Analyzing the FY 2027 Lottery Data and the Impact of the $100,000 Fee

USCIS has released the data from the initial selection round of the FY 2027 H-1B cap lottery, and the numbers reveal a significant shift in employment-based immigration trends. The combination of the new weighted, wage-based selection process and the implementation of the $100,000 fee for offshore hires has noticeably altered employer filing strategies.

Rather than the high volume of registrations seen during the post-COVID period, the data indicates a return to more normalized filing levels. Here is a breakdown of what the FY 2027 selection data tells us.

Normalizing Registration Volumes

Just a few years ago, the lottery system saw a record-breaking 780,000+ registrations, driven largely by tech industry growth and entities submitting multiple registrations for the same beneficiary. The FY 2027 data shows a marked departure from that trend.

By tying selections to a unique beneficiary’s passport rather than the number of employer entries, USCIS successfully mitigated the incentive to submit multiple registrations for a single candidate.

The increase in the electronic registration fee from $10 to $215 also created a more tangible financial threshold, encouraging employers to be more selective and submit registrations only for candidates they are fully committed to hiring.

FY 2027 also marked the first time USCIS utilized the new weighted selection process. Under this system, a beneficiary’s odds of selection are directly tied to the Department of Labor (DOL) Occupational Employment and Wage Statistics (OEWS) level that their offered salary meets.

• Level IV Wage Offers: Received four entries in the selection pool.

• Level III Wage Offers: Received three entries.

• Level I (Entry-Level) Offers: Received only one entry.

As anticipated, the selection data reflects a heavy preference for mid-to-senior level talent. Employers who intentionally budgeted to push proffered salaries into the Level III or Level IV brackets saw significantly higher selection success rates, while entry-level F-1 student selections became more competitive.

The $100,000 Fee and Strategic Adjustments

While the weighted lottery changed who was selected, the September 2025 Presidential Proclamation changed where employers are realistically able to look for talent.

The proclamation established a $100,000 payment requirement for any new H-1B petition filed for a beneficiary located abroad. However, Change of Status filings for beneficiaries already in the United States are exempt from this fee. The fee, combined with the weighted lottery, has transitioned corporate hiring strategies for new talent.  High-volume foreign recruitment is no longer financially viable for most companies since a single offshore hire now requires a six-figure investment before onboarding begins.  This reality will lead employers to prioritize U.S.-educated F-1 visa-holder students on OPT and STEM OPT who are currently residing in the U.S.

The combination of the weighted lottery and the offshore fee has created a landscape that requires highly strategic sponsorship. To stay competitive in upcoming cap seasons, employers should consider adjusting their recruitment and hiring approaches:

• Target U.S. Graduates in Specialty Occupations: Because F-1 candidates in the U.S. avoid the $100,000 fee, competition for domestic talent will only intensify. Identify F-1 workers in your pipeline early and maximize their STEM OPT windows.

• Budget for Wage Level Adjustments: To secure a lottery selection under the weighted system, compensation strategies must align closely with immigration strategies. Evaluate wages to assess whether a higher wage level can be met to ensure your most critical candidates have an increased chance of selection.

• Explore Alternatives for Offshore Talent: The H-1B may no longer be the default mechanism for bringing talent into the U.S. from abroad. Employers should evaluate L-1 intracompany transferees, O-1 extraordinary ability visas, and TN or E-3 visas where applicable.

Ultimately, the H-1B program is currently functioning in alignment with recent regulatory goals: prioritizing higher-compensated, highly skilled professionals while managing overall volume. Employers will now need to plan their budgets and candidate pipelines accordingly.