U.S. Citizenship and Immigration Services (USCIS) will soon announce the opening of the fiscal year (FY) 2027 H-1B Lottery, for new H-1Bs for Cap subject employers for H-1B start dates of 10/01/2026.

While the registration system is anticipated to be online in March as in past years, USCIS has issued a new regulation that fundamentally reshapes how H-1B cap cases will be selected, replacing the long-standing random lottery with a wage-level-based selection system, which give better odds to higher skilled, higher paid positions.

This new selection process applies to the general H-1B regular cap of 65,000 visas, as well as the U.S. advanced degree exemption (Master’s cap) of 20,000 visas. The rule is effective on February 27, 2026, which will be in time for FY 2027 H-1B Lottery.

The new selection process will operate as follows:

1. Registrants with a level 4 wage will be entered into the selection pool four times;
2. Registrants with a level 3 wage will be entered into the selection pool three times;
3. Registrants with a level 2 wage will be entered into the selection pool two times;
4. Registrants with a level 1 wage will be entered into the selection pool one time.

If you hold a US master’s degree, for example, and you have a Level III position, you will be entered into the initial 65,000 Regular H-1B Cap pool three times, and if not selected, you will then be entered into the Advanced Degree Cap pool three times.

How does this change the Employer preparation for the FY 2027 Lottery?

With the change to a wage-level-based selection system, employers must provide more information for the registration process. The job title, duties, location, and requirements that are supplied to determine the wage level for the registration need to be part of the initial registration process, and these factors must be consistent throughout process - from when the H-1B petition is filed by June 30, 2026, if selected, through the start date of October 1, 2026, at a minimum. If there is a material change in the position thereafter, an H-1B amended petition would be in order.

How does the $100,000 Entry Fee for H-1Bs Effect the H-1B Cap Lottery Cases?

The extra $100,000 entry fee placed on H-1B petitions filed on or after September 21, 2025, does not apply to change of status petitions filed within the US. This means that if someone in student status, for example, wants to try for an H-1B Cap spot to change status within the US, this extra fee does not apply. However, those in F-1 student status no longer have the flexibility, as they had in the past, to choose Consular Processing rather than to change of status within the US, because choosing Consular Processing in this circumstance would trigger the $100,000 fee.

How does the current suspension of processing of petitions and applications by USCIS For 39 countries relate to the H-1B Cap Lottery?

Effective January 1, 2026, USCIS has announced that it has paused processing of petitions and applications for those from the following countries, even if they have dual citizenship with a country that is not on the list:

Afghanistan, Angola, Antigua and Barbuda, Benin, Burkina Faso, Burundi, Chad, Congo, Cuba, Dominica, Equatorial Guinea, Eritrea, Gabon, Haiti, Iran, Ivory Coast, Laos, Libya, Malawi, Mali, Mauritania, Myanmar, Niger, Nigeria, Senegal, Sierra Leone, Somalia, South Sudan, Sudan, Syria, Tanzania, The Gambia, Togo, Tonga, Turkmenistan, Venezuela, Yemen, Zambia, and Zimbabwe.

Accordingly, if an employer registers an H-1B Cap for an employee from one of these countries, USCIS will accept an H-1B filed by June 30, 2026, if selected, but it will not approve the petition until the hold is lifted. There is no end date stated or proposed for when the hold will end. Employers and employees should plan accordingly, and Ostrom Law is committed to providing updates as they are available.

If interested in our services for filing an H-1B Cap registration for FY2027, please contact Ostrom Law Office as soon as possible for an initial discussion.