Immigration Fees Prompt Decline

Introduction to H-1B Visa Registrations

The U.S. Citizenship and Immigration Services (USCIS) seal is displayed on a mobile phone screen. H-1B cap registrations declined this year, but U.S. Citizenship and Immigration Services still rejected almost two-thirds of applications due to the low annual H-1B limit. Higher immigration fees and other factors contributed to the drop in registrations for FY 2026. An H-1B visa is often the only practical way a high-skilled foreign national, including an international student, can work long term in the United States. The H-1B visa category remains the most restrictive in the U.S. immigration system.

USCIS Results Show Impact Of Immigration Fees And Annual Limit

USCIS released H-1B cap results for FY 2026 that showed a decline in registrations. The immigration service makes selections by lottery in any year the agency receives more H-1B electronic registrations than permitted by the annual limit. The H-1B annual limit is 65,000 plus a 20,000 exemption for individuals with an advanced degree from a U.S. university. For the past two decades, employers have exhausted the quota every year.

For FY 2026, USCIS received 343,981 eligible registrations, a decline of 27% from 470,342 for FY 2025. Higher immigration fees likely contributed to the drop in H-1B registrations. A Biden administration fee rule raised the cost of filing an H-1B registration for FY 2026 from $10 to $215.

Factors Contributing to the Decline in Registrations

“With the higher fee this year, employers had to make a more informed economic decision about how many employees to enter into the lottery,” said Kevin Miner of Fragomen. “That being said, we continued to see very high demand, and regardless of the decrease in registrations, many people who need H-1B status still were not selected.” The number of unique employers increased, going from approximately 52,700 for FY 2025 to 57,600 for FY 2026, a rise of 9%. However, H-1B registrations filed per employer declined. For FY 2026, employers filed an average of 6.0 eligible registrations, a decline of 33% from 8.9 eligible registrations per employer for FY 2025, according to a National Foundation for American Policy analysis.

Immigration Restrictions Continue To Limit The Ability To Hire Foreign-Born Talent

Despite the lower number of H-1B registrations, nearly two-thirds were rejected due to the annual limit of 85,000. USCIS selected 120,141 registrations out of 343,981, or 35%. That means the agency rejected 65% of registrations because of the numerical limit. USCIS selects more than 85,000 registrations to account for denials and withdrawn or abandoned applications.

Only 85,000 new H-1B visa holders will begin work in FY 2026 for cases that count against the annual limit. That means only 25% of the 343,981 eligible registrations will result in new H-1B workers for companies in FY 2026, up from 20% in FY 2025. Still, according to an NFAP analysis, the H-1B visa category remains the most restrictive. In FY 2024, the State Department approved 89% of J-1 visas for exchange visitors and 96% of H-2A visas for agricultural workers.

Impact on Employers and Foreign-Born Talent

A European teenager is three times more likely to get a visa to work at a summer amusement park than a graduate student is to receive H-1B status to work for a U.S. company on artificial intelligence. In recent months, the State Department has revoked or threatened to revoke thousands of visas for international students.

“There are still a lot of individuals who have been entered into the lottery multiple times that have not been selected, so employers need to continue to look at their foreign national population, including recent hires who might have two or three years of Optional Practical Training still available to them, and get lottery entries in next March to maximize the chances of being selected,” said Kevin Miner.

Research by economist Britta Glennon concluded that immigration laws restricting H-1B visas result not in more employment for U.S. workers but more jobs leaving the United States. According to attorney Vic Goel, “The overall shortage of H-1B visas continues to pressure employers to explore alternatives, whether through other visa categories or offshoring.”

Conclusion

The decline in H-1B registrations for FY 2026 can be attributed to various factors, including higher immigration fees and the annual limit. Despite the decrease in registrations, the H-1B visa category remains the most restrictive, with nearly two-thirds of applications being rejected due to the numerical limit. Employers and foreign-born talent continue to face challenges in the U.S. immigration system, with many individuals being forced to explore alternative options or face rejection.

FAQs

1. What is the H-1B visa annual limit?
   The H-1B visa annual limit is 65,000 plus a 20,000 exemption for individuals with an advanced degree from a U.S. university.
2. How many H-1B registrations were received by USCIS for FY 2026?
   USCIS received 343,981 eligible registrations for FY 2026.
3. What is the percentage of H-1B registrations that were rejected due to the numerical limit?
   65% of H-1B registrations were rejected due to the numerical limit.
4. How many new H-1B visa holders will begin work in FY 2026?
   Only 85,000 new H-1B visa holders will begin work in FY 2026 for cases that count against the annual limit.
5. What is the impact of immigration laws restricting H-1B visas on U.S. employment?
   Research by economist Britta Glennon concluded that immigration laws restricting H-1B visas result not in more employment for U.S. workers but more jobs leaving the United States.