H-1B Lottery for FY 2027
The demand for new professional H-1B workers continues to exceed the annual statutory limits of visas set by Congress of 65,000 for Bachelor’s degree holders and 20,000 for individuals with at least a U.S. Master’s degree. Last year, more than 57,000 employers registered approximately 339,000 individuals to participate in the H-1B lottery run by U.S. Citizenship and Immigration Service (USCIS). Registration for the FY 2027 lottery for new H-1B employment commencing on October 1, 2026 will open in March 2026, with exact dates to be announced by USCIS soon.
Employers will have only a few weeks during this period to register current and prospective employees for one of the coveted H-1B visa numbers allocated to FY 2027, so identifying and evaluating suitable candidates now is advisable, especially given the new wage level criteria (discussed in further detail below). With the exception of cap-exempt employers such as nonprofit institutions of higher education and governmental and research organizations, employers seeking to hire a new H-1B worker, or to obtain H-1B status for an existing employee in another nonimmigrant classification (e.g., F-1, TN, L-1), must register each prospective H-1B employee for the H-1B lottery during the designated registration period.
If you are an employer who wants to participate in the lottery, you or your representative must first electronically register and pay a fee of $215 for each prospective H-1B employee (beneficiary). You will be required to provide basic information about your company and each beneficiary you are requesting. To ensure beneficiaries are unique and their identities are accurate, registration must include the beneficiary’s valid passport information or valid travel document information. Each beneficiary must register using the same passport or travel document that they intend to use for H-1B travel and entry after H-1B petition approval. It is therefore critical for beneficiaries to plan ahead for renewal or issuance of their passport/travel document.
H-1B cap registrations are prepared, reviewed, and submitted using an electronic collaborative platform. Multiple users within an organization are able to coordinate with their SGG legal team. SGG will provide additional guidance once USCIS confirms the dates and procedural updates for the FY 2027 registration. The H-1B petition and Labor Condition Application (LCA) must refer to the same beneficiary information and position as identified on the registration form. USCIS will review all systems to ensure that the information provided by the employer during registration and in the LCA and H-1B petition for the beneficiary is consistent.
At the close of the registration window, USCIS will randomly select beneficiaries from the pool. Employers will be notified electronically of selection. If its registration for a particular beneficiary is selected, the employer will have 90 days to file the H-1B petition with USCIS, along with applicable filing fees.
A New “Weighted” H-1B Lottery Selection System
On December 23, 2025, the Department of Homeland Security (DHS) announced a final rule amending the process used to select beneficiaries registered for the H-1B lottery. The final rule becomes effective on February 27, 2026, in time for the FY 2027 H-1B cap registration. According to DHS, the final rule is intended to favor higher-skilled and higher-paid H-1B workers while still providing beneficiaries at all wage levels an opportunity to be selected.
Referred to as a “weighted selection system,” employers will be required to provide more information about the beneficiary and the job offered during the registration process. Employers will be required to identify the highest Occupational Employment and Wage Statistics (OEWS) level that the proffered salary meets or exceeds (i.e., I, II, III, or IV), based on the job’s related Standard Occupational Classification (SOC) code and geographic area of intended employment. The registration form will require evidence in support of the selected wage level. Beneficiaries will be “weighted” based on the wage level identified by the employer. For example, if the wage offered exceeds Level IV, the beneficiary will be entered into the lottery four times; if a Level III wage is identified, the beneficiary will be entered into the lottery three times; and so on. Based on the new requirements, it appears that beneficiaries with advanced U.S. degrees and a Level IV wage offer will have the most optimal chance of selection in the lottery.
Litigation might be pursued by some employers to challenge this new rule but unless an injunction is granted by a federal court on an emergency basis, it is presumed that this new rule will take effect for this year’s lottery.
Update Regarding Federal Litigation Challenging 100k Fee
As previously discussed in prior SGG news alerts (see https://www.sggimmigration.com/articles/), a new H-1B petition filed for a foreign national outside the U.S. without a valid H-1B visa, or for whom consular notification, port of entry notification, or pre-flight inspection is required, will be subject to a fee of $100,000 as a condition of eligibility. This new fee was created in September 2025 pursuant to the Presidential Proclamation, Restriction on Entry of Certain Nonimmigrant Workers, and applies to H-1B petitions filed after September 21, 2025.
This fee does not apply to a foreign national lawfully present in the U.S. and who is successfully approved for an H-1B amendment, change of status to H-1B, or extension of H-1B status. However, if an employer’s request for an amendment, change of status, or extension of stay is denied and the beneficiary is required to leave the U.S., the payment of this fee by the employer may be required.
An employer may ask to be exempted from this fee, but DHS has stated that exceptions would be granted only in “extraordinarily rare circumstances,” subject to the security and welfare interests of the U.S. To date, SGG is not aware of USCIS adjudications or approvals of such waivers in the national interest.
Although several lawsuits have been filed in an effort to block this fee requirement, the Proclamation remains in effect. In Chamber of Commerce of the United States of America v. DHS, the court upheld the fee rule; this decision is pending appeal. In another case, Global Nurse Force v. Trump, a hearing on class certification and request for a preliminary injunction is set for February 19, 2026. A third case challenging the fee, State of California et al v. Noem et al, was filed in December 2025 by a coalition of 20 states and remains ongoing.
What Employers Should Do Now
Employers should identify employees they would like to employ in H-1B status, so the process of collecting the information required to register the beneficiary can be started promptly, including evaluating the wage offer options to potentially maximize chances of lottery selection. It would also be prudent to analyze and advise on any employee immigration status or international travel issues now. Nonimmigrants who already hold H-1B status, who may need an extension of stay or change of employer, do not need to be registered for the lottery.
If your organization would like assistance in evaluating candidates requiring H-1B sponsorship or want to register an employee in the lottery, please contact one of our SGG attorneys.
We will continue to monitor government communications and court actions and provide additional updates as required.