On December 29, 2025, the U.S. Department of Homeland Security published a final rule amending the H-1B cap process. Congress mandates an annual cap for new H-1B visas each fiscal year, including 20,000 H-1B visas for individuals who hold a U.S. Master’s or higher degree (Advanced Degree Cap); and 65,000 H-1B visas for individuals who hold at least a Bachelor’s degree or equivalent in a specialty field (Regular Cap).
In total, there are 85,000 new H-1B visas authorized each year. When demand exceeds the number of visas available, USCIS runs a random, computer-generated cap registration process (commonly known as the “lottery”) to determine who is selected. The lottery is conducted via an online initial registration system.
Under the existing H-1B cap lottery process, employers submit basic biographic information for each beneficiary registrant and indicate if the beneficiary holds a U.S. Master’s or higher degree. Unique beneficiaries are selected at random for the 65,000 new H-1B visas available in the Regular Cap and then the 20,000 new H-1B visas available in the Advanced Degree Cap. The final published rule amends the H-1B cap lottery process in the following ways:
1. Employers must select the Standard Occupational Classification (SOC) code and area of intended employment at the time of registration
The SOC system is used to classify proposed roles into occupational categories. It is determined based on the day-to-day duties for the proposed role. While previously reserved for the Labor Condition Application – a mandatory filing within the H-1B petition process – the new rule will now require employers to determine the SOC assignment at the time of cap registration. Employers must also indicate where the beneficiary will work.
2. Higher wage levels will have an increased chance of selection
The new lottery system will also incorporate weighted selections based on the Department of Labor (DOL) wage level for the beneficiary’s proposed role. Each SOC code has four wage levels assigned based on the minimum requirements for the position. A higher-level position requiring more experience or education aligning to a higher wage level means more entries in the selection pool, and therefore an estimated increased probability of selection. Note that these increased probabilities are based on the H-1B lottery data from the last few years. The new $100,0000 requirement for H-1B beneficiaries who are not physically in the U.S. could also change the number of beneficiaries entered into the lottery and this data.
For example, beneficiaries who hold a U.S. Master’s or higher degree sponsored for a proposed role with requirements consistent with the DOL Level IV wage, will be entered into the Regular H-1B Cap pool four times. If they are not selected, they will then be entered into the Advanced Degree Cap pool four times.
3. Private wage surveys must select “wage level I” on the registration form
When a beneficiary’s proffered salary does not align with the DOL’s wage data, private wage surveys may be used to confirm that the proffered salary is within market expectations. If an employer uses a private wage survey for an H-1B cap beneficiary, they must select “wage level I” on the registration form. This means the beneficiary will only be entered into the Advanced Degree Cap and/or Regular Cap selection pool one time each.
4. Occupational code and wage level will be added to the Form I-129
After the selections are announced, employers generally have between April and June 30 to file the H-1B petition with U.S. Citizenship & Immigration Services (USCIS) on behalf of each selected beneficiary. The new rule adds questions for employers to answer on the H-1B petition forms. Employers must indicate the wage level and SOC code on the relevant forms and submit evidence of the basis of the wage level indicated on the registration.
5. The final rule will be effective for the upcoming 2026 H-1B cap lottery registration and selection
The effective date of the new rule is February 27, 2026. The online H-1B cap lottery typically opens for the two-week registration window in early March and selections are usually made and announced by USCIS at the end of March. Employers should plan to submit their 2026 H-1B cap lottery registrations based on the structure of the new rule.
Conclusion
Higher level positions, requiring more experience and commanding a higher-level salary, will generally have a higher chance of selection under this new lottery procedure. Employers should carefully consider how their wage level policies will impact sponsored employees under this new rule.
