H-1B visa applications for FY26 have dropped by 25% to 358,737 compared to the previous year, with only 120,141 candidates shortlisted—down 27%. Out of these, 85,000 visas will be issued. This marks the lowest selection figure since FY22. The decline coincides with higher visa fees and a sluggish US economy, leading to job cuts. The USCIS conducted FY26 registrations between March 7 and 24. Indian professionals and IT companies, major users of the H-1B program, are among those affected.
Tightened Immigration Policies and Economic Uncertainty Drive Drop in H-1B Demand
Experts attribute this decline to former US President Donald Trump’s lasting influence on immigration policy, including tighter regulations such as social media vetting and more extensive documentation. The application fee hike—from $10 to $215—has also deterred companies from submitting bulk applications. Immigration lawyer Poorvi Chothani noted that firms are now adopting a conservative approach, only applying for essential positions. Job losses at major tech firms like Microsoft and Meta have further reduced demand for foreign workers.
International students are also reconsidering their stay in the US, with many leaving after graduation due to uncertainties around Optional Practical Training (OPT) and future work visa opportunities. Proposed legislation could reduce the current three-year OPT period to just one year, prompting early departures. Minor legal infractions, such as jaywalking, are reportedly being documented and used against visa holders, increasing anxiety among immigrants.
Rising Scrutiny and Delays Complicate H-1B Visa Process Amid Falling Applications
The application process has become more complex, with delays in visa stamping and more frequent requests for additional documentation. Social media checks have intensified, and visa approvals now often face long waits. USCIS reports ongoing efforts to prevent fraud, including investigation, denial, and revocation of suspicious petitions. FY25 saw 479,953 applications with 135,137 shortlisted, a sharp drop from FY24’s 780,884 applications and 188,400 shortlisted. The trend signals increasing scrutiny and deterrents in the H-1B visa process.
Summary: H-1B visa applications for FY26 dropped 25% amid higher fees, economic slowdown, and stricter U.S. immigration policies. Social media checks, documentation demands, and fraud scrutiny have intensified. Companies and students are taking a cautious approach, with job cuts and OPT uncertainties also contributing to the reduced demand for skilled worker visas.
