2026 H1B Cap Closed: USCIS Confirms No Second FY2027 Lottery, Consider EB-3 Alternatives

U.S. Citizenship and Immigration Services (USCIS) announced on July 17, 2026 that it has received sufficient petitions to fill both the congressionally mandated 65,000 H-1B regular cap and the 20,000 U.S. advanced degree (master's cap) exemption for fiscal year 2027. As a result, USCIS will not conduct a second lottery selection round for FY2027, closing the H-1B cap season earlier than in some prior years. In previous fiscal years, USCIS occasionally ran additional lottery rounds when initial petition volumes fell short of available cap numbers. FY2027 marks a departure from that pattern, signaling continued high demand for H-1B visas among employers and foreign nationals. For foreign nationals not selected in the lottery — including those in F-1 status working under Optional Practical Training (OPT) or STEM OPT — this development requires immediate attention to employment authorization end dates and cap-gap implications. Individuals in this situation should consult with immigration counsel to assess alternative visa categories before current status or work authorization expires. Employers should now evaluate alternative immigration strategies for key employees who were not selected. Employment-based options such as EB-3 classification may be worth exploring for workers in skilled, professional, or unskilled roles, depending on the individual's qualifications and the employer's ability to sponsor a PERM labor certification. The closure of the FY2027 H-1B lottery reinforces the importance of long-term immigration planning. Employers and foreign nationals unable to secure H-1B status should begin assessing EB-3 or other employment-based pathways now to avoid status gaps and position themselves ahead of future filing deadlines.