US H-1B visa registration drops 30–50% after new rules: What does it mean for industry?

The registration process of H-1B visa for FY27 experienced a sharp decline, falling between 30 per cent and 50 per cent lower than last year, according to immigration attorneys. The registration process, which was closed on March 19, indicates growing caution among employers due to the higher visa fees and changes to the lottery system, which also now gives preference to higher wages earlier models fell short.

The decline has affected major IT outsourcing firms and startups. However, experts stated that the revised rules are creating opportunities for Mid-tier IT companies that are ready to pay higher salaries for specialised talent, according to a report by The Economic Times.

They also benefit smaller firms that previously struggled due to bulk applications from large outsourcing companies, as well as US master’s degree holders, who now have a stronger edge under the wage-based selection system.

“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," said Shilpa Malik, managing attorney at VisaNation Law Group.

Additionally, immigration experts noted that employers are increasingly focusing on offering higher wages to maximise selection chances. The development marks a shift from the past years, when companies often submitted large volumes of applications without prioritising salary levels. For FY26, the US Citizenship and Immigration Services (USCIS) received 336,153 eligible registrations.

What does this declining H-1B visa registration mean for industry?

The revised system marks a significant shift in H-1B hiring patterns. First, is that the large outsourcing firms may see a decline in their dominance in the lottery process. The second indicates that the mid-sized IT companies could gain an advantage by focusing on high-skilled, higher-paid talent. And the third is that the graduates in the US with advanced degrees are likely to benefit the most under the new structure.

For many employers, this shift reflects both the increasing cost of H-1B applications, estimated at around $100,000 for new filings, and the need to adjust to a more selective system that prioritises higher wages.