H-1B Visa Cap Faces Decline as USCIS Tightens Rules and Raises Fees

In a dramatic shift that could reshape the future of skilled immigration in the United States, the H-1B visa cap registration numbers for FY 2026 have seen a steep decline. According to the latest data released by the United States Citizenship and Immigration Services (USCIS), only 358,000 registrations were submitted this season, down 26.9% from FY 2025 and more than 54% lower than FY 2024.

This sudden fall has raised eyebrows across the tech and higher education sectors, especially among Indian IT professionals and aspiring international graduates who have long depended on the H-1B program as a gateway to the American workforce.

Of the total registrations this season, only 120,141 were selected to proceed to the next stage. The H-1B program allows a maximum of 85,000 visas annually, which includes 20,000 slots earmarked for applicants with advanced degrees from U.S. institutions.

H-1B Visa: Policy Enforcement

The USCIS attributes this decline to stricter anti-fraud measures, changes in the selection process, and a sharp increase in registration fees. In an official statement, the agency noted that its proactive stance on fraud, especially duplicate entries, played a major role.

“Based on evidence from the FY 2023 and FY 2024 H-1B visa cap seasons, we undertook extensive fraud investigations, denied and revoked petitions accordingly, and continue to make law enforcement referrals for criminal prosecution,” USCIS said.

For FY 2026, the agency is also closely scrutinising applications under the new beneficiary-centric selection process, which aims to eliminate manipulation of the lottery system by unscrupulous agents and shell companies.

Another key factor is the increase in the registration fee, which surged from $10 to $250 per application. While the hike was intended to offset administrative costs, it appears to have discouraged many prospective applicants, particularly international students and early-career professionals, who are more cost-sensitive.

A Shift in the Global Migration Landscape

The changing dynamics around the H-1B visa cap are also pushing aspirants to look beyond the U.S. Countries like Australia, Germany, and the UAE are stepping in as attractive alternatives, offering smoother immigration pathways, competitive tech sectors, and friendlier visa environments.

This could have long-term consequences for American universities, which have historically attracted top international talent largely due to the perceived pathway to U.S. employment via the H-1B program.

“The ‘American Dream’ of immediate employment at a high salary with full sponsorship of an H-1B visa will elude most foreign students,” noted one immigration consultant based in New York. “We are witnessing a fundamental realignment of global migration trends.”

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