US H-1B visa applications drop to 3-year low: Why it happened and what it means for Indians

Representational Image

The number of H-1B visa applications filed for the fiscal year 2026 has plummeted by 25%, marking a significant shift in interest for one of the most sought-after U.S. work permits among skilled foreign professionals. According to newly released data from the United States Citizenship and Immigration Services (USCIS), total applications dropped to 358,737 from 479,953 the previous year.

The decline isn’t limited to applications alone; only 120,141 were shortlisted for the lottery selection process this year, down 27% from 135,137 in FY25. Of these, just 85,000 visas will ultimately be granted, consistent with the annual cap. This year’s shortlisted registrations are the lowest seen since FY22.

This comes amid a sharp increase in visa fee and layoffs by several companies amid a downturn in the US economy. Experts believe that the new and tougher visa and immigration policies laid down by the Trump administration. This involves more documentation, scrutiny of social media accounts of applicants and tighter rules for working individuals to reside in the country.

Impact on Indians

The sharp drop in H-1B visa applications and selections is particularly significant for Indian professionals, who have historically accounted for the lion’s share of these visas. In previous years, over 70% of H-1B recipients were from India, largely employed in the technology, consulting, and healthcare sectors.

The H-1B cap remains 65,000 visas per year, with an additional 20,000 for applicants with US master's degrees. The USCIS has introduced a beneficiary-centric selection process to reduce fraud and ensure fair selection. The new registration fee is $215, against the earlier fee of just $10.

In FY2023, Indians accounted for 68,825 (58%) of initial H-1B employment visas and 2.10 lakh (79%) of extensions. In contrast, applicants from China received 16,094 initial visas and 29,250 extensions.

For thousands of skilled Indian workers hoping to pursue careers in America, the narrowing odds have added layers of uncertainty. Many face prolonged delays in securing legal work status, while others are compelled to explore alternate destinations like Canada, Germany, or the UAE. The downturn has also disrupted plans for Indian students in US universities who depend on the H-1B visa as a bridge to employment after graduation.

The US on Monday said that it is imposing visa restrictions on owners, executives, and senior officials of travel agencies in India for knowingly facilitating “illegal immigration” to the United States.

"Mission India's Consular Affairs and Diplomatic Security Service work every day across our Embassy and Consulates to actively identify and target those engaged in facilitating illegal immigration and human smuggling and trafficking operations,” the State Department said in a statement.

The Department of State is “taking steps today to impose visa restrictions on owners, executives, and senior officials of travel agencies based and operating in India for knowingly facilitating illegal immigration to the United States,” it said.