According to recent data released by U.S. Citizenship and Immigration Services (USCIS), the FY 2026 H-1B lottery achieved a nearly 35% selection rate—a significant jump compared to previous years. This shift reflects the impact of new policy reforms, a shrinking job market, and a changing political environment. These changes have profound implications for international students hoping to build their careers in the U.S. This article will analyze the key data and explore what they reveal about the current U.S. immigration landscape.
Table of Contents
Key Data from the FY 2026 H-1B Lottery
Nearly 35% Selection Rate: The Highest in 4 Year
What’s Driving the Change in H-1B Selection Rates?
Will There Be a Second-Round H-1B Lottery?
Key Data from the FY 2026 H-1B Lottery
- Employer Participation Held Steady
The number of unique employers participating in the H-1B lottery for FY 2026 remained stable at approximately 57,600, close to last year’s figure of 52,700.
- Sharp Drop in Unique Beneficiaries
For FY 2026, there were about 339,000 eligible unique beneficiaries, marking a significant decline from 442,000 in FY 2025. This drop might suggest a reduction in duplicate or potentially fraudulent submissions.
- Total Eligible Registrations Fell Nearly 27%
For FY 2026, USCIS received 343,981 eligible H-1B registrations, down 26.9% from 470,342 in FY 2025. While stricter anti-fraud measures played a role, the decline also reflects a cooling job market and growing employer hesitancy amid political uncertainty, especially with the resurgence of a hostile immigration environment caused by the Trump administration.
- One Registration Per Beneficiary Becomes the Norm
On average, there were 1.01 registrations per beneficiary in FY 2026, compared to 1.06 the previous year. This means most foreign applicants had only a single registration submitted on their behalf—showing the success of USCIS’s “One Registration per Person” policy.
Nearly 35% Selection Rate: The Highest in 4 Year
Based on historical data, the H-1B selection rate this year rose from 28.7% to 34.9% (120,141 ÷ 343,981), marking the highest rate since FY 2023.
(Source: USCIS Website)
Here is a quick look at how the H-1B selection rates have changed over the past 6 years:
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FY 2021: 46.1%
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FY 2022: 43.7%
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FY 2023: 26.9%
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FY 2024: 24.8%
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FY 2025: 28.7%
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FY 2026: 34.9%
The sharp decline in FY 2023 and FY 2024 was widely attributed to a surge in duplicate or fraudulent submissions, where multiple employers registered the same beneficiary to game the system.
The implementation of the “One Registration per Person” policy began to reverse this trend. FY 2025 saw a slight rebound to 28.7%, and by FY 2026, the selection rate jumped to 34.9%—the highest since FY 2023.
Overall, the data suggests a return to a more balanced and fair H-1B lottery system—potentially setting the stage for more predictable outcomes in the years ahead.
What’s Driving the Change in H-1B Selection Rates?
Several key factors explain the recent rise in the H-1B selection rate:
1. USCIS Crackdown on Fraudulent Registrations
The biggest driver is the beneficiary-centric selection process implemented by USCIS. Starting with FY 2025, USCIS began selecting registrations based on unique beneficiaries—not the number of employer submissions per person. This policy change directly targeted abuse in the system where a single applicant was submitted multiple times by different companies.
2. Cooling Labor Market, Especially in Tech
The U.S. tech sector, historically the largest sponsor of H-1B workers, has seen significant contraction, with over 73,000 tech workers laid off across 303 companies in 2025. Big companies like Microsoft, Amazon, and Google have led these reductions, collectively accounting for more than 61,000 job losses. This contraction has led to decreased demand for new H-1B sponsorships, contributing to the reduced number of registrations and, consequently, a higher selection rate.
This shift is reflected in registration volume:
- FY 2025: 470,342 registrations
- FY 2026: 343,981 registration
Despite a similar number of employers participating (~57,600), the pool of eligible beneficiaries fell by over 100,000, from 442,000 to 339,000, reflecting reduced sponsorship activity.
3. Political Climate Influences Employer Decisions
As the U.S. entered the 2024 election season, immigration once again became a flashpoint. With the Trump administration’s immigration stance re-entering national discourse, some companies grew wary of policy uncertainty. This likely tempered their willingness to sponsor H-1B visas.
Will There Be a Second-Round H-1B Lottery?
In previous years—such as FY 2021, FY 2022, and FY 2023—the USCIS conducted additional selection rounds because a significant number of selected applicants did not submit complete and timely petitions, leaving many H-1B visas unused. In the last year (FY 2025), the USCIS also conducted a second-round H-1B lottery in August.
The 34.9% selection rate this year is already relatively high compared to recent years, and the total number of eligible registrations (343,981) is down significantly from FY 2025 (470,342). This means fewer excess registrations are available to fill unused slots if selected applicants drop out.
If USCIS does conduct a second-round lottery, it typically happens between late July and early August. Employers and attorneys should monitor their myUSCIS accounts for updates during that time.
What to Do if not Selected?
If you were not selected in the FY 2026 H-1B lottery, don’t panic—there are still viable paths to stay and work in the U.S.:
- Day 1 CPT Programs: Enroll in a qualified master's or doctoral program that allows immediate work authorization through Curricular Practical Training (CPT).
- Cap-Exempt H-1B: Consider jobs with universities, research institutions, or nonprofits not subject to the lottery:
- L-1 Visa: Transfer to a U.S. office of your current employer if you have worked abroad for at least one year.
- O-1 Visa: For individuals with extraordinary ability in fields like science, education, or the arts.
Working in the U.S. without H-1B: 8 Alternative Options to H-1B Visa
Conclusion
The jump to a 34.9% H-1B selection rate in FY 2026 marks a significant shift in the U.S. immigration landscape. However, the future remains uncertain, with a shifting job market and evolving political climate both influencing outcomes. For those not selected, exploring alternatives like Day 1 CPT, O-1, or L-1 visas is essential for maintaining legal status and advancing career goals in the U.S.
As the situation continues to evolve, staying informed and proactive has never been more important.
