How a Second H-1B Lottery Works and Why USCIS Might Hold One

(UNITED STATES) — U.S. Citizenship and Immigration Services can hold a second H-1B lottery for fiscal 2027 if the first round of selections does not produce enough approved petitions to meet the annual cap of 85,000 visas.

That cap includes 65,000 visas under the regular limit and 20,000 reserved for U.S. master’s degree holders. With the FY 2027 registration window now closed after running from March 4–19, 2026, employers and applicants are watching for signs that USCIS may need additional selections later this year.

A second draw would come from the same pool of eligible registrations submitted during the March window. USCIS uses that process when petition denials, withdrawals, fraud invalidations or low filing rates leave visa numbers unused after the initial round.

Under the system now in place, USCIS selects beneficiaries rather than individual registrations. The beneficiary-centric model, effective since FY 2025 and continuing for FY 2027, uses passport or travel document numbers so each person gets one lottery entry regardless of how many employers submitted registrations for that worker.

That change aimed to curb fraud tied to multiple filings for the same person. USCIS sends selection notices through its online account system, and if a second H-1B lottery occurs, the agency announces it on its website and Cap Season webpage after it identifies any shortfall.

Employers chosen in any round then have 90 days from the notice date to file `Form I-129` petitions. Those filings must include Labor Condition Applications and documents showing the job qualifies as a specialty occupation.

Compliance issues can end a selection. Mismatched passport details or evidence that employers coordinated multiple registrations for the same beneficiary can invalidate a case.

USCIS has used second H-1B lotteries before. In recent years, they have typically come 2–6 months after the first selections, once the agency has enough filing and adjudication data to see whether the cap will be filled.

FY 2023 and FY 2024 are examples when additional draws followed because denials or withdrawals created open slots. Those patterns matter this year because USCIS has introduced more changes that could affect how many initial selections turn into approved petitions.

For FY 2027, the lottery uses a new wage-weighted system. Registrations tied to higher Occupational Employment and Wage Statistics levels receive more entries: Level IV four times, Level III three times, Level II twice, and Level I once.

That gives an edge to higher-paid positions and changes how employers assess their chances. It also reshapes expectations for entry-level applicants, including some recent graduates and U.S. master’s degree holders competing for the advanced-degree allotment.

Demand still far exceeds supply. Annual demand has consistently run 3–5 times above the 85,000 cap, which means even a smaller registration pool can still leave many employers and workers waiting to see whether a second H-1B lottery becomes necessary.

Several triggers could force USCIS to make more selections. One is attrition after the first round, when selected employers decide not to file because of cost, hiring changes or compliance concerns.

Another is a higher denial rate. Requests for Evidence, Notices of Intent to Deny and withdrawals can all reduce the number of petitions that ultimately count toward the cap.

Fraud enforcement has become a larger factor. A March 2026 Administrative Appeals Office precedent decision, Matter of Texperts, Inc., 29 I&N Dec. 491 (AAO 2026), confirmed that USCIS can issue fraud findings even after a petition has been withdrawn, especially in cases involving coordinated multiple registrations.

That ruling could increase invalidations. More invalidations would create more open visa numbers, which in turn could raise the odds of second H-1B lotteries.

A separate policy change may also affect filing behavior. A September 2025 Presidential Proclamation added a $100,000 supplemental fee for certain H-1B petitions filed on or after September 21, 2025.

The fee applies to initial visas for beneficiaries abroad or to cases electing consular processing. It does not apply to change-of-status cases in the United States.

That fee is facing litigation and may deter filings or increase withdrawals. If employers decide the cost is too high, USCIS could end up with more unused cap numbers after the first round.

Fraud Detection and National Security site visits are another pressure point. Those inspections are now routine and unannounced, with officers checking worksite compliance, wages and the employer-employee relationship.

That has raised the compliance burden on companies. Employers must maintain Public Access Files and make sure Labor Condition Applications match their registrations, or they face denials and possible revocations.

The next data points for FY 2027 will come in stages. USCIS is expected to release initial selection data after registrations closed on March 19, 2026, and the first announcement on how many beneficiaries were chosen is expected around mid-April 2026.

That figure matters because USCIS usually selects more people than the 85,000 cap requires. The agency typically needs about 114,000–120,000 selections to yield 85,000 approvals, based on attrition of 20–30%.

If USCIS selects too few people at the start, the risk of a gap rises. An initial selection total below about 130,000 signals shortfall risk.

Registration volume will also draw close attention. FY 2026 saw reduced numbers after the beneficiary-centric reform, falling from the FY 2024 peak of 780,884 registrations.

Even so, oversubscription remains likely. A FY 2026 example shows about 470,000 eligible registrations, and FY 2027 totals, once released, will show how demand responded to wage weighting and the new compliance climate.

Petition receipts and approvals will become more important by June and July 2026. If those figures show filings or approvals falling short of what USCIS needs to reach 85,000, the case for a second draw grows stronger.

Approval rates are another marker. Historical petition approval rates run about 70–80%, and a rate below 75% combined with withdrawals would indicate a high chance of additional selections.

USCIS often signals any extra round by summer. Notifications can come in fall for positions with October 1, 2027, start dates.

Recent history shows second lotteries do not happen every year, but they are not rare. Extra rounds occurred in 40–50% of recent years when the annual cap remained unfilled after the first round of filings.

In FY 2023, USCIS held a second draw in July 2022 after approvals came in below expectations because of denials and withdrawals. In FY 2024, USCIS made additional selections even though registrations reached a record 780,884, again because attrition left open numbers.

For FY 2025 and FY 2026, the beneficiary-centric shift reduced multiple registrations. Yet fraud investigations and new fees kept gaps alive, and FY 2026 showed non-conversion rates of about 20%.

Applicants selected in the first round face a narrow filing window and heavier scrutiny. Employers should move quickly within the 90-day period, confirm that passport details match, and ensure Labor Condition Applications reflect the OEWS wage level used for weighting.

Costs also remain high. Employers may need to budget at least $780 in base fees, a $500 anti-fraud fee, and $2,805–$17,750 in training fees, or $1,500 public law libraries, with the possible addition of the $100,000 supplemental charge for some consular cases.

Those numbers shape hiring decisions. They also help explain why some selected registrations never become filed petitions.

For workers who are not chosen in the first round, the pool remains fixed after the March window closes. A second H-1B lottery, if USCIS conducts one, would draw from those existing eligible registrations rather than open a new registration period.

That makes monitoring USCIS updates central for both employers and beneficiaries. Applicants should watch the Cap Season page for any notice of “additional selections” while making sure supporting documents such as degree records and employer letters are ready.

Some employers are already adjusting longer-term strategy. The wage-weighted system gives better odds to Level III and Level IV positions, which may push companies to rethink salary offers for future cap seasons.

That shift could squeeze entry-level applicants, especially those tied to Level I wages. OPT students may face slimmer odds under the new structure, while higher fees can weigh more heavily on startups and smaller firms than on larger technology companies.

At the same time, the H-1B program remains a central route for employers hiring workers in STEM, finance and healthcare fields. For many applicants, the question is no longer whether demand exceeds supply, but whether attrition, enforcement and cost pressures will leave enough unused slots for USCIS to act again.

The answer will emerge over the next several months as the agency releases selection totals, filing data and approval numbers. For employers and foreign workers waiting outside the first round, those figures will determine whether second H-1B lotteries return for FY 2027.