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    GMS Flash Alert 2025-034

    United States – FY2026 H-1B Cap Lottery Registration Opens March 7, 2025

    GMS Flash Alert 2025-034 | February 7, 2025

    On February 5, 2025, the U.S. Citizenship and Immigration Services (USCIS) announced that the initial registration period for the H-1B cap in fiscal year (FY) 2026 will open at 12:00 p.m. (EST) on March 7, 2025, and end at 12:00 p.m. (EST) on March 24, 2025.1  Petitioners and their representatives will be able to complete and submit registrations for prospective H-1B candidates using USCIS’s online H-1B registration system during the indicated period.

    Similarly to FY2025, the USCIS will use a beneficiary-centric approach and select individual beneficiaries, instead of selecting registrations by employer name.  The goal is to enhance fairness in the H-1B cap selection process and prevent multiple selections of the same beneficiary if multiple employers register the same beneficiary (for related coverage, see GMS Flash Alert 2024-258 and GMS Flash Alert 2023-027).

    WHY THIS MATTERS

    Every year, many U.S. employers hire foreign nationals in specialty occupations through the H-1B visa category.  This visa serves as a significant avenue for organizations to recruit international talent for at least six years, during which a U.S. employer may initiate the process of green-card sponsorship.  On January 17, 2025, the Department of Homeland Security (DHS) published a final rule to inhibit fraud and abuse of the H-1B cap lottery and give petitioners and legal representatives some clarity regarding the H-1B cap process.

    For the first time, F-1 students will benefit from an extended cap-gap period where their work authorization will be automatically extended until April 1 of the following calendar year.  This is an extension beyond October 1 of the prior calendar year, the cap-gap end date in previous years.  The goal is to provide students with greater flexibility and enable employers to employ these students without disruptions in their work authorization.   

    The considerable increase in the H-1B cap registration fee, from $10 to $215, will represent an added cost to employers with plans to bring into the U.S. foreign-national employees under the H-1B visa program and, as such, employers may need to review their budgets and planning.

    What Is the H-1B Cap Lottery?

    The H-1B cap is a process whereby a total of 85,000 new H-1B visas are made available.  Of these, 20,000

    H-1B visas are specifically designated for individuals who possess a U.S. Master’s degree or higher at the time of their application.  While the USCIS has not specified this fiscal year’s filing period, it is expected to run for 90 days and end sometime in late June 2025.

    Like in previous years, the USCIS will notify registrants of individual selections through their USCIS online accounts.  The USCIS aims to notify registrants of selections by March 31, 2025.

    Increase in Registration Fee to $215

    The H-1B cap registration fee has been increased to $215 per beneficiary.  This is a significant increase from the registration fee of $10 in previous years.

    Extending Cap-Gap for F-1 Students until April 1

    The DHS published a final rule furthering the automatic cap-gap extension for F-1 students transitioning to H-1B status.  The automatic extension, previously valid until October 1 of the year for which H-1B status was being requested, is now being extended until April 1 of the following calendar year.  To benefit from cap gap, petitioners and legal representatives must file the H-1B cap petition as a Change of Status (COS).  

    KPMG INSIGHTS

    There has been much press lately about the H-1B visa, which may have created some confusion.  If petitioners and their representatives have questions or concerns about eligibility, conditions, timing, and the registration/application process in respect of the H1-B and/or the change in the cap-gap period for F-1 students, it is recommended they contact their usual immigration counsel or a member of the U.S. immigration team with KPMG Law LLP in Canada (see the Contacts section).

    KPMG Law LLP in Canada is tracking this matter closely.  We will endeavor to keep readers of GMS Flash Alert posted on any important developments as and when they occur.

    FOOTNOTE:

    1  See United States Citizenship and Immigration Services, “FY 2026 H-1B Cap Initial Registration Period Opens on March 7” webpage (February 5, 2025).

    Contacts

    laura-wong
    Laura Wong

    Manager, U.S. Immigration

    KPMG in Canada

    Alexander Tolic
    Alexander Tolic

    Associate

    KPMG in Canada

    More information

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    Disclaimer

    * Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.

    The information contained in this newsletter was submitted by the KPMG International member firm in Canada.

    GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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