On July 17, 2026, USCIS announced that it has received a sufficient number of petitions to reach the congressionally mandated FY 2027 H-1B cap, including the 65,000 regular cap and the 20,000 exemption for beneficiaries holding U.S. advanced degrees. Critically, USCIS confirmed it will NOT run a second selection lottery for FY 2027. For employers and foreign professionals whose registrations were not selected, the cap-subject door is now closed until FY 2028.
By way of background, the FY 2027 electronic registration period closed in late March 2026, with initial selections announced on March 31, 2026. Selected registrants had a filing window from April 1 through June 30, 2026, and FY 2027 employment begins October 1, 2026. This was the first cap year conducted under the new weighted selection process, which favors registrations at higher Department of Labor wage levels. The data shows a dramatic shift: registrations fell 38.5% year over year, from 343,981 for FY 2026 to 211,600 for FY 2027; 71.5% of selected beneficiaries hold U.S. advanced degrees; and only 17.7% of selections were at the lowest wage level. The message is clear — higher wage levels now materially improve selection odds.
Importantly, the cap announcement does not affect petitions that are exempt from the annual limits. Employers may still file extensions of stay, amended petitions, changes of employer for current H-1B holders, and concurrent employment petitions. Cap-exempt employers — institutions of higher education, related or affiliated nonprofits, and nonprofit or governmental research organizations — may sponsor new H-1B workers at any time.
For candidates who missed out, unselected registrations do not carry over. The next chance is the FY 2028 registration period, expected around March 2027. That timeline makes immediate planning essential. Employers should audit which key candidates were not selected and evaluate alternatives now: L-1 intracompany transfers for employees with qualifying time abroad; O-1 for individuals with strong achievement records; TN, E-3, or H-1B1 where nationality fits; cap-exempt employment arrangements; and maximizing the F-1 STEM OPT runway to preserve work authorization through the next cycle. For especially strong profiles, it may make sense to bypass H-1B altogether and pursue EB-1A or an EB-2 National Interest Waiver directly.
Looking ahead to FY 2028, the weighted selection system changes the strategic calculus. Offering market-competitive salaries that support higher wage-level classifications is no longer just a compliance issue — it directly and materially improves the odds of selection. Employers should begin candidate identification, role structuring, and compensation benchmarking well before the March 2027 registration window opens.
The Peng Law is advising employers and professionals on post-cap alternatives and FY 2028 planning. If your candidate was not selected, do not wait — the strongest outcomes come from acting now. Contact our team for a case-specific strategy assessment.