H-1B visa registrations drop in FY 2027: Here are the beneficiaries

While large IT outsourcing companies and start-ups are particularly affected by this decline, immigration experts assert that these changes are also changing the employment landscape, creating new opportunities for small and medium-sized enterprises.

Also read: 2026 H-2B visa cap exhausted: Check supplemental quota eligibility and application dates

Shilpa Malik, managing attorney at VisaNation Law Group, told the Economic Times that she had seen a drop of about 50% in applications compared with the previous year, while other legal professionals estimated the drop to be about 30%.

Those with a master’s degree in the United States are expected to reap the greatest benefits, while mid-sized companies are prepared to offer higher salaries for professional positions. In addition, smaller businesses that have previously faced challenges due to the high volume of applications from large outsourcing companies are also expected to gain access to additional opportunities.

Malik told The Economic Times: “Previously, these companies were often discouraged by the meager advantages brought by large outsourcing companies. Now the playing field is level and they feel they have a legitimate and fair chance to attract talent.”

She mentioned that master’s degree holders in the United States would likely benefit most from a master’s degree cap and a transition to higher-skilled, more profitable positions.

The United States issues 85,000 H-1B visas each year within annual limits, 65,000 of which are for professional occupations requiring at least a bachelor’s degree, and an additional 20,000 visas are reserved for applicants holding a master’s degree or higher from a U.S. institution.