FY2026 H-1B Cap Reached: What it Means and What’s Next

The U.S. Citizenship and Immigration Services (USCIS) has officially reached the congressionally mandated H-1B cap for fiscal year 2026. As of July 18, 2025, USCIS has received a sufficient number of petitions to meet both the 65,000 regular cap and the additional 20,000 slots allocated for beneficiaries with U.S. master’s degrees or higher—commonly referred to as the master’s cap.

This announcement brings the FY2026 H-1B cap season to a close for new applicants under the lottery system. For thousands of foreign professionals and U.S. employers alike, this means it’s time to pivot, plan, and consider alternative immigration options.

What Happens Now?

While USCIS will no longer accept new cap-subject H-1B petitions for FY2026, it will continue to accept and process certain H-1B petitions that are cap-exempt. These include:

• Petitions to extend the duration of stay for current H-1B holders.
• Petitions to change the terms of employment for existing H-1B workers.
• Petitions for workers switching employers (also known as H-1B transfers).
• Petitions allowing concurrent H-1B employment with additional employers.

It’s also important to note that institutions of higher education, nonprofit research organizations, and government research entities remain eligible to file cap-exempt H-1B petitions year-round. These organizations are not subject to the lottery and can continue to sponsor H-1B workers regardless of the fiscal cap.

Implications for Employers and Applicants

Reaching the H-1B cap may come as a disappointment to many talented foreign nationals and the U.S. companies eager to hire them. The H-1B program, which allows U.S. businesses to employ foreign workers in specialty occupations requiring a bachelor’s degree or higher, remains a critical tool in filling skills gaps—particularly in STEM, healthcare, finance, and IT sectors.

But the cap’s strict numerical limits mean many qualified individuals are left out each year. This year was no exception.

For employers who were not selected, it’s crucial to begin evaluating next steps now. That includes identifying alternative immigration pathways, reassessing workforce planning, and preparing early for next year’s cap season, which opens in March 2026 for FY2027 roles.

Alternatives to the H-1B Cap Lottery

If your H-1B registration was not selected, you are not out of options. Here are several potential alternatives:

• O-1 Visa: For individuals with extraordinary ability in fields such as science, education, business, or the arts.
• L-1 Visa: For multinational companies looking to transfer employees from foreign offices to U.S. branches.
• TN Visa: For Canadian and Mexican nationals under NAFTA/USMCA agreements.
• Cap-Exempt H-1B: As mentioned above, some employers (such as universities or affiliated nonprofits) can still sponsor candidates regardless of the cap.
• Day 1 CPT or OPT STEM Extension: For F-1 students, these programs can help bridge the gap until the next cap season.

Strategic Planning is Key

Each year, the H-1B lottery leaves many employers and applicants in limbo. Now more than ever, it’s critical to approach the U.S. immigration system with long-term strategy and flexibility. That means evaluating whether your current or future hires qualify for cap-exempt roles, building robust internal immigration timelines, and understanding which visa types align best with your hiring goals.

Our firm is here to help. Whether you’re exploring a cap-exempt H-1B, interested in alternative visas, or preparing for FY2027, we can work with you to develop a tailored immigration roadmap that supports your goals and reduces uncertainty.

Stay Informed

To receive updates on next year’s H-1B cap season, rule changes, and visa strategy tips, we encourage employers and applicants to subscribe to USCIS updates and consult with an immigration attorney regularly. As policy and procedures evolve, staying proactive and informed is the best way to stay competitive.