H-1B Cap Process for FY26: Key Insights for Employers & Employees

As the FY26 H-1B cap registration period approaches, it's essential for employers and prospective employees to understand the process, recent changes, and key deadlines. At McEntee Law Group, we aim to simplify immigration complexities, ensuring that businesses and skilled workers are well-prepared for this highly competitive process.

What is the H-1B Visa?

The H-1B visa is a nonimmigrant visa that allows U.S. employers to hire foreign professionals in specialty occupations. These roles typically require at least a U.S. bachelor's degree or its equivalent in a directly related field. Given the demand for H-1B visas, the government implements an annual cap and a lottery system to allocate available slots fairly. [embed]https://www.youtube.com/watch?v=tcvPoFbKDlU&t=976s[/embed]

H-1B Cap and Lottery System

Each fiscal year, 85,000 H-1B visas are available:

• 65,000 for individuals with a bachelor’s degree (or equivalent).

• 20,000 reserved for those with a U.S. master’s degree or higher.

Because the number of applicants far exceeds the available slots, a random lottery is used to determine which registrants can proceed with an H-1B petition. In recent years, over 300,000 registrations have been submitted annually, making selection highly competitive.

Important Dates for FY26

• Registration Opens: March 7, 2025, at noon ET

• Registration Closes: March 24, 2025, at noon ET

• Lottery Selection Results: Expected by late March or early April

• Petition Filing Window (for selected registrants): April 1 - June 30, 2025

• H-1B Start Date (for approved petitions): October 1, 2025

Key Changes for FY26

1. Selection Process Based on Beneficiary: In previous years, multiple registrations from different companies for the same individual increased that person’s chances of selection. Now, the lottery is based on the individual beneficiary rather than the sponsoring employer, ensuring a fairer process for all applicants.
2. Increase in Registration Fees: The H-1B registration fee has increased from $10 to $215 per beneficiary. While still a relatively low amount, this change aims to deter frivolous or duplicate registrations.
3. Organizational Accounts for Employers: Employers can now manage all registrations through an organizational account on the USCIS portal, allowing for better coordination between legal representatives and HR teams.
4. Cap-Gap Extension for F-1 Students: A longer cap-gap extension is now available for F-1 students with pending H-1B petitions, ensuring they can continue working legally until their petition is adjudicated.
5. New Rules for Entrepreneurs: Entrepreneurs who own more than 50% of their company can now petition for an H-1B visa, though their visa duration is limited to 18 months, with one extension allowed.

What Happens If You Are Selected?

If selected, the employer must file an H-1B petition with USCIS within the designated 90-day window (April 1 - June 30). This requires submitting a Labor Condition Application (LCA) and supporting documentation, including evidence of the specialty occupation and the beneficiary’s qualifications.

Options If You Are Not Selected

Given the high demand for H-1B visas, many applicants will not be selected. Alternative options include:

• O-1 Visa (for individuals with extraordinary ability)

• L-1 Visa (for intracompany transfers)

• STEM OPT Extension (for F-1 students in qualifying fields)

• Cap-exempt H-1B Petitions (for universities and nonprofit research institutions)

• PERM Green Card

Preparing for the H-1B Season

Given the complexity of the process and recent changes, early preparation is crucial. Employers should:

• Identify candidates for sponsorship.

• Gather necessary documents in advance.

• Set up an organizational account on USCIS's online system.

• Monitor registration and selection timelines closely.

At McEntee Law Group, we are here to help businesses and employees confidently navigate the H-1B process. If you have questions or need legal guidance, reach out to our team today at info@mcenteelaw.com!