H-1B FY2027 Cap Reached: First Wage-Weighted Season, No Second Lottery

What Happened

USCIS [announced on July 17, 2026](https://www.uscis.gov/newsroom/alerts/uscis-reaches-fiscal-year-2027-h-1b-cap) that it has "received enough petitions to reach the congressionally mandated 65,000 H-1B visa regular cap and the 20,000 H-1B visa U.S. advanced degree exemption, known as the master's cap, for fiscal year 2027." The combined 85,000-visa cap is now filled.

No second or supplemental lottery will be held for FY2027. This is the second consecutive year USCIS has filled the cap in a single round — [FY2026 also required no second lottery](https://www.uscis.gov/newsroom/alerts/uscis-reaches-fiscal-year-2026-h-1b-cap). By contrast, both FY2024 and FY2025 required supplemental selection rounds after the initial lottery failed to generate enough filed petitions.

The announcement closes out the first-ever cap season under DHS's wage-weighted selection system, which [took effect on February 27, 2026](https://www.govinfo.gov/content/pkg/FR-2025-12-29/pdf/2025-23853.pdf). The new system replaced the prior random lottery with a weighted process that gives higher-paid positions better odds of selection.

By the Numbers: First Wage-Weighted Season Results

The wage-weighted lottery's first outing produced a dramatic shift in both registration volume and the composition of selected beneficiaries. USCIS [released initial data in May 2026](https://www.fragomen.com/insights/united-states-h-1b-cap-is-reached-for-fy-2027.html) showing 211,600 properly submitted registrations — down 38.5% from 343,981 in FY2026 and down sharply from the record 758,994 in FY2024.

The selection skew toward higher-credentialed, higher-paid workers was pronounced. Of selected beneficiaries, 71.5% hold a U.S. advanced degree, up from 57% in FY2026. Only 17.7% of selected registrations fell in the lowest wage category (OEWS Level I), reflecting the system's design intent.

• Level IV (highest wage): 4 lottery entries per registration
• Level III: 3 entries — private firm data from Boundless Immigration suggests roughly 68% selection rates at this level
• Level II: 2 entries
• Level I (entry-level): 1 entry — Boundless data suggests roughly 40% selection rates, a 28-percentage-point gap versus Level III

Who's Affected

The cap-met announcement has direct implications for several groups across the H-1B ecosystem.

• Selected FY2027 beneficiaries with approved petitions: Employment may begin October 1, 2026. Ensure your employer has received the approval notice and confirm your start date.
• Registrants who were not selected: Your registration does not carry over. You must submit a new registration during the FY2028 cap season, expected to open in spring 2027.
• Cap-exempt employers (universities, nonprofit research organizations, government research organizations): You are not affected by this announcement. Cap-exempt H-1B petitions continue to be accepted year-round.
• Employers offering Level I wages: The wage-weighted system significantly reduced selection odds for entry-level positions. A government regulatory analysis estimates approximately 5,193 small businesses — about 30% of the roughly 17,069 small employers using the H-1B program — could be disadvantaged under the new system.
• Current H-1B holders seeking extensions, transfers, or amendments: These are not cap-subject filings and are unaffected. USCIS continues to accept them on a rolling basis.

What Attorneys Should Know

The wage-weighted lottery operates under a DHS final rule published December 29, 2025 (90 FR 60864, RIN 1615-AD01), effective February 27, 2026. The rule assigns each cap-subject registration a number of weighted entries equal to the beneficiary's DOL prevailing wage level (OEWS Level I through IV) for the relevant SOC code and area of employment. If multiple registrations exist for the same beneficiary, USCIS uses the lowest wage level among them — an anti-gaming provision attorneys should flag for clients considering parallel filings.

This mechanism is distinct from the vacated 2020 Trump-era wage-rank rule, which would have strictly rank-ordered selections by wage level rather than weighting lottery odds. The current rule preserves a probabilistic selection framework while tilting it toward higher compensation.

The separate $100,000 H-1B fee — imposed by a September 2025 Presidential Proclamation on certain consular-notification petitions — remains in legal limbo. A federal court in the District of Massachusetts [vacated the fee nationwide on June 8, 2026](https://haven-five-hazel.vercel.app/blog/federal-court-vacates-100000-h1b-fee-2026), finding it constituted an unlawful tax and violated the APA. That ruling was stayed on June 12, 2026 pending government appeal, meaning USCIS can continue to collect the fee during the appeal. Attorneys should monitor First Circuit proceedings closely.

For FY2028 planning, counsel should note that premium processing for cap-subject petitions is available at a fee of $2,965 (increased from $2,805 for requests postmarked March 1, 2026 or later), with a 15-business-day service guarantee. The FY2028 registration period is expected to open in spring 2027, likely March, though USCIS has not yet confirmed the specific date.

What Applicants Should Do

Your next steps depend on where you stand in the FY2027 cycle — or whether you're planning ahead for FY2028.

• If your petition was approved: Confirm your October 1 start date with your employer. Ensure your I-797 approval notice is on file and coordinate any travel plans around your employment authorization date.
• If your petition is still pending: Continue to monitor your case status on myUSCIS. If you filed a premium processing request, expect action within 15 business days of receipt. Contact your attorney if you receive a Request for Evidence (RFE).
• If you were not selected in FY2027: Check your myUSCIS account for a 'Not Selected' status. Your registration does not carry over — you will need a new employer registration for FY2028. Start conversations with your employer now about FY2028 strategy, especially around wage-level positioning.
• If you're an entrepreneur or startup founder: The January 17, 2025 H-1B modernization rule expressly recognizes beneficiary-owned petitioners under 8 C.F.R. § 214.2(h)(4)(ii)(4). You can petition through a startup you control, provided it meets employer requirements. However, DOL prevailing wage rules apply in full — the wage level on your LCA will directly affect your lottery odds under the weighted system.
• If your current H-1B is nearing expiration: Extensions and employer-change petitions are not cap-subject and can be filed at any time. Explore cap-exempt options (university affiliation, nonprofit research) if your situation allows.

FY2027 Timeline Recap

The full FY2027 H-1B cap season — the first under wage-weighted selection — proceeded on the following timeline:

• February 27, 2026: Wage-weighted selection rule takes effect
• March 4–19, 2026: Online registration window ($215 registration fee)
• March 31, 2026: USCIS completes initial selection process and notifies selected registrants
• April 1 – June 30, 2026: Petition filing window for selected registrants
• July 17, 2026: USCIS announces full 85,000 cap has been reached — no second lottery
• October 1, 2026: Earliest employment start date for approved FY2027 petitions
• Spring 2027 (likely March): FY2028 registration window expected to open