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H-1B Lottery Explained: What You Need to Know

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Key Takeaways

  • The H-1B lottery is a simple four-step process initiated by the employer.
  • The steps include: employer preparation and eligibility checks, electronic registration, lottery selection, and petition filing.
  • Lottery chances are directly impacted by oversubscription and the annual cap set by Congress.

The H-1B visa remains one of the best pathways for skilled professionals worldwide, but the rapid pace of immigration policy changes has left many wondering about the program’s current status. If you’re planning on applying soon, you’ll need to be up to speed about everything H-1B.

Find out everything you need to know about your H-1B lottery chances with this Luo & Associates guide.

H-1B Lottery Explained: The Basics

The H-1B visa has a dynamic statutory cap that Congress can modify. Currently, that cap sits at 65,000 for the general category and an additional 20,000 for applicants with a U.S. master’s degree or higher.

When the number of annual registrations exceeds that cap, which it does by a massive margin every year, USCIS conducts a random lottery to determine which employers can file a complete petition. 

Note that certain employers, like universities, research, and government institutions, are exempt from participating in the lottery and the cap.

The Lottery Process

We’ll take a minute to explain the H-1B lottery since the process can seem complex if you’re just starting to learn about it. The H-1B application process typically starts early in the year for the upcoming fiscal year.

Step 1: Employer Preparation and Eligibility

Before entering the lottery process, employers need to identify eligible foreign workers for specialty roles and make sure that the job meets the H-1B criteria. This includes:

  • Requiring specialized knowledge
  • Paying prevailing wages

Step 2: Electronic Registration

Before we dive into H-1B lottery chances, we’ll need to talk about the electronic registration that was introduced in 2020. This process usually opens in early March for a three-week window. 

For the purposes of this H-1B lottery explanation, all you need to know is that this step involves employers submitting basic information about themselves and the beneficiary, including a valid passport.

Step 3: Lottery Selection 

If the number of registrations exceeds the annual cap (which typically happens within just a few days), USCIS conducts a lottery. The advanced degree pool goes first in the lottery, with the unselected advanced degree holders entering the general pool afterwards.

Selected, not selected, or waitlisted applicants are typically notified about their status by March 31. Selection percentages have been low as of late due to sheer oversubscription, hovering between 29%-35%

Step 4: Filing the Petition

This is the simplest part of our H-1B lottery explanation! If selected, applicants can file the full petition via. Form I-129 with USCIS. This includes supporting documents like a certified LCA, job details, and educational credentials.

Filing fees can vary, and there are additional costs involved for premium processing if an applicant requires expedited approval. If USCIS approves the H-1B petition, candidates who are already inside the United States in valid status will have their H-1B status automatically begin on October 1 of the same fiscal year. 

Candidates who are outside the United States must complete consular processing and obtain the H-1B visa stamp at their local U.S. consulate before entering the U.S. to start their H-1B employment. Please note that the Presidential Proclamation on Restriction on Entry of Certain Nonimmigrant Workers (Sept. 19, 2025) (effective Sept 21, 2025) could affect consular processing for applicants abroad.

Close-up of the American embassy in London

Recent Changes 

Most of the major challenges to your H–1B lottery chances come from changes in immigration policy implemented in 2025. Let’s go over these changes briefly.

The $100,000 Fee

Under the new rule, any H-1B petition filed on or after September 21, 2025, that seeks consular processing (i.e., for a beneficiary outside the U.S.) now requires an additional $100,000 fee. Without that payment, USCIS will not approve consular-processing petitions, and the beneficiary will not be eligible for visa issuance or entry under H-1B.

Market Dominance

Our H-1B lottery explanation touches on the random nature of the selection process, and yet a majority of the approvals go to tech companies every year. Companies like Amazon, Google, and Microsoft dominate approvals, raising questions about equity for workers in non-tech fields.

That said, major tech companies are also the most well-equipped to handle the headwinds created by immigration policy changes. They can sustainably eat the $100k cost or structure employee compensation in a way that doesn’t bite as much. Smaller companies that might not have those same resources at their disposal will be affected much more strongly.

Build The Perfect H-1B Petition 

Whether you’re looking for a basic H-1B lottery explanation or worrying about your H-1B lottery chances, Luo & Associates has you covered for all your petition needs. With over 10 years of experience and a 99% H-1B approval rate, we’re the perfect choice to make your next transition as smooth as possible. Get started today with a free consultation!

Frequently Asked Questions

Why is the H-1B lottery necessary?

The lottery is necessary to fairly distribute the available H-1B visas once registrations exceed the annual cap. Since they’re based on random number generation, they should, at least on paper, be equitable for workers from all sectors.

How do I know if I’ve been selected from the H-1B lottery?

Your employer will receive the selection notification via their account on the USCIS portal. Please refer to our H-1B lottery explanation regarding notification timelines.

What are the recent changes to the H-1B program?

Recent changes include a one-time $100,000 processing fee for initial applicants and entry restrictions on certain nonimmigrant workers.

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