H-1B Lottery Reform: What the New Registration Rules Mean

The H-1B visa program allows US employers to sponsor foreign workers in specialty occupations requiring at least a bachelor’s degree or its equivalent. For fiscal year 2025 and beyond, USCIS implemented significant changes to the electronic registration process, altering how beneficiaries are selected and how employers must verify the workers they register. These changes affect every company that relies on the program, from large technology firms to small professional services businesses.

The core of the reform centers on a shift from employer-based selection to beneficiary-centric selection. Under the old system, each employer registration for a single worker counted as one entry. Under the new rule, each unique worker registered counts as one entry regardless of how many employers file on that worker’s behalf. This change was designed to reduce the inflation of the lottery pool caused by staffing companies and consulting firms submitting multiple registrations for the same individual.

This article is for general informational purposes only. Consult a licensed immigration attorney for advice specific to your situation.

How the Beneficiary-Centric Selection Model Works

Under the previous system, a worker could legitimately receive multiple lottery entries if several employers each filed a registration on their behalf. This meant that candidates with multiple sponsoring employers had statistically better odds of selection, which USCIS determined created an uneven and manipulable process. The final rule published in the Federal Register on January 30, 2024 formalized the beneficiary-centric selection approach for the FY2025 cap season.

In practice, the new model works as follows: if three employers each register the same worker, that worker still receives only one entry in the lottery. If selected, all three employers receive notification and can then file an H-1B petition for that worker. USCIS uses the worker’s passport number and date of birth as the unique identifiers to detect duplicate registrations within the system. Employers submitting registrations are required to certify that they have a legitimate job offer and a bona fide employer-employee relationship with the prospective worker.

The registration window for FY2025 ran from March 6 to March 22, 2024. USCIS announced selection results through online accounts, giving employers and attorneys access to the outcome before the April 1 petition filing date. The FY2026 registration period followed a similar structure, with USCIS opening the window in early March 2025. Employers who do not have a USCIS online account must create one before they can participate in registration, as paper-based registration is not permitted.

What Changed With Fraud Prevention and Penalties

One of the documented problems with the pre-reform lottery was the prevalence of fraudulent registrations. USCIS reported in its FY2023 H-1B data that it had identified hundreds of cases where related entities submitted multiple registrations for the same worker to game the statistical odds. The January 2024 final rule introduced new provisions under 8 CFR 214.2(h) to address this directly.

USCIS can now deny or revoke H-1B petitions where it finds the registration was submitted to unfairly increase chances of selection. Employers found to have submitted frivolous or fraudulent registrations can be barred from participating in future H-1B registration periods. The rule also grants USCIS authority to conduct post-selection audits and issue Requests for Evidence specifically probing the legitimacy of the employer-employee relationship at the time of registration, not just at the time of petition filing.

Beyond the fraud provisions, USCIS added a requirement that employers attest to a legitimate job offer at the time of registration. Previously, no such attestation was required during the registration stage. The attestation does not guarantee a petition will be approved, but it creates a formal record that USCIS can use in any subsequent review. Misrepresentation at the registration stage can now support a finding of fraud under INA § 212(a)(6)(C), which carries serious long-term immigration consequences for both the employer and the beneficiary.

Practical Implications for Employers and Workers

For employers, the most immediate change is workflow-related. Human resources teams and legal counsel must confirm the legitimacy of each job offer before the registration window opens, rather than treating registration as a low-stakes preliminary step. Since the registration fee is $215 per beneficiary for FY2026 (increased from $10 under the prior structure as part of the FY2025 fee rule), submitting speculative registrations also carries a direct financial cost.

The $215 fee is nonrefundable regardless of whether the registration is selected. For companies registering dozens or hundreds of workers, this represents a meaningful budget line that did not exist before. The registration fee is separate from the I-129 petition fees, which themselves increased substantially under the fee rule that took effect on April 1, 2024. The base filing fee for an H-1B petition filed by an employer with 26 or more full-time equivalent employees is now $730, up from $460.

For workers, the beneficiary-centric model can be either an advantage or a disadvantage depending on circumstances. A candidate with multiple serious job offers no longer gains a statistical edge by having multiple employers register on their behalf. However, if a worker is selected under one employer’s registration and that employer’s petition is later denied or withdrawn, the worker may not have an approved petition from another employer even if that employer also registered them. Workers should confirm in advance with all sponsoring employers whether each intends to file a full I-129 petition if registration is selected.

The Cap Numbers and What They Mean Going Forward

The H-1B annual cap remains at 65,000 visas for the regular cap, with an additional 20,000 available for beneficiaries who hold a US master’s degree or higher. These numbers have not changed under the reform. What has changed is the selection sequence: USCIS first runs the master’s cap lottery from the full pool of advanced degree registrations, and those not selected in that round are added to the general cap pool for a second draw.

Given that the FY2025 registration period received approximately 470,000 registrations for roughly 85,000 available slots, the odds of selection remain below 20 percent for most registrants. The beneficiary-centric model did reduce duplicate entries in the pool compared to prior years, but the underlying demand for H-1B visas continues to far exceed supply. USCIS has not proposed any legislative change to increase the cap, which would require an act of Congress.

Employers who miss the initial registration window have very limited options within the same fiscal year. Cap-exempt employers - including institutions of higher education, nonprofit research organizations, and government research organizations as defined under INA § 214(g)(5) - can file H-1B petitions at any time without participating in the lottery. Workers already holding H-1B status with a cap-exempt employer can transfer to a cap-subject employer through a standard portability transfer without entering the lottery, provided the transfer meets the requirements under INA § 214(n).

Preparing for the Next Registration Period

The FY2026 H-1B registration period opened on March 7, 2025, and closed on March 24, 2025. USCIS began sending selection notifications via online accounts shortly after the close of the window. Employers whose registrations were selected had until June 30, 2025 to file complete I-129 petitions, though USCIS can adjust this deadline and publishes specific dates on its official website at uscis.gov.

For those planning ahead for FY2027, the registration window will again open in early March 2026. Employers should ensure their USCIS online accounts are active and that any organizational changes - mergers, name changes, EIN updates - are reflected in their account profiles before the window opens. Registration submitted under an incorrect entity name can complicate petition adjudication even after a successful selection.

The single most actionable step for an employer preparing now is to conduct an internal audit of anticipated H-1B needs for FY2027, identify which positions meet the specialty occupation standard under 8 CFR 214.2(h)(4)(ii), and confirm that prevailing wage determinations are current. The Department of Labor’s iCERT system is the starting point for any employer intending to file a Labor Condition Application, which must be certified before the I-129 can be submitted.