The H-1B Visa Lottery: How It Works And What's Changing

For many U.S. employers, the H-1B visa lottery has become a high-stakes ritual - an annual roll of the dice that determines whether critical talent can be hired or must remain abroad.

While designed to make a limited resource more equitable, the process has evolved into one of the most contentious elements of America's immigration system for skilled workers.

With the federal government restricting immigration, unlike before, businesses are already feeling the changes.

Just look at the sheer numbers of the H-1B visas awarded in the lottery over the last two years.

Under the immigration-friendly Biden administration, nearly 400,000 H-1B visas were approved in 2024. This year, in the unfriendly Trump administration, only 135,000 were approved.

For businesses, understanding these changes now can help find alternatives to H-1B visas for the next few years.

The attorneys at The Orlando Law Group specialize in helping businesses with employment and immigration issues in Orlando, Sanford, Winter Garden and Kissimmee and are here to help business owners continue to be successful.

The Mechanics of the Lottery

Each March, U.S. Citizenship and Immigration Services (USCIS) opens registration for employers seeking to sponsor foreign professionals in "specialty occupations."

When the number of applications exceeds the annual cap—65,000 standard visas plus 20,000 for U.S. master's degree holders—a computer-generated lottery decides who moves forward.

Those selected can then submit full petitions, subject to additional vetting and, if approved, begin work as early as October. Those not selected must wait another year or pursue alternative options such as L-1 transfers, student OPT extensions, or global relocation.

As shown in the numbers for just the past two years, demand has dwarfed supply.

A System Under Strain

What began as a fair mechanism for managing high demand has faced growing scrutiny. Critics argue that some large outsourcing firms have exploited loopholes by submitting multiple entries for the same worker through affiliated entities, increasing their chances of selection.

In response, USCIS introduced tighter rules for the 2025 cycle, requiring registrants to identify each employee to be considered for a visa, rather than per employer, reducing opportunities for duplication.

The change is meant to restore fairness—but it also raises compliance burdens for legitimate employers navigating an already complex system.

Think about that. Now, instead of an employer saying they needed a certain number of employees in one entry, each person who receives the H-1B visa now needs to register.

Just like other changes of the lottery, this will make it more difficult for businesses.

The Business Cost of Uncertainty

For many businesses, these changes are simply too much unpredictability in workforce planning.

Companies can recruit global candidates, complete interviews, and prepare sponsorship documentation—only to lose out due to a random draw.

That uncertainty affects not just hiring timelines but long-term strategy, especially for organizations dependent on technical expertise in IT, biotech, or engineering.

While the hope in these changes would mean more jobs for American workers, some firms have responded by diversifying their workforce strategies: opening offices in Canada or Mexico, expanding remote roles, or leveraging the O-1 visa for extraordinary talent.

But these are workarounds, not solutions.

More changes could be coming

Policy discussions continue around moving from a lottery to a merit-based or wage-prioritized system. Such a shift could favor higher-paying or high-impact roles, aligning visa allocation with national economic needs.

Yet until Congress acts, employers must continue to plan around chance or look for other ways to meet their employee needs.

The attorneys at The Orlando Law Group help with all types of legal issues for businesses in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.