Explained: Why H-1B is the most restrictive visa in US immigration

For fiscal year 2025, U.S. employers filed a staggering 423,028 eligible H-1B registrations, hoping to secure one of just 85,000 available visas for foreign workers-an approval rate of only 20%

 H-1B visa category is widely considered the most restrictive category within the US immigration system, primarily due to its annual numerical cap that limits the number of visas available, often leading to a lottery system for applicants, and stringent requirements for employers and potential employees.  A new analysis from the National Foundation for American Policy (NFAP) reveals that, despite receiving 423,028 eligible registrations in fiscal year 2025, only 85,000 new H-1B visas were granted—representing just a 20% approval rate.  What does this mean?   This means that for every five high-skilled foreign nationals looking to work in the U.S., only one will be granted an H-1B visa. With a number this low, it’s no surprise that the H-1B visa is now considered the most restrictive visa category in the U.S. immigration system, leaving thousands of qualified candidates without an opportunity to contribute their talents to one of the world’s largest economies.

 

 

 “The low annual limit on new H-1B petitions makes the category the most restrictive visa in the U.S. immigration system,” according to a new National Foundation for American Policy analysis.

 

This low approval rate has led to over 300,000 qualified individuals being denied the opportunity to work in the United States. Analysts have raised concerns that the strict annual limit on H-1B visas is impeding U.S. employers' ability to retain and attract top international talent, particularly in high-demand fields like technology, engineering, and artificial intelligence.

 

What is the H-1B Visa Category?

The H-1B is a temporary (nonimmigrant) visa category that allows employers to petition for highly educated foreign professionals to work in “specialty occupations” that require at least a bachelor’s degree or the equivalent. Jobs in fields such as mathematics, engineering, technology, and medical sciences often qualify. Typically, the initial duration of an H-1B visa classification is three years, which may be extended for a maximum of six years.

 

The history of the H-1B visa program reveals significant changes in the way the U.S. has regulated the number of visas available for high-skilled foreign nationals, particularly since the early 1990s. Here's a breakdown of the key points: 

 

1990 – Establishment of the 65,000 Cap: In 1990, Congress imposed a limit of 65,000 new H-1B visas annually. This meant that only 65,000 individuals could be approved for H-1B status each year, regardless of how many qualified candidates there were. The intention was to regulate the number of foreign professionals entering the U.S. labor market.

 

2004 – Increase to 85,000 and Exemption for Master's Graduates: In 2004, Congress raised the cap on new H-1B visas to 85,000. However, an important change was made: individuals with a U.S. master's degree or higher were exempted from this limit, creating a separate category for them. This exemption allowed up to 20,000 foreign nationals who earned advanced degrees from U.S. universities to be granted H-1B status without counting against the annual limit. This change was made to help attract highly skilled workers with advanced education, particularly in fields like science, technology, engineering, and mathematics (STEM).

 

Post-2004 – Exhaustion of the Cap: Since 2004, the demand for new H-1B visas has exceeded the annual limit, and employers have consistently exhausted the supply of available visas each fiscal year. This means that many qualified applicants, even though they meet all the criteria for the visa, do not receive it because the limit is reached too quickly.

 

2000 – Exemption for Universities and Research Institutions: In 2000, Congress exempted H-1B petitions from the annual cap for certain employers, specifically U.S. universities, nonprofit organizations, and government research institutions. This was done to ensure that academic and research institutions could hire foreign talent without being constrained by the numerical limit, as they were seen as key contributors to innovation and the development of new knowledge and technologies

 

"During the Trump administration, USCIS initially denied a larger percentage of H-1B petitions than in the preceding four years. But with a growing number of these denials being overturned, the denial rates decreased substantially during the latter half of FY 2020. Denials of new H-1B petitions for initial employment rose from six percent in FY 2015 to a high of 24 percent in FY 2018 before dropping to 21 percent in FY 2019, 13 percent in FY 2020, four percent in FY 2021, and only two percent in FY 2022 (the two lowest denial rates ever recorded). The denial rate for petitions for continuing employment was two percent in both FY 2022 and FY 2021, down from seven percent in FY 2020 and 12 percent in both FY 2018 and FY 2019," said the US Immigration Council in a research paper. 

   

The report notes that H-1B visa is vital for foreign nationals, including international students, who seek long-term employment in the U.S. After completing their studies, many foreign graduates rely on the H-1B visa to stay and contribute to the U.S. economy. However, the report highlights a startling comparison: foreign tourists are far more likely to be approved for U.S. visas than skilled workers. For example, a couple seeking to attend Mardi Gras is three times more likely to receive a visa than an electrical engineer with a master's degree seeking to work in the U.S. Similarly, a European teenager applying for a summer job at an amusement park is four times more likely to receive a visa than a graduate student aiming to work in artificial intelligence at a U.S. company. 

Perhaps even more troubling is the fact that this cap only applies to new petitions for H-1B visas. Renewals for existing H-1B visa holders—many of whom have been working in the U.S. for years—are not subject to the same restrictions, but the sheer demand for new H-1B visas has created an environment in which employers are finding it harder and harder to bring in new talent.

 

This system then creates a vicious cycle: the U.S. economy needs skilled workers to remain competitive, but a rigid cap on H-1B visas prevents talented individuals from joining the workforce. And those who do manage to secure a visa often find themselves in a precarious situation, with limited options for permanent residency or long-term stability.