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H-1B visa registrations see decline for FY 2027: Here's who stands to benefit
H-1B visa registrations for fiscal year 2027 have declined by 30-50%, affecting large IT firms and startups.
H-1B visa registrations for the fiscal year 2027 have experienced a significant decline, with estimates showing a decrease of 30 to 50 percent in filings compared to the previous year. This downturn coincides with the closing of the application window, highlighting a change in employer behavior in light of the updated regulations.
Although large IT outsourcing companies and start-ups have been particularly affected by this decline, immigration specialists assert that these changes are also transforming the employment landscape, thereby creating new opportunities for smaller and mid-sized businesses.
Also Read: H-2B visa cap exhausted for 2026: Check eligibility and filing dates for supplemental slots
H-1B: Companies to refrain from applying for visa
The reduction in registrations is attributed to a more cautious stance adopted by employers this year. According to The Economic Times, numerous companies opted to refrain from applying due to increased visa fees and uncertainty regarding modifications to the lottery system.
Shilpa Malik, managing attorney at VisaNation Law Group, mentioned in an interview with the Economic Times that she witnessed a decrease in filings of approximately 50 percent compared to the previous year, while other legal professionals estimated the decline to be around 30 percent.
H-1B visa: Who will benefit?
The updated system seems to be advantageous for a distinct group of applicants and employers.
People holding a Master’s degree in the US are anticipated to reap the greatest benefits, alongside mid-sized companies that are prepared to provide elevated salaries for specialized positions. Additionally, smaller enterprises, which previously faced challenges due to the influx of applications from large outsourcing firms, are also expected to experience enhanced opportunities.
“Previously, these companies were often discouraged by the diluted odds created by large outsourcing firms. Now that the playing field is level, they feel they have a legitimate, fair shot at securing talent,” Malik told Economic Times.
She mentioned that Master’s degree holders in the US are likely to gain the most from the Master’s cap and a transition towards higher-skilled, more lucrative roles.
What's next
The United States Citizenship and Immigration Services (USCIS) expected to inform chosen applicants by March 31, 2026, via their online accounts.
Each year, the United States grants 85,000 H-1B visas within its annual limit, comprising 65,000 for specialized occupations that necessitate at least a bachelor’s degree, along with an extra 20,000 set aside for applicants holding a master’s degree or higher from a US institution.
