H-1B Cap Reached: Why EB-5 Is Emerging as a Smarter Alternative

On July 18, 2025, U.S. Citizenship and Immigration Services (USCIS) officially announced that the H-1B visa cap for FY2026 has been reached, closing the window on this year’s lottery-based selection process. With only 85,000 total slots available, 65,000 under the general cap and an additional 20,000 for U.S. master’s degree holders, the system once again left hundreds of thousands of qualified applicants behind.

In this fiscal year, USCIS received 343,981 eligible H-1B registrations, a steep decline from 470,342 in FY2025, and less than half the peak seen in FY2024. Yet, even at this lower figure, demand far outstripped supply, a clear signal that the H-1B visa continues to be a bottleneck for skilled foreign professionals and U.S. employers alike.

But amid tightening rules, increased costs, and economic headwinds, many global professionals are beginning to ask a different question: Is the H-1B still worth it? Or is it time to consider a better alternative, like the EB-5 Immigrant Investor Program?

The Shrinking Opportunity for H-1B Applicants

This year’s H-1B cap season stood apart for a few key reasons, explained in more detail below.

A Tighter, More Transparent Process

USCIS implemented a beneficiary-centric selection model for FY2026. In previous years, multiple employers could submit registrations for the same candidate, artificially inflating chances. The new system allows only one lottery entry per individual. While this has reduced abuse, it has also made it harder for applicants to hedge their bets.

Rising Filing Costs

In January 2025, the H-1B registration fee surged from $10 to $215. While seemingly minor, this increase is forcing startups and smaller tech firms to be more selective, often prioritizing only critical or high-margin roles.

Stricter Enforcement and Visa Risks

Policy updates like the revival of the “Catch-and-Revoke” rule, which cancels visas of individuals found in violation of any U.S. law, are adding to the uncertainty. Even minor administrative or legal errors can now result in visa termination.

Economic Pressure From Tech Layoffs

Widespread layoffs across the global tech sector have hit H-1B holders hard. Over 260,000 tech jobs were cut between 2024 and 2025. In April 2025 alone, nearly 23,500 layoffs occurred, affecting major firms like Microsoft, Intel, Meta, Google, and Indian tech companies like Cars24 and Gupshup.

While the H-1B remains a coveted pathway for many, it is increasingly competitive, uncertain, and employer-dependent. For those seeking more control over their U.S. immigration journey, the EB-5 visa is gaining attention as a more secure, long-term route.

What Is the EB-5 Immigrant Investor Program?

The EB-5 program offers U.S. Green Cards to foreign investors who contribute $800,000 (or $1,050,000 if outside targeted employment areas) into qualified U.S. new commercial enterprises that create at least 10 full-time jobs for U.S. workers.

In return, investors and their immediate family (spouse and children under 21) receive permanent residency (Green Cards) with no lottery, no employer sponsorship, and far fewer restrictions compared to H-1B.

Why EB-5 Makes Sense in Today’s Environment

For skilled professionals navigating the challenges of the H-1B process, the EB-5 program offers stability and predictability. It provides a rules-based path to permanent residency, avoiding the uncertainty of annual lotteries and the limitations tied to employer sponsorship. In an environment shaped by economic pressures, policy changes, and job market volatility, EB-5 allows qualified investors to secure their U.S. future on their own terms. Here are a few of the main reasons why:

No Lottery

Unlike the H-1B, the EB-5 visa is not subject to a lottery system. Every qualified investor has a clear and direct path to permanent residency, provided they meet program requirements. This eliminates the uncertainty that comes with waiting for a random draw each year, only to learn months later that you were not selected, sometimes after multiple failed attempts.

Independence From Employers

The EB-5 program gives you freedom and flexibility. You don’t need a job offer, and you’re not tied to a specific employer or location. This is especially attractive for entrepreneurs, business owners, freelancers, and individuals working in volatile sectors like tech.

You also avoid many of the complications H-1B workers face, like visa revocation after a layoff, restrictions on job switching, and a 60-day deadline to find a new employer if terminated.

Permanent Green Card for the Whole Family

EB-5 is one of the few U.S. visa options that provides direct permanent residency to spouses and children under 21. Children can attend public schools or universities in the U.S. at in-state tuition rates, and your family gains long-term stability regardless of your employment status.

Pathway to U.S. Citizenship

After five years of residency, EB-5 investors and their families can apply for U.S. citizenship. In contrast, H-1B holders must first transition to a Green Card through employer sponsorship, a process that can take years or even decades depending on the applicant’s country of origin.

Greater Control Over Your Future

The EB-5 visa provides investors with a proactive and strategic immigration solution. Rather than navigating yearly lottery disappointments or employment-based restrictions, you can take your future into your own hands, whether you’re building a business, sending your children to top schools, or planning a permanent life in the U.S.

Is EB-5 Right for You?

While the EB-5 route requires a financial commitment, it’s increasingly being seen as a worthwhile investment in long-term certainty, especially when compared to the volatile and high-risk H-1B landscape. What’s more, applicants don’t have to transfer the full investment in a single payment. They can draw on a mix of funding sources, such as gifts and loans, and take advantage of additional incentives like partial payment options.

The program is particularly well-suited for:

Entrepreneurs or startup founders who don’t fit neatly into traditional job-based categories.

• Entrepreneurs or startup founders who don’t fit neatly into traditional job-based categories.
• Parents who want to secure a stable future and top-tier education for their children.
• Tech professionals frustrated by layoffs, sponsorship uncertainty, or long Green Card backlogs.
• H-1B holders who are tired of temporary status and want permanent security.

A Shift in Strategy for Global Talent

The closure of the H-1B lottery for FY2026, and the nearly four-to-one ratio of applicants to available spots, highlights just how competitive and uncertain this route has become.

While the U.S. continues to be a top destination for global talent, the immigration landscape is evolving. The EB-5 program offers a stable, employer-independent, and direct path to U.S. residency that bypasses the unpredictability of temporary visas like the H-1B.

For those with the means and vision, EB-5 is not just an immigration option, it’s a long-term strategy for securing opportunity, security, and success in the United States.

EB5AN has helped more than 2,700 families from 70+ countries become lawful permanent residents of the United States. Our team has more than a decade of experience and offers clients first-rate, low-risk EB-5 regional center projects with a 100% USCIS project approval rate.

If you would like to know more about your EB-5 investment options, book a free call with our expert team today.