USCIS Reaches FY2027 H-1B Cap: USCIS Processing Time Update July 2026 for Skilled Workers

USCIS has announced it has reached the congressionally mandated cap for H-1B visas for Fiscal Year 2027. This means USCIS will reject any cap-subject H-1B petitions received after the cap was met, affecting thousands of employers and skilled foreign workers who had planned to file this cycle. For employers, reaching the cap means they must now plan alternative visa pathways for workers who did not secure an H-1B slot. Options include L-1 intracompany transferee visas, O-1 extraordinary ability visas, or TN visas for Canadian and Mexican nationals under USMCA. Employers sponsoring workers for employment-based green cards, including EB-3, should accelerate those petitions where possible. For skilled foreign workers currently on H-1B status, this development underscores the importance of pursuing permanent residency pathways such as EB-2 or EB-3 to avoid dependency on the annual H-1B lottery. Workers already in the H-1B pipeline who were not selected should consult their immigration attorneys immediately about alternatives. The H-1B cap, set at 65,000 regular-cap visas plus 20,000 additional visas for U.S. advanced degree holders, is reached annually through a lottery process. The FY2027 cap being reached continues the trend of heavy oversubscription, reinforcing the structural need for employment-based green card reform to accommodate the skilled worker pipeline. EB-3 applicants and prospective applicants should monitor the August 2026 Visa Bulletin for any movement in priority dates, as demand pressure from H-1B cap exhaustion typically correlates with increased EB-3 filings in subsequent months.