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H-1B Modernization Rule Brings Key Changes for Applicants This Year

For the 2026 H-1B lottery, updates include enhanced fraud detection measures, stricter enforcement of multiple registrations by related entities, and increased scrutiny of employer-employee relationships. Applicants must ensure compliance with eligibility criteria, accurately complete registrations, and adhere to deadlines. USCIS also emphasizes transparency and proper documentation to avoid disqualification. Early preparation and attention to updated policies are crucial.

Shashank Singh
By Shashank Singh - Breaking News Reporter
12 Min Read

Key Takeaways

  • The H-1B registration period for FY 2026 runs March 7–24, 2025; results will be notified by March 31, 2025.
  • Registration fees increased from $10 to $215 per beneficiary, representing a 2,050% rise, non-refundable regardless of outcome.
  • H-1B program updates include redefined “specialty occupation,” stricter compliance checks, and extended cap-gap benefits for F-1 visa holders.

The 2026 H-1B lottery is set to bring critical changes and procedural updates that will affect how employers and applicants approach the highly competitive visa selection process. These updates reflect efforts by the United States Citizenship and Immigration Services (USCIS) and the Department of Homeland Security (DHS) to enhance fairness, reduce fraud, and align the visa process with evolving workforce demands. Below, we outline the most important changes, their implications, and what applicants should know.

Registration Period and Timeline

H-1B Modernization Rule Brings Key Changes for Applicants This Year
H-1B Modernization Rule Brings Key Changes for Applicants This Year

For fiscal year 2026, USCIS has confirmed that the H-1B registration period will begin on March 7, 2025, at 12:00 PM Eastern Time (EST) and close on March 24, 2025, at 12:00 PM EST. This 17-day period provides a limited window for employers to submit registrations for candidates they wish to sponsor. Notifications regarding lottery results will be sent by March 31, 2025.

Successful candidates—termed “registrants”—can proceed to file cap-subject H-1B petitions as early as April 1, 2025. These petitions must be submitted within 90 days of selection under USCIS guidelines, and approved cases will carry a job start date no earlier than October 1, 2025. It is critical to understand that the employer completing the registration will be the only party eligible to file the cap-subject petition for the selected applicant.

Dramatic Fee Increase for Registration

Among the most striking changes to the 2026 H-1B lottery process is the sharp increase in the registration fee. In previous years, it cost $10 to register each beneficiary for the lottery. This fee has now risen to $215. According to USCIS, this move aims to align the fee with the administrative costs involved. However, it represents a substantial cost increase—2,050%—that significantly affects employers planning to submit multiple registrations. Regardless of the outcome, the registration fee remains non-refundable.

Employers must now carefully evaluate how this expense may alter their staffing strategies. Large organizations sponsoring multiple workers may need to budget appropriately, while smaller businesses may find it more challenging to absorb the increased fee.

The Beneficiary-Centric Selection Process

One of the key procedural changes continuing from FY 2025 is the beneficiary-centric selection process. This approach reduces the risk of manipulation by ensuring that each individual can enter the lottery only once, no matter how many employers register on their behalf. Unlike the previous system, which allowed applicants to potentially gain multiple entries if registered by numerous employers, this update prioritizes fairness.

If selected, all employers who submitted registrations for that beneficiary will receive notification, and the individual will be able to choose one employer to proceed with for their H-1B petition. This ensures a level playing field for candidates and reduces the number of duplicate or excessive registrations that have affected the system in the past. Recent data shows that this process effectively reduced multiple registrations and led to a significant decrease in total registration numbers for FY 2025.

Introduction of the H-1B Modernization Rule

DHS’s H-1B Modernization Rule, introduced on January 17, 2025, brings major updates to the H-1B program, refining eligibility criteria and adding compliance measures. Key highlights include:

  1. Redefining “Specialty Occupation”: Under the new rule, sponsored roles must now show a clear and direct link—referred to as a “logical connection”—between the job’s responsibilities and the degree required. This redefinition ensures that positions genuinely require specialized education.

  2. Extended Cap-Gap Protection for F-1 Students: F-1 visa holders selected through the lottery now benefit from extended work authorization under the Optional Practical Training (OPT) cap-gap rule until April 1 of the following year. This extension helps bridge the time between the visa approval process and the new fiscal year.

  3. Third-Party Placement Scrutiny: Employers sending H-1B workers to clients or third-party organizations must show that the work performed at those sites involves a specialty occupation.

  4. Enhanced Site Visit Authority: DHS has strengthened its ability to conduct inspections at an H-1B worker’s job site to ensure companies comply with immigration laws and visa requirements.

  5. Deference to Past Decisions: When reviewing extensions for H-1B workers, USCIS must now follow a policy of deference to prior approvals, provided the facts and job details remain unchanged. This reduces uncertainty for current H-1B holders awaiting extensions.

These changes demonstrate the government’s intention to maintain high compliance standards without overly burdening applicants who have previously satisfied H-1B requirements.

H-1B Cap and Registration Numbers

The H-1B cap for FY 2026 remains unchanged at 65,000 regular visas and an additional 20,000 reserved for applicants holding advanced U.S. degrees. Additionally, 6,800 visas from the regular cap are allocated to citizens of Chile 🇨🇱 and Singapore 🇸🇬 under specific trade agreements. Selection within the lottery has always been competitive, but recent trends illustrate how the new rules are impacting registration numbers:

  • FY 2023: 474,421 eligible registrations, 127,600 selected.
  • FY 2024: 758,994 eligible registrations, 188,400 selected.
  • FY 2025: 470,342 eligible registrations, 135,137 selected—a noticeable reduction (38.6%) compared to FY 2024.

This decline in registration numbers illustrates the effectiveness of the beneficiary-centric selection process in curbing repeat or excessive submissions. It is reasonable to expect ongoing refinement of the system as USCIS assesses future needs.

Preparing for the FY 2026 Lottery

For potential H-1B applicants and companies, certain steps are critical to navigating the upcoming process effectively:

  1. Plan Early: With the registration period lasting just 17 days, it is essential for employers to ready their plans and materials in advance.

  2. Budget for New Expenses: Given the steep increase in registration fees to $215 per beneficiary, financial planning is more important than in prior years.

  3. Assess Eligibility Before Registering: Employers should verify that candidates meet H-1B eligibility requirements to avoid unnecessary costs.

  4. Develop a Strategy for Multiple Registrations: Beneficiaries with multiple potential employers must weigh their options carefully, knowing they can submit only one formal petition if selected.

  5. Prepare for Compliance Checks: Employers filing petitions for third-party placement should ensure that the position meets the specialty occupation requirements under the new rules. Similarly, they should be ready for post-approval site visits.

  6. Extended Cap-Gap Advantages for Students: For international students on an F-1 visa, the cap-gap extension offers more time to work and transition seamlessly to H-1B status.

Broader Implications and Industry Response

The procedural updates to the H-1B lottery, combined with the H-1B Modernization Rule, reflect USCIS’s and DHS’s continued push for a balanced, fraud-preventative visa process. However, these changes come with added responsibilities that employers and applicants must handle carefully. The fee increase, for instance, may discourage some smaller companies from participating, potentially tilting the application pool toward larger employers.

Some experts argue that the surge in costs, coupled with the clarified definition of specialty occupation, will raise the bar for employment-based visa petitions. At the same time, these reforms offer benefits—enhanced fairness, better compliance measures, and consistency in decisions on extensions.

In summary, applicants for the 2026 H-1B lottery should note critical updates like the new $215 registration fee, the beneficiary-centric selection process, and rule changes introduced by the H-1B Modernization Rule. As the March registration period nears, the key strategies will include preparation, compliance, and careful decision-making about potential sponsorship. For detailed guidance and ongoing updates, applicants are encouraged to consult official sources like the USCIS H-1B Visa Page.

As reported by VisaVerge.com, the changes in the H-1B process this year signal a new era of transparency and better resource management. It is essential for all stakeholders—employers, applicants, and attorneys—to remain informed, proactive, and compliant throughout the process.

Learn Today

H-1B Lottery → A U.S. visa selection process allowing foreign workers in specialty occupations to apply under an annual numerical cap.
Cap-Gap Protection → Temporary work authorization extension for F-1 visa holders, bridging the gap between visa expiration and H-1B approval.
Specialty Occupation → A job requiring specialized knowledge and a specific academic degree directly related to the role’s responsibilities.
Beneficiary-Centric Selection Process → A system allowing individuals only one lottery entry, regardless of how many employers register them.
H-1B Modernization Rule → Updated regulations refining eligibility, compliance checks, and procedures for H-1B visa applications, introduced by DHS in 2025.

This Article in a Nutshell

The 2026 H-1B lottery introduces sweeping changes: a $215 registration fee, beneficiary-centric selections, and new “specialty occupation” criteria under the H-1B Modernization Rule. Enhanced fairness reduces duplicate entries, but compliance demands intensify. Employers must strategize early, budget wisely, and adapt to stricter rules, ensuring readiness for a competitive and evolving visa landscape.
— By VisaVerge.com

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Shashank Singh
Breaking News Reporter
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As a Breaking News Reporter at VisaVerge.com, Shashank Singh is dedicated to delivering timely and accurate news on the latest developments in immigration and travel. His quick response to emerging stories and ability to present complex information in an understandable format makes him a valuable asset. Shashank's reporting keeps VisaVerge's readers at the forefront of the most current and impactful news in the field.
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