U.S. Citizenship and Immigration Services (USCIS) announced July 18, 2025, that it has received enough H‑1B petitions to reach both the regular cap of 65,000 and the advanced U.S. degree exemption of 20,000 for fiscal year 2026. This means no additional cap‑subject H‑1B petitions can be filed for positions starting before Oct. 1, 2026. Employers that did not have a registration selected this season will not be able to sponsor a foreign national for a cap‑subject H‑1B until the next registration window opens in early 2026 for employment beginning Oct. 1, 2026.

Certain H‑1B filings remain unaffected by the cap. Employers may continue to file cap‑exempt petitions for qualifying nonprofit organizations, research institutions, and affiliated entities, as well as H‑1B amendments, extensions of stay, and changes of employer for individuals already in H‑1B status. These petitions are not subject to the annual numerical limits and can be filed at any time.

For U.S. employers, reaching the cap closes one of the most frequently used pathways to hire foreign talent in specialty occupations for the coming fiscal year. Employers with employees who were not selected should begin evaluating alternatives. Depending on the individual’s background and the position, options may include the O‑1 visa for individuals with extraordinary ability, the L‑1 visa for intracompany transferees, the TN visa for Canadian and Mexican professionals, the E‑2 or E‑3 visas for eligible nationals, or pursuing cap‑exempt H‑1B employment through certain nonprofit or research institutions. Some employers may also consider using F‑1 OPT and STEM OPT extensions to bridge employment until the next H‑1B cycle.

It is important to note that the H‑1B cap season operates on an annual basis. USCIS typically opens the electronic registration period in March, conducts its selection process shortly thereafter, and then allows employers with selected registrations to submit petitions for an October start date. The next opportunity to file a new cap‑subject H‑1B petition will be after the registration window opens in early 2026.

Given increased worksite visits and enforcement actions by both Immigration and Customs Enforcement (ICE) and the Fraud Detection and National Security (FDNS) Directorate,  employers should maintain strong compliance practices and ensure that their immigration files and public access files are up to date and in order.

Employers may wish to consult with experienced immigration counsel, who can help assess available options, prepare strong petitions for selected beneficiaries, develop a strategy for next year’s H‑1B registration season, and advise on compliance programs to mitigate enforcement risks.

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Photo of Ian Macdonald Ian Macdonald

Ian R. Macdonald Co-Chairs the firm’s Labor & Employment Practice’s International Employment, Immigration & Workforce Strategies group. He focuses his practice on developing, assessing and managing global mobility programs for multinational companies on a range of challenges affecting the movement of people capital

Ian R. Macdonald Co-Chairs the firm’s Labor & Employment Practice’s International Employment, Immigration & Workforce Strategies group. He focuses his practice on developing, assessing and managing global mobility programs for multinational companies on a range of challenges affecting the movement of people capital domestically and internationally, including secondment agreements, benefits transferability, local host country employment concerns and immigration.

Ian and his team work closely with companies to manage and modify, where needed, corporate immigration programs to maximize efficiency, service and regulatory compliance levels. He is experienced with the full range of business immigration sponsorship categories (visas and permanent residence), anti-discrimination rules to reduce or eliminate risk of employment litigation, employer sanction cases, and I-9 and E-Verify compliance. Ian assists clients with establishing risk-based performance standards (RBPS) and Department of Homeland Security protocol, providing risk assessment assistance to corporations subject to Chemical Facility Anti-Terrorism Standards (CFATS) and assisting clients with ITAR/Export Control compliance within the immigration context.

Ian has developed strategic relationships abroad that he utilizes when working with clients to ensure compliance with foreign registration requirements. He is experienced with analyzing complex global mobility opportunities on country-specific matters to facilitate the transfer of personnel. Ian is also experienced in counseling employers on immigration strategy as well as immigration consequences of mergers and acquisitions, reduction in workforces, and furloughs.

Prior to joining the firm, Ian worked for the United Nations, various non-governmental think tanks and corporate law firms in London, Washington, D.C., New York and Atlanta.