H-1B registrations drop sharply for FY27, new rules reshape visa chances

H-1B visa registrations for fiscal year 2027 have seen a sharp decline of 30–50% compared to the previous year, signalling a significant shift in employer behaviour under revised US immigration rules.

The drop comes as companies adopt a more cautious approach due to increased visa costs and uncertainty surrounding changes to the selection process. Many employers, particularly large IT outsourcing firms and startups, have either reduced applications or refrained from filing altogether this year.

The H-1B visa programme, which allows US companies to hire foreign professionals in specialised roles, remains capped at 85,000 visas annually. However, the latest decline in registrations suggests a shift in hiring strategies as policy changes begin to take effect.

Experts say the new system is reshaping the competitive landscape. With fewer bulk applications from large firms, smaller and mid-sized companies are expected to gain better access to the visa pool. These firms, which previously struggled to compete with high-volume filings, may now see improved chances of securing talent.

At the same time, candidates with higher qualifications, especially those holding a master’s degree from US institutions, are likely to benefit the most. The evolving selection process increasingly favours higher-skilled and higher-paid roles, giving such applicants an edge.

The changes also align with broader reforms to the H-1B system, including a shift towards wage-based selection and higher application fees. These measures are aimed at prioritising top talent while discouraging excessive or low-cost hiring practices.

The US Citizenship and Immigration Services (USCIS) is expected to notify selected applicants by March 31, 2026, following the closure of the registration window earlier this month.

While the reduced number of applications may ease competition, the tightening rules indicate a more selective and structured visa regime going forward, with implications for both global talent mobility and hiring strategies of companies dependent on foreign workers.