H-1b saw major drop to 3-year low: What it means for Indian professionals

H-1b visa applications for FY2026 have fallen to 358,737, a 25% decline from FY2025, with Indian professionals particularly affected.

The number of H-1b visa applications for FY2026 has dropped sharply to 358,737 — a 25% decline from the previous year,  reaching its lowest point since FY2022. 

The decline in H-1B applications is attributed to economic slowdown and increased registration fees, leading companies to adopt a conservative approach.(shutter stock)

United States Citizenship and Immigration Services (USCIS) shows only 120,141 candidates have been shortlisted, a 27% drop from FY2025. Of these, 85,000 skilled worker visas will be issued.

Indian professionals, who have historically made up over 70% of H-1B recipients, are feeling the squeeze more than most.

The decline is due to a mix of factors: rising visa costs, a sluggish US economy, layoffs across major tech firms, and tighter immigration regulations that began during Donald Trump 2.0. The application fee alone jumped from $10 to $215, making companies more cautious in filing.

How new H-1b policies affecting Indian professionals

Indians, who have consistently dominated H-1B visa issuances — receiving over 70% of these annually — are feeling the impact the most. In FY2023, Indians received 68,825 initial H-1B employment visas and over 21K extensions. The USCIS has now implemented a “beneficiary-centric” system aimed at curbing fraud, adding more layers to an already rigorous process.

The new beneficiary-centric selection process, introduced by USCIS to curb fraud and level the playing field, is designed to select individuals rather than employers, reducing duplicate entries. 

“Mission India's Consular Affairs and Diplomatic Security Service work every day across our Embassy and Consulates to actively identify and target those engaged in facilitating illegal immigration and human smuggling and trafficking operations,” the State Department said as they are trying to curb fraud.

“The Department of State is taking steps today to impose visa restrictions on owners, executives, and senior officials of travel agencies based and operating in India for knowingly facilitating illegal immigration to the United States.”

USCIS says it has increased fraud investigations and is reviewing FY25 and FY26 data to prevent misuse.

Notably, with fewer applications and lower selection odds, countries like Canada, Germany, and the UAE have become increasingly attractive alternatives.