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H-1B Lottery System Explained

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Team YMGrad 25 Jan 2025    552 views
Updated: 4 Mar 2025
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The H-1B, as we know it, is a nonimmigrant visa category that lets your employer petition for you to work in the United States. Since its administration in 1990, Congress has limited the number of H-1Bs made available each year. Currently, the annual statutory cap stands at 65,000 visas, with 20,000 additional visas for foreign professionals who graduate with a master's degree or doctorate from a U.S. institution of higher learning.

For Fiscal Year (FY) 2025, the USCIS has released an updated modernization regulation. Let's be honest: the H-1B is not the easiest ticket to grab. Between the growing demand, complex rules, and changes in the selection process, it can feel overwhelming. Don't worry; YMGrad's got you covered! In this blog, we'll break down H-1B statistics, success rates, and the new lottery system for FY2025 in a way that's easy to understand!  


   Table of Contents


What Exactly Is The H-1B Visa?

Let's keep it simple. The H-1B is simply a work permit that is granted to highly skilled professionals. It lets U.S. employers bring in talented individuals from across the globe to fill specialized roles in industries such as tech, engineering, healthcare, and beyond. 

Here's the annual cap:

  • Regular Cap: 65,000 visas

  • Master's Cap: An extra 20,000 visas for those with a U.S. master's degree or higher.  


H-1B Success Rates: A Quick Look Back 

Here are the recent stats to see how competitive the H-1B landscape is: 



Fiscal Year 2023

  • 1

    Total Registrations - Around 474,421.

  • 2

    Selections - Over 127,600 (to account for denials and withdrawals)

  • 3

    Approval Rate - About 17.56% of regular cap petitions. 

Fiscal Year 2024

  • 1

    Total Registrations - Around 758,994.

  • 2

    Selections - Approximately 188,400. 

  • 3

    Approval Rate - Dropped down to 10.89%

Fiscal Year 2025

  • 1

    Total Registrations - Around 474,342

  • 2

    Selections - Approximately 135,137. 

  • 3

    Approval Rate - About 17.71%


The drop in H-1B applications for FY 2024 and FY 2025 suggests that the current anti-fraud measures have worked, reducing abuse of the system and ensuring fairer selection.


The New H-1B Lottery Process for FY 2025

As we start the fiscal year 2025, USCIS has changed things with an updated lottery system. If you're planning to apply, there are a few pointers you need to keep in mind:  


1

Beneficiary-Centric Selection Process

USCIS now counts each applicant only once—even if more than one company registers them—to stop employers from teaming up to boost an applicant’s chances.

2

Digital Makeover

Keep an eye out for the USCIS's revamped online platform, which makes the process so much smoother and transparent for everyone. 

3

Self-Petition

The H-1B Modernization Rule that went into effect on January 17, 2025, now allows start-up entrepreneurs to self-petition for an H-1B visa without depending on an employer to sponsor them. 


Why is the Lottery System Changing?

The USCIS decided to make changes to the H-1B process for multiple reasons. Here's a preview of the major factors that have impacted the change:


1

Addressing Exploitation 

Recently, USCIS has reported that employers have attempted to game the system by submitting multiple registrations for the same candidate. This led to certain individuals having an unfair advantage over others. 

2

Promoting Fairness 

The new system makes sure that each candidate receives an equal shot. This essential means that what is being focused on is individual merit rather than the number of registrations. 

3

Encouraging Genuine Applications

By cracking down on duplicate entries, the updated process prioritizes serious employers and qualified applicants, reducing frivolous filings. 

4

Aligning with Workforce Needs

Another motive behind the H-1B modernization rule is to attract top global talent, especially in STEM fields. These individuals are welcomed as they are essential assets that would add to the innovation and economic growth in the U.S.


How is the H-1B Modernization Rule Different From The Old System?

Here's how the new lottery system stacks up against the old system:  

AspectsOld Lottery SystemNew Lottery System
Registration RulesEmployers could submit multiple entries for one candidate. Strict one-registration-per-candidate rule irrespective of how many employers register them. 
Transparency 
Limited clarity on the selection process. Improved digital platform for a clearer and smoother process. 
Self-Petition Employer sponsorship is required.Allows start-up entrepreneurs to self-petition for an H-1B visa without depending on an employer to sponsor them. 





These updates are designed to level the playing field, ensuring that only genuine, qualified applicants make it through the lottery. 


What Can You Do? 

The new process is designed to be fairer for all, but this also means higher competition. If you are serious about securing an H-1B visa, we have gathered some tips to help boost your chances:


1

Stand Out with Advanced Degrees

A U.S. Master's or PhD., especially in a STEM field, would help you stand out. 

2

Choose Trusted Employers

Work with reputable sponsors who know the ins and outs of the H-1B process. 

3

Get Your Docs in Order

Make sure your application is strong, with no room for error, by getting all your documents prepared in advance. Missing documents could potentially lead to a rejection of your application or delay. 


Conclusion

With the new lottery rule introduced, it is a boon for genuine applicants like you. It is a game-changer, especially if you are one who has felt overshadowed by the numerous entries in the past. At YMGrad, we are here not only to help you understand what the visa could do for you but also to help build your profile so you become eligible for the H-1B visa. Our services include multiple points, whether you need to understand the new rules or prep your application, we're here to help you every step of the way. At YMGrad, we're all about turning dreams into reality. Reach out to us today and book a counselling session with any of our counselors to help navigate the H-1B journey and make your U.S. career aspirations come true. 


 For more info on the H-1B & other visa-related queries, Sign up now at YMGrad.

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Frequently Asked Questions!

What is the H-1B visa, and who is it for?toggle

The H-1B visa is a non-immigrant work visa that allows U.S. employers to hire foreign professionals in specialty occupations such as technology, engineering, healthcare, and finance.

How does the H-1B lottery work?toggle

The lottery randomly selects eligible petitions from the pool of applicants. There are two caps: the regular cap (65,000 visas) and the master’s cap (20,000 visas for candidates with advanced U.S. degrees).

Why is the lottery system changing for FY 2025?toggle

The changes aim to address issues such as multiple registrations for the same candidate, improve fairness, and ensure that the process prioritizes qualified applicants and genuine employers.

What is the H-1B lottery?toggle

When applications exceed the cap, a lottery system is used to randomly select which petitions will be processed.

Do candidates with U.S. master’s or higher degrees have an advantage?toggle

Yes, candidates with advanced U.S. degrees are eligible for the additional master’s cap of 20,000 seats and may also receive extra priority under the new system.

What are the chances of being selected in the H-1B lottery?toggle

Selection odds depend on the number of registrations submitted each year. For FY 2024, over 758,994 registrations were submitted, making the process highly competitive.

What does “Beneficiary-Centric Selection” mean in simple terms?toggle

It means that no matter how many companies register the same candidate, they’re only counted once. This stops employers from giving a candidate an unfair boost by submitting multiple entries.

Can the new H-1B lottery rules affect my application timeline?toggle

The timeline for the registration and lottery process remains similar, but the stricter rules may streamline approvals by reducing fraudulent or duplicate entries.

Are there any extra benefits for STEM professionals?toggle

Yes, the U.S. prioritizes STEM professionals, particularly those with advanced degrees, as they are crucial for innovation and economic growth.

What happens if I am not selected in the H-1B lottery?toggle

If you are not selected, you can explore other visa options, such as the O-1 visa for extraordinary ability or the L-1 visa for intra-company transfers. You can also try again in the next fiscal year.