1B cap case runs $4,500 to $7,500 in 2026 without premium processing, or $7,300 to $10,300 with premium processing. The DOL requires that the H-1B worker not pay any of the ACWIA training fee, fraud prevention fee, or attorney fees attributable to the employer’s LCA obligations. Reimbursement schemes that effectively transfer these costs to the worker can void the LCA and trigger back-wage liability.

Premium processing

Premium processing under Form I-907 commits USCIS to issuing a decision (approval, denial, RFE, or NOID) within 15 business days. The fee in 2026 is $2,805 per petition. Premium processing is available for H-1B initial petitions, extensions, and amendments. It is widely used because H-1B workers often need start dates aligned with the October 1 cap year start or with project deadlines that cannot wait for standard 4 to 8 month processing.

H-1B duration and AC21 extensions

An initial H-1B is approved for up to 3 years. The petition can be extended for another 3 years for a 6-year maximum under section 214(g) of the INA. Time spent outside the U.S. for more than 1 year resets the H-1B clock.

Beyond 6 years: AC21 extensions

The American Competitiveness in the 21st Century Act of 2000 (AC21) created two extension pathways beyond the 6-year limit, intended to bridge workers stuck in long EB-2 and EB-3 priority date backlogs.

• Section 106(a) and 106(b) (1-year extensions). Available if a PERM labor certification or an I-140 petition has been filed at least 365 days before the H-1B 6-year limit, and that petition or labor certification is still pending. Renewable in 1-year increments until the case resolves.
• Section 104(c) (3-year extensions). Available if the worker has an approved I-140 but the priority date is not yet current for visa availability. Renewable in 3-year increments until the priority date becomes current.

AC21 extensions can run indefinitely. Workers from India in the EB-2 or EB-3 category often spend 10 to 15 years on AC21 H-1B extensions while waiting for their priority date.

H-1B portability and transfers

H-1B is portable under section 105 of AC21 (INA section 214(n)). When a new employer files Form I-129 for the worker, the worker may begin work for the new employer on the date the new petition is properly filed, without waiting for USCIS approval. The new employer obtains its own LCA, files its own I-129, and is fully responsible for the new employment.

Material changes require an amendment

If the existing employer changes the worker’s job duties, work location to a new MSA, or other material terms, an H-1B amendment on Form I-129 is required before the change takes effect. The Matter of Simeio Solutions precedent (USCIS Administrative Appeals Office, 2015) confirmed that a new MSA worksite is a material change that requires amendment.

H-1B and the PERM path to a green card

The H-1B is a temporary visa, but most cap-subject H-1B workers ultimately seek a green card through PERM in the EB-2 or EB-3 category. The H-1B serves as the worker’s lawful status while PERM runs. Two timing rules matter:

• 365-day rule (AC21 106). PERM must be filed at least 365 days before the H-1B 6-year limit to allow 1-year H-1B extensions beyond the limit. Employers often file PERM during years 4 or 5 of H-1B.
• I-140 approval (AC21 104(c)). An approved I-140 unlocks 3-year H-1B extensions and allows H-4 spouse EAD eligibility. The I-140 also locks the priority date, which is portable to a new employer in the same EB category.

For the full PERM workflow, see PERM Labor Certification Step-by-Step. For wage determination strategy, see PERM Prevailing Wage Determination.

H-4 dependents and the H-4 EAD

H-4 status is available to the H-1B worker’s spouse and unmarried children under 21. H-4 dependents can live in the U.S., attend school, and travel, but cannot work unless they qualify for the H-4 EAD.

H-4 EAD eligibility

Under the 2015 H-4 EAD Rule (8 CFR 274a.12(c)(26)), an H-4 spouse can apply for work authorization on Form I-765 if the H-1B principal has either:

• An approved I-140 immigrant petition, or
• Been granted an H-1B extension beyond the 6-year limit under AC21 section 106.

The H-4 EAD is open category (no employer sponsor required) and renewable as long as the H-1B principal maintains H-1B status and the I-140 or AC21 condition continues. The rule has faced ongoing litigation (Save Jobs USA v. DHS), but the EAD program remains operational in 2026.

Common reasons H-1B gets denied

• Specialty occupation not established. The most common denial ground. USCIS finds that the position does not require a specific degree, that the degree field is too generic, or that the employer’s typical practice does not support a degree requirement.
• Beneficiary qualifications mismatch. The worker’s degree field does not match the position duties closely enough.
• Wage offer below LCA prevailing wage. The wage on Form I-129 does not match or exceed the LCA wage.
• Employer-employee relationship problems. Common at consulting firms where the worker is placed at client sites. USCIS expects evidence that the petitioning employer (not the client) controls the worker’s day-to-day work.
• Insufficient client documentation. Statement of work, master service agreement, end-client letter, and itinerary requirements.
• Speculative employment. Cap registrations filed without an actual position to fill draw scrutiny under the 2024 USCIS rule against speculative filings.
• Beneficiary prior immigration violations. Overstays, unauthorized work, or prior H-1B fraud findings.

Related employment visa and labor certification guides

• PERM Labor Certification Step-by-Step: the path from H-1B to an EB-2 or EB-3 green card.
• PERM Prevailing Wage Determination: wage strategy for PERM and the I-140.
• Employment Visas pillar overview: H-1B, L-1, O-1, E-2, and TN options.
• USCIS Processing Times (2026): H-1B, I-140, and I-485 timelines.

Frequently asked questions