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The H-1B visa is one of the most popular U.S. work visas for skilled foreign professionals, especially in sectors such as technology, engineering, research, and healthcare. However, the program operates under a strict annual limit known as the H-1B cap, which determines how many new visas can be issued each fiscal year.
Understanding how the H-1B cap works—and who is exempt from it—is essential for both employers and foreign nationals planning to work in the United States.
What Is the H-1B Cap?
The H-1B cap is the annual numerical limit set by the U.S. government on new H-1B petitions. Each year, the U.S. Citizenship and Immigration Services (USCIS) allows a specific number of new H-1B visas to be issued.
The breakdown is as follows:
• 65,000 visas are available under the regular cap.
• 20,000 additional visas are reserved for foreign nationals who hold a U.S. master’s degree or higher (the “advanced degree exemption”).
In total, the annual H-1B cap stands at 85,000 visas per fiscal year. Once the limit is reached, no new cap-subject H-1B petitions can be filed until the next fiscal year unless the applicant qualifies for an exemption.
How the H-1B Cap Lottery Works
Because the number of H-1B petitions typically exceeds the available quota, USCIS conducts a lottery system to randomly select eligible registrations.
The process includes:
1 Online registration: Employers register their candidates during a designated window, usually in March.
2 Lottery selection: USCIS randomly selects registrations to meet the cap limit.
3 Petition submission: Employers of selected candidates are invited to file full H-1B petitions.
Those not selected in the lottery must wait until the next fiscal year unless they are eligible for a cap-exempt filing.
Who Is Exempt from the H-1B Cap?
Certain organizations, job roles, and individuals are exempt from the H-1B cap, meaning they can apply for or transfer an H-1B visa at any time, without waiting for the lottery.
1. Cap-Exempt Employers
The following employers are not subject to the H-1B numerical limit:
• Institutions of higher education (universities and colleges)
• Nonprofit organizations affiliated with higher education institutions
• Nonprofit or governmental research organizations
Employees of such organizations can file H-1B petitions year-round, without regard to the cap.
2. Individuals Previously Counted Under the Cap
Foreign nationals who have already been counted under the H-1B cap within the past six years are typically exempt when:
• Extending their stay with the same employer
• Changing employers (H-1B transfer)
• Working for a second H-1B employer concurrently
Since they were already subject to the cap once, their subsequent petitions are not counted again.
3. H-1B Extensions and Amendments
An H-1B worker applying to extend their authorized stay, update job details, or amend an existing petition is not subject to the annual H-1B cap. These petitions are considered continuations of existing H-1B status.
4. J-1 Visa Waiver Physicians (Conrad 30 Program)
Foreign physicians who have received a J-1 visa waiver under the Conrad 30 Program—usually by agreeing to work in a medically underserved area—are exempt from the H-1B cap when transitioning to an H-1B visa.
5. Concurrent Employment with a Cap-Exempt Employer
An H-1B worker who takes up a second position with a cap-exempt employer can file a concurrent H-1B petition without being subject to the cap, as long as the cap-exempt position remains valid.
Why the Cap-Exempt Category Matters
Being exempt from the H-1B cap allows employers to:
• Hire skilled workers throughout the year without relying on the lottery
• Retain existing H-1B employees without interruption
• Plan workforce needs more efficiently
For professionals, working for a cap-exempt employer—such as a university, hospital, or research institution—offers a practical alternative to the uncertainty of the lottery system.
Key Tips for H-1B Applicants
• Confirm whether your employer qualifies as cap-exempt before filing.
• Ensure all documents are accurate and complete to avoid processing delays.
• Students on F-1 visas should explore OPT and cap-gap extensions to stay eligible.
• Always seek legal advice for complex cases involving cap exemption or transfer.
Sources
• U.S. Citizenship and Immigration Services (USCIS) – H-1B Specialty Occupations
November 22, 2025
