Synopsis
While this has impacted large IT service companies and startups, the current situation favours those commanding higher wages, such as master’s degree holders in the US.While this has impacted large IT service companies and startups, the current situation favours those commanding higher wages, such as master’s degree holders in the US. This year has also seen increased filings by small and mid-tier companies, which are willing to pay a premium for the right talent and are likely to see less competition for the work permits from big IT firms, they added.
Shilpa Malik, managing attorney at VisaNation Law Group, said she saw a 50% decline in filings from last year. Other attorneys ET spoke with put it around 30%.
The US Citizenship and Immigration Services (USCIS) opened fresh H-1B registrations for fiscal 2027 from March 4 to March 19. The financial year for the USCIS starts on October 1.
Official data on filings this year are not available. In FY26, the USCIS received 336,153 eligible registrations. From the applications, it selects 85,000 every year through a lottery process.
With a $100,000 fee for fresh H-1B petitions and wage-based selection process, immigration attorneys saw what they termed as the cooling of registration numbers.
Shift in registration process
In terms of the employer landscape, there is a notable rise in participation from small-to-midsize firms, Malik said. “Previously, these companies were often discouraged by the diluted odds created by large outsourcing firms. Now that the playing field is level, they feel they have a legitimate, fair shot at securing talent,” she said.
In addition, employers this time around prioritised higher wage levels to maximise their chances of getting selected.
Master's degree holders in the US have an advantage, said experts. “Between the Master's cap and the structural shift toward higher-skilled, higher-compensated roles, these applicants are in the strongest position they have been in years, possibly ever,” Malik said.
Appetite for high-skilled talent remained resilient, said Joel Yanovich, senior attorney at Ganey Law Group. "The market isn't shrinking; it’s just becoming more intentional."
This also means many employers consciously stayed back from getting into the process. Startups and jobs that require freshers or early-stage workers with lower levels of salaries, and industries that traditionally do not pay as much as other industries, such as the not-for-profit sector, are not competitive enough in the current system, said Immigration.com founder Rajiv Khanna.
“All these sectors are unevenly weighed in the wage-based system,” he pointed out. His firm saw a 30% decline in the number of applications, Khanna said.
No second-cap season
Even with the decline, experts believe that there is unlikely to be a second cap season. Second cap refers to the USCIS opening another window for filing H-1B applications in the same year if the quota was not met.
Xiao Wang, founder and CEO of Boundless Immigration, said even with overall selection numbers likely being lower, primarily due to the expectation of lower numbers of consular-related filings, there might not be any need for a second round of selection this year.
“What will drive the need for a second round would be any additional changes in immigration rules or world events that could reduce employers' appetite to file an application,” he said.
