USCIS has announced that the FY 2027 H‑1B cap registration window will run from March 4 to March 19, 2026. During this period, employers seeking to sponsor H‑1B workers for this year’s lottery (covering employment beginning October 1, 2026) must use a USCIS online account to electronically register each beneficiary for the selection process and submit the required $215 H‑1B registration fee for each entry.
This upcoming cap season will be shaped more than ever by two major policy developments: the new wage‑weighted lottery system and the presidential proclamation imposing a $100,000 fee on certain H‑1B petitions.
The Wage‑Weighted Lottery: A Structural Shift in Selection Odds
The wage‑weighted lottery represents a significant shift in how employers approach H‑1B registrations. Under a new regulation, the Department of Homeland Security will replace the longstanding random H‑1B cap lottery with a system that gives beneficiaries offered higher wages a greater chance of selection. The weighing is based on the Department of Labor’s four‑level prevailing wage system. Rather than each beneficiary receiving a single lottery entry, the number of entries will now correspond to the DOL wage level associated with the offered position:
- Wage Level I: 1 lottery entry
- Wage Level II: 2 lottery entries
- Wage Level III: 3 lottery entries
- Wage Level IV: 4 lottery entries
Higher wage level, typically associated with more experienced or specialized roles, now enjoy significantly better odds of selection. Entry level positions tied to Wage Level 1 face the lowest chances, while Level 3 and Level 4 roles gain a substantial advantage. This dynamic is expected to push employers to elevate salaries where feasible, prioritize more senior or specialized positions and reduce reliance on lower wage H 1B hiring.
Under the new system, employers must indicate the Department of Labor’s Occupational Employment and Wage Statistics (OEWS) wage level corresponding to the offered salary for the occupation and geographic area of intended employment at the time of registration. If selected, the subsequent H-1B petition must include documentation supporting the wage level chosen.
If multiple employers submit bona fide registrations for the same beneficiary, the beneficiary will be entered into the lottery according to the lowest wage level among those registrations. USCIS may deny or revoke a petition if it determines that an employer inflated a wage level to improve selection odds or later reduced the wage below the level certified in the registration.
As a reminder, this online registration process will only impact new H-1B visas subject to the annual quota or “cap” of 65,000 visas (Regular cap) and an additional cap of 20,000 H-1B visas available for “specialty worker” beneficiaries with advanced degrees from US colleges or universities (US Masters cap). Moreover, H-1B petitions filed by institutions of higher education, or a related or affiliated nonprofit entity, and those filed by nonprofit or governmental research organization, are exempt from the H-1B cap.
The $100,000 Proclamation: Assessing the New Cost Impact
The second major policy development arises from the September 2025 presidential proclamation, which imposes a $100,000 fee on new H‑1B petitions filed for beneficiaries outside the United States who require consular processing. The fee applies to all cap‑subject petitions, including those selected in the FY 2026 lottery, but it does not apply to change‑of‑status filings. See our prior post for details.
USCIS has confirmed that F‑1 students changing status to H‑1B from within the United States are exempt. By contrast, candidates located abroad will generally require consular notification, triggering the $100,000 fee.
Employers should also exercise caution: even if a beneficiary is in the United States, USCIS may determine that a change‑of‑status request is not approvable, for example, if the beneficiary failed to maintain valid status. In such cases, the employer would be required to pay the $100,000 fee or obtain a national interest exception in order to secure approval of the underlying petition.
This creates a sharp strategic divide. US‑based international graduates become far more attractive candidates, while employers may be reluctant to sponsor workers abroad due to the substantial additional cost.
Looking Ahead
The 2026 cap season is expected to feature fewer total registrations, a shift toward more specialized and senior roles, and increased use of change of status filings to avoid the $100,000 fee. The H 1B program is evolving into a higher cost, higher skill pathway. Employers prepared to invest in top tier talent will remain active participants, while others may pivot to alternative visa strategies or focus on international graduates already in the United States.
Employers and their immigration counsel should begin evaluating prospective H‑1B candidates now to determine appropriate wage levels well before USCIS opens the FY 2027 registration period. We will continue to monitor developments in the USCIS cap registration process and will provide updates throughout the FY 2027 cap season.
