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H-1B cap, exemptions, and cap gap

The annual H-1B numerical limit (the “cap”), the U.S. master’s exemption, who can file year-round without the lottery, and how F-1/OPT workers bridge to an October 1 start — written for employers and HR.

Regular + master’s cap explainedCap-exempt pathsLawyer on every filing

What is the H-1B cap?

The Immigration Act of 1990 created an annual limit on new H-1B admissions. When demand exceeds supply — the recent norm — USCIS uses electronic registration and a selection process (lottery), now with wage-weighted entries for FY 2027. A cap number must be available for a new cap-subject petition to be approved.

Regular H-1B cap

Congress sets an annual limit of 65,000 new cap-subject H-1B visas. A portion is reserved for Chile and Singapore professionals under free-trade agreements, so the general pool is typically about 58,200 plus any unused prior-year numbers when available.

U.S. advanced degree exemption (master’s cap)

An additional 20,000 slots are available for beneficiaries with a master’s or higher from a U.S. institution of higher education. When those 20,000 are filled, remaining advanced-degree registrations compete in the regular cap.

Who is subject

Generally, first-time H-1B petitions for for-profit employers are cap-subject and need lottery selection (or an open cap, which has not been the recent pattern). Extensions, amendments, and many change-of-employer transfers for workers already counted against the cap are not.

Who is exempt from the H-1B cap?

These categories can generally file without regard to the annual numerical limit when requirements are met:

  • Institutions of higher education
  • Nonprofit entities related to or affiliated with institutions of higher education
  • Nonprofit research organizations or governmental research organizations
  • · Cap-exempt petitions can generally be filed any time of year — no March lottery registration.
  • · Qualifying university and research sponsors in markets like Chicago (Northwestern, UChicago, UIC) often use this path.
  • · For-profit employers may sometimes file cap-exempt when the beneficiary will work primarily at a qualifying cap-exempt site — facts matter; confirm with counsel.
  • · Cap-exempt status is about the petitioner/placement — not only the worker’s degree.

Chicago university & research filing →

F-1 to H-1B and the OPT / cap gap

What cap gap is

Cap gap refers to the period between the end of F-1 status / OPT and the October 1 start of a timely filed, selected, cap-subject H-1B with change of status. Without a bridge, the student may fall out of status before H-1B begins.

F-1 to H-1B change of status

When a student in the U.S. is selected and the employer files I-129 requesting change of status, approval can change F-1 to H-1B effective October 1 — but the gap before October 1 still needs careful status planning.

OPT and STEM OPT timing

Many cases rely on OPT (or STEM OPT with an E-Verify employer) lasting long enough to reach the H-1B effective date. Cap-gap extension rules can automatically extend employment authorization in qualifying situations when a timely H-1B petition is filed — confirm current USCIS guidance for your facts.

Travel during cap gap

Travel outside the U.S. during OPT or cap gap can disrupt change-of-status strategy. Whether travel is safe depends on whether OPT is still valid, whether the H-1B petition and change of status were timely filed, and consular processing plans. Get case-specific advice before booking flights.

How employers should handle the cap

  1. 1

    Confirm cap status

    Decide whether the petition is cap-subject (needs lottery selection) or cap-exempt (university / qualifying research nonprofit). Transfers of workers already counted against the cap generally skip the lottery.

  2. 2

    Register in the lottery (if cap-subject)

    For first-time cap-subject beneficiaries, the employer registers during the March window ($999 on h1bfiling.com). Selection is required before filing I-129.

  3. 3

    File LCA + I-129 in the selection window

    If selected, certify the LCA and file Form I-129 before the USCIS deadline (commonly through June 30 for that fiscal year). Flat $2,999 filing includes lawyer review and RFE attorney response.

  4. 4

    Manage October 1 start and status bridges

    New cap-subject employment often begins October 1. F-1/OPT workers may need a lawful bridge (including cap-gap rules when eligible) until H-1B status starts.

Lottery $999 · filing $2,999 (RFE attorney work included) · government fees separate.

H-1B cap FAQs

What is the H-1B cap?
The H-1B cap is the annual numerical limit on new cap-subject H-1B petitions. It includes a regular pool of 65,000 (with FTA carve-outs for Chile and Singapore) plus 20,000 for certain U.S. advanced degree holders. Demand usually exceeds supply, so USCIS runs a registration lottery.
What is the difference between the regular cap and the master’s cap?
The regular cap covers most bachelor’s-level (and other) first-time petitions within the 65,000. The advanced degree exemption adds 20,000 slots for workers with a U.S. master’s or higher. After those 20,000 fill, remaining advanced-degree cases compete in the regular pool.
Who is exempt from the H-1B cap?
Qualifying institutions of higher education, certain related/affiliated nonprofits, and nonprofit or governmental research organizations can generally file without lottery selection. Cap-exempt petitions may be filed year-round when requirements are met.
What is H-1B cap gap?
Cap gap is the status bridge between the end of F-1/OPT and the October 1 start of a selected, timely filed cap-subject H-1B with change of status. Cap-gap rules can extend work authorization in qualifying cases — confirm eligibility before relying on them.
Do H-1B transfers need the lottery?
Usually no. Change-of-employer transfers for workers already in H-1B status (already counted against the cap) typically skip the lottery. The new employer still files a new LCA and Form I-129.
How does h1bfiling.com help with cap-subject cases?
Lottery registration is $999. After selection, full LCA + I-129 prep is $2,999 flat with lawyer review and RFE attorney response included. Cap-exempt university filings and transfers are also supported.