H-1B Visa Lottery Strategy & Cap-Exempt Employer Pathways
Updated 1 November 2026 · 3 min read
H-1B in short
The H-1B is the main US work visa that employers use to hire international graduates, including Indian students finishing a US Master's. Three things have changed recently, so older advice (including "it's a pure lottery") is out of date:
- Selection is now weighted by salary level. From fiscal year (FY) 2027, USCIS uses a weighted selection process instead of a purely random draw.
- A $100,000 payment applies to some new petitions, but not to students changing status inside the US, and a court has blocked the guidance that implements it.
- The numbers are the same: 65,000 regular H-1B places a year, plus an extra 20,000 for people with a US Master's degree or higher.
How selection works now
Employers register each candidate in March for the next fiscal year's cap. The registration fee is $215.
Weighted selection (from FY2027). When there are more registrations than places, USCIS weights each registration by the wage level of the job offered (the OEWS wage levels used by the US Department of Labor):
| Wage level of the job | Entries in the selection |
|---|---|
| Level IV (highest) | 4 |
| Level III | 3 |
| Level II | 2 |
| Level I (entry level) | 1 |
Each person counts only once, however many employers register them. In practice, a better-paid offer gives a higher chance of selection; an entry-level salary still has a chance, but a lower one.
The Master's advantage. Congress sets the regular cap at 65,000. An additional 20,000 petitions are available for people who have earned a US master's degree or higher, so a US Master's gives you an extra chance at selection.
The $100,000 payment
A Presidential Proclamation requires an extra $100,000 payment for certain H-1B petitions filed on or after 21 September 2025 for people outside the United States who do not have a valid H-1B visa.
For Indian students, the key point: USCIS says the payment does not apply to a petition asking for a change of status, amendment or extension for someone inside the United States, as long as USCIS approves that change. A student on F-1 (including OPT or STEM OPT) whose employer files a change of status to H-1B is in this group. If USCIS decides you are not eligible to change status (for example, you are out of status or left the US before the decision), the payment applies.
On 8 June 2026 a federal court vacated the agency guidance that implements the payment, and on 24 July 2026 the appeals court refused the government's request to pause that order. USCIS says it will comply for now but plans to collect the payment if the order is lifted. Before your employer files, look up the latest position on the USCIS H-1B page before your employer files.
Cap-exempt employers: no selection needed
Some employers are not subject to the annual cap at all, so they can file H-1B petitions at any time of year without registration or selection. According to USCIS, these include:
- institutions of higher education (universities) and their affiliated or related nonprofit entities, and
- nonprofit research organisations and government research organisations.
If you are not selected while working on OPT or STEM OPT, a job with a cap-exempt employer is one way to move to H-1B. See our guide to OPT and the 24-month STEM OPT extension for how long you can work while you try.
What this means for your plans
- Choose a STEM-eligible Master's if you want up to three years of OPT (12 months plus a 24-month STEM extension), which gives you more than one H-1B season.
- Salary matters more than before. Under weighted selection, the wage level of your job offer changes your chances.
- Rules are changing quickly. Proposals for new fees on H-1B petitions and on OPT have also been published. Confirm the current rules with your university's international office and your employer before making decisions.
Next steps
- OPT and 24-month STEM OPT extension
- Green card routes: EB-2 NIW and others
- STEM-designated MS Computer Science programs
Sources
Checked on 18 October 2026:
- USCIS: H-1B cap season (weighted selection, cap numbers, registration fee)
- USCIS: H-1B specialty occupations (cap-exempt employers, $100,000 payment and court order)
- Federal Register: weighted selection final rule (29 December 2025)
US immigration rules change often. Always confirm with USCIS, your university's international office and your employer.
Common Questions (FAQs)
Is the H-1B still a lottery?
Not purely. From FY2027, USCIS uses weighted selection: when registrations exceed places, jobs at higher wage levels get more entries (level IV four, level I one). Each person counts once.
Does the $100,000 H-1B payment apply to Indian students on OPT in the US?
USCIS says the payment does not apply to a petition for a change of status inside the United States that it approves, which covers F-1 students on OPT or STEM OPT. A court vacated the implementing guidance in June 2026; see USCIS for the latest position.
How many H-1B visas are there each year?
65,000 under the regular cap, plus an additional 20,000 for people with a US master's degree or higher. Universities and certain nonprofit and government research organisations are cap-exempt.