H-1B Lottery Reform: What the New Registration Rules Mean for Applicants
The H-1B visa program has long been the primary pathway for U.S. employers to hire foreign nationals in specialty occupations, but the lottery system governing access to those visas has been plagued by manipulation for years. Starting with the fiscal year 2025 cap season, USCIS implemented a significant structural change: registrations are now selected by unique beneficiary rather than by the number of registrations submitted on a beneficiary’s behalf. This single shift upended the strategy that many large consulting firms and staffing companies had used to flood the system with duplicate entries.
The change stems from a final rule published in the Federal Register on January 30, 2024. Under the previous system, each registration submitted by a different employer counted as a separate lottery entry, meaning a candidate with five employers filing on their behalf had five chances to be selected. The 2024 reform collapsed that advantage entirely. Each person now gets one statistical chance regardless of how many employers register them.
How the Beneficiary-Centric Selection Model Works
Under the revised system, USCIS first identifies all unique beneficiaries across the registration pool. If a single beneficiary has multiple registrations from different employers, only one of those registrations is entered into the lottery. If that registration is selected, USCIS notifies all employers who filed for that individual, and the beneficiary and their chosen employer then proceed to file the full H-1B petition.
This model requires USCIS to match registrations to unique individuals using passport numbers and other identifying information submitted during the online registration period. Employers must file their registrations through the myUSCIS portal between early March and late March each year. For FY 2026, the registration window ran from March 7 through March 24, 2025. The $215 registration fee per beneficiary, introduced for FY 2025, remains in effect and applies whether a beneficiary has one employer or five filing on their behalf - each employer pays the fee separately.
The practical effect on large outsourcing and IT staffing firms has been measurable. In prior years, some companies submitted tens of thousands of registrations for a relatively small pool of candidates to statistically maximize selection odds. USCIS data for FY 2024 showed approximately 780,884 registrations for 188,400 eligible beneficiaries - a ratio that reflected widespread multi-registration strategies. The beneficiary-centric model directly addresses that imbalance by removing the numerical advantage those strategies provided.
What Counts as a Valid Registration
USCIS requires that each registration include the beneficiary’s full legal name as it appears on their passport, date of birth, country of birth, country of citizenship, passport number, and passport expiration date. Errors in these fields can result in a registration being rejected or, if a mismatch is detected during petition filing, complications that delay or invalidate the case.
Employers must have a valid relationship with the beneficiary at the time of registration. USCIS has signaled increased scrutiny of registrations where no bona fide job offer exists. Under 8 CFR 214.2(h)(3), an H-1B petition must be supported by a legitimate employer-employee relationship. Submitting a registration without a genuine intent to employ the beneficiary can expose the employer to fraud findings and debarment from the program.
The Cap Numbers and Preference Categories Still Apply
The structural change to the lottery does not alter the annual numerical caps. USCIS continues to allocate 65,000 H-1B visas under the regular cap each fiscal year, with an additional 20,000 reserved for beneficiaries who hold a U.S. master’s degree or higher - the so-called advanced degree exemption. The lottery runs in two stages: first, all eligible registrations compete for the full 85,000 slots; then, any advanced degree registrations not selected in the first round enter a second draw for the 20,000 advanced degree exemption slots.
Certain categories of workers are not subject to the annual cap at all. Beneficiaries employed at institutions of higher education, affiliated nonprofit entities, nonprofit research organizations, or government research organizations qualify for cap-exempt status under 8 U.S.C. 1184(g)(5)(A) and (B). Cap-exempt petitions can be filed at any time during the year and are not subject to the lottery.
Timing, Petition Filing, and Validity Periods
Beneficiaries whose registrations are selected receive notice through the myUSCIS portal. Selected employers then have a 90-day window to file the full H-1B petition, which is submitted on Form I-129, Petition for a Nonimmigrant Worker, along with supporting documentation including the Labor Condition Application certified by the Department of Labor.
For FY 2026 cap-subject petitions, USCIS began accepting filings on April 1, 2025. Standard processing times for Form I-129 under regular service have ranged from two to six months, depending on workload and service center. Premium processing, available under Form I-907, guarantees a response - approval, denial, request for evidence, or notice of intent to deny - within 15 business days for an additional fee of $2,805 as of early 2025.
An approved H-1B is generally valid for three years and can be extended for an additional three years, for a total initial period of six years. After six years, foreign nationals in the employment-based green card backlog may qualify for extensions beyond the six-year cap under the American Competitiveness in the Twenty-First Century Act (AC21), specifically under Sections 104 and 106 of that law. Section 104 allows for one-year extensions when an I-140 immigrant petition has been approved and a green card priority date is not yet current. Section 106 permits three-year extensions if the I-140 has been approved and the priority date has been current for 365 days or more without an adjustment of status application being filed.
Beneficiaries already in H-1B status who are changing employers may use the portability provisions under AC21 Section 105, which allow them to begin working for a new employer once a new H-1B transfer petition is filed, provided they have been in lawful H-1B status and the new position is in the same or a similar occupational classification.
What Employers and Beneficiaries Should Do Now
Employers should conduct due diligence before the registration window opens to confirm that each candidate has a genuine job offer in a specialty occupation. USCIS defines specialty occupation under 8 CFR 214.2(h)(4)(ii) as one that requires the theoretical and practical application of a body of highly specialized knowledge and the attainment of at least a bachelor’s degree - or its equivalent - in a specific specialty as a minimum entry requirement. Job descriptions that are too broad or that fail to establish a direct connection between the required degree and the position’s duties are common grounds for a Request for Evidence.
Beneficiaries should verify that their passport information is current and matches what their employer submits during registration. A passport expiring before the H-1B start date of October 1 can create complications, and discrepancies between the registration data and the eventual I-129 filing can trigger additional scrutiny. Employers who registered a candidate in error - for example, due to a data entry mistake - must contact USCIS to request withdrawal before the selection process runs, as corrections after selection are not straightforward.
This article provides general information only. Readers should consult a licensed immigration attorney for advice specific to their circumstances.
USCIS published a policy alert on February 2, 2024 confirming the beneficiary-centric selection methodology and clarifying how duplicate registrations are handled when passport information matches across multiple employer filings.
