H-1B Visa Rules Shift Advantage to Smaller Firms and US Master's Degree Holders

Many chose not to file this year due to higher visa fees and uncertainty surrounding changes to the lottery system.

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The H-1B visa registration process for fiscal year 2027 has closed, with filings estimated to have dropped by 30-50% compared to last year.

While large IT outsourcing firms and start-ups have been affected, experts say the revised rules are opening up opportunities for other companies.

The fall in applications is linked to employers taking a cautious approach due to higher visa fees and uncertainty surrounding changes to the lottery system.

Shilpa Malik, managing attorney at VisaNation Law Group, said filings have fallen by about 50% compared to last year, while other lawyers estimated the drop at around 30%.

The new rules have created an advantage for master's degree holders in the United States, mid-sized companies offering higher pay for specialized talent, and smaller firms that previously found it difficult to compete against bulk filings by large outsourcing companies.

The United States Citizenship and Immigration Services (USCIS) plans to inform selected applicants by March 31, 2026, through their online accounts.