USCIS FY 2027 H-1B Cap Met: EB-3 PERM Now a Top Alternative for Employers

USCIS has officially confirmed that the FY 2027 H-1B cap has been met, meaning no new cap-subject H-1B petitions can be filed for the fiscal year beginning October 1, 2026. This closure affects employers who were planning to hire foreign national workers through the H-1B lottery system and must now reassess their workforce immigration strategies. For employers unable to secure H-1B approval, employment-based green card sponsorship — particularly through the EB-3 category — becomes a critical alternative. The EB-3 visa covers skilled workers, professionals, and unskilled workers, and is processed through the PERM labor certification route administered by the Department of Labor. Unlike H-1B, EB-3 PERM sponsorship is not subject to an annual lottery, making it a more predictable pathway. Employers with existing H-1B employees who were not selected in the lottery or whose cap-subject extensions are no longer viable may consider initiating PERM applications now to build a long-term immigration strategy. Starting the EB-3 PERM process early is especially important given current processing backlogs at both DOL and USCIS. For EB-3 applicants already in the pipeline, this development may indirectly increase employer interest in sponsoring new EB-3 cases as an H-1B alternative, potentially expanding the pool of eligible sponsoring employers in the near term. Workers in industries where H-1B has traditionally dominated — such as tech and engineering — may see growing EB-3 sponsorship opportunities. Employers are advised to consult with immigration counsel to evaluate cap-exempt H-1B options, O-1 visas, TN status, or initiate PERM-based green card sponsorship as immediate next steps following the H-1B cap closure.