The H-1B visa, frequently referred to as the “workhouse” of nonimmigration visa classifications, is available to foreign nationals who are employed or offered a specialty occupation position (a position that requires a bachelor’s degree or higher in a related academic field) in the United States. It is an oversubscribed visa category subject to an annual numerical cap. Because of that cap, for a number of years, the H-1B visa program has failed to meet employer needs.

The FY 2025 H-1B lottery season recently came to a close (June 30), marking the end of the first H-1B season under the Department of Homeland Security’s new rule, “Improving the H-1B Registration Selection Process and Program Integrity.” The rule was first proposed by the Biden Administration on October 23, 2023, and was then followed by a notice and comment period. The Final Rule was issued on February 2, 2024.

Among several changes, the rule shifted the H-1B registration process to being what the Biden Administration has described as “beneficiary-centric.” Under the new selection process, each foreign national beneficiary is registered in the H-1B lottery only once, regardless of how many potential employers register them in the lottery. In other words, under the rule, even if multiple prospective employers register the same foreign national for the H-1B lottery, the beneficiary’s name only appears on the registration list one time so as not to inflate the beneficiary’s likelihood of being selected. Each foreign national registrant is differentiated by their passport or other valid travel document information. Perhaps because of the new rule, U.S. Citizenship and Immigration Services (USCIS) reported that for FY 2025, there were an average of 1.06 registrations per beneficiary, down from 1.70 registrations per beneficiary for FY 2024—a significant decline.

The FY 2025 H-1B lottery numbers make clear that employers are continuing to rely on foreign national talent at high rates. For example, the FY 2025 H-1B lottery had 470,342 eligible registrations. Eligible registrations exclude duplicate beneficiary registrations, any registration that did not provide sufficient payment, and any registration that was later deleted by a prospective employer before the registration period closed. Approximately 120,603 of those eligible registrations were ultimately selected (representing a 25 percent selection rate).

Being selected for the lottery is only the start of the H-1B process. Those selected for the lottery had until June 30, 2024, to submit to the USCIS their Form I-129 Petition for Alien Worker together with supporting documentation. If their H-1B petition is approved by the USCIS, foreign national beneficiaries may start work on or after October 1, 2024, so long as they have a hard copy of their Form I-797 Approval Notice from the USCIS in-hand.

It is never too early to assess your future H-1B lottery plans. We advise employers to contact immigration counsel in January 2025 (or before) to begin strategizing ahead of the FY 2026 H-1B lottery.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.