Stricter H-1B, Green Card rules coming in August; Indians could face more hurdles
The Trump administration is preparing rules that could further tighten H-1B, student visa and Green Card processes. If cleared, the changes could raise costs, increase scrutiny and deepen uncertainty from August. The H-1B route is used by Indian professionals.
The Trump administration is preparing a fresh set of immigration rules that could make it more difficult for foreign professionals, students and employers to navigate the US immigration system. The proposed changes cover some of the most popular routes used by Indians to study and work in the United States. Therefore, Indians, who form one of the largest immigrant groups in the US, could especially face more hurdles under proposed changes to the H-1B programme, L-1 visas and student visas.
The proposals are part of the latest Unified Regulatory Agendas released by the US Departments of Homeland Security (DHS), Labor (DOL) and State (DOS). While none of the measures has taken effect yet, they offer the clearest indication of the administration's plans. If implemented, the changes could mean stricter eligibility rules, more paperwork, closer scrutiny of employers and higher costs for companies that hire foreign workers.
India is likely to be among the countries most affected because Indians account for a large share of H-1B visa holders, employment-based Green Card applicants and international students in the US.
H-1B RULES MIGHT BECOME STRICTER FROM AUGUST
One of the biggest proposed changes concerns the H-1B visa programme, which allows US companies to hire foreign professionals in specialised fields. Every year, 85,000 new H-1B visas are available under the annual cap.
The DHS is expected to publish a proposed rule in August that would tighten several parts of the programme. The proposal could narrow exemptions from the H-1B cap, which are currently available to universities and certain research organisations. It would also introduce stricter requirements for employers that place H-1B workers at third-party client sites and increase scrutiny of employers that have previously violated programme rules.
The third-party placement model is widely used by Indian IT and consulting companies. Under the proposed changes, employers might have to provide stronger proof that they have a genuine employer-employee relationship with the worker. They might also need to show that the employee will perform specialised work at the client location and submit additional documentation to support their applications.
Companies with a history of H-1B violations could face tougher reviews when filing future petitions.
The DHS also plans to expand an existing supplemental fee that applies to certain large employers. The fee currently covers initial H-1B petitions and changes of employer. Under the proposed rule, it would also apply to visa extension applications. The change would affect employers with more than 50 employees in the US if over half of their workforce is on H-1B or L-1 visas, increasing costs for outsourcing-focused firms.
GREEN CARD SPONSORSHIP MIGHT BECOME MORE EXPENSIVE
The Labor Department is also planning changes that could increase the cost of sponsoring foreign workers for H-1B visas and employment-based Green Cards.
It intends to revise the prevailing wage levels used for H-1B and PERM labour certification cases. Under the proposal, the entry-level wage would increase from the 17th percentile to the 34th percentile, while higher wage levels would also be raised. This would increase the minimum salaries employers must offer to sponsor foreign workers.
The department is also expected to propose changes to the PERM labour certification process, which is a key step in many employment-based Green Card applications. The planned updates include changes to recruitment standards, rules related to layoffs of US workers and stronger anti-discrimination measures.
It must be noted that, because of prolonged Green Card backlogs and uncertainty surrounding the US immigration system, many professionals are even exploring a move to the UK in search of a more predictable pathway to permanent residency.
US STUDENT VISAS AND OPT ALSO UNDER FOCUS
International students are also likely to be affected by the new changes in immigration laws.
India sent about 3.6 lakh students to the US in the 2024-25 academic year, making it the largest source of international students.
The DHS plans to end the current "duration of status" system for students and exchange visitors. At present, students are generally allowed to remain in the US as long as they continue to meet the conditions of their academic programme.
Under the proposed rule, students would instead receive fixed periods of stay. Once that period expires, they would need to apply for an extension to continue studying or remain in the country.
Another proposal, expected in February 2027, could tighten rules governing Optional Practical Training (OPT). The review includes the two-year STEM OPT extension as well as Curricular Practical Training (CPT), both of which allow eligible international students to gain work experience in the US.
H-4 SPOUSES COULD FACE WORK GAPS
The administration is also preparing changes to Employment Authorisation Documents (EADs), which allow certain foreign nationals to work legally in the US.
A final rule expected this month would end automatic extensions of EADs that had been available under an interim rule issued in October 2025.
The change could particularly affect H-4 visa holders, many of whom are spouses of H-1B workers. A large number of H-4 visa holders are Indians waiting for employment-based Green Cards. If their EAD renewal is delayed, they could temporarily lose their legal ability to work even if they applied for renewal on time.
Although renewal applications can be filed up to 180 days before expiry, processing times can still leave applicants without valid work authorisation for a period.
Immigration attorney Mitch Wexler of Fragomen Immigration Firm said the latest regulatory agendas provide a "roadmap" of the administration's priorities.
For now, the proposals have not become law. They must still go through the formal rulemaking process, which includes publication of draft rules, public comments and final approval. They could also face legal challenges before taking effect.
Even so, the proposals indicate that the Trump administration is moving towards tighter immigration rules. If implemented, they could increase compliance requirements for employers, raise hiring costs and create greater uncertainty for foreign professionals and students, especially those from India.
The Trump administration is preparing a fresh set of immigration rules that could make it more difficult for foreign professionals, students and employers to navigate the US immigration system. The proposed changes cover some of the most popular routes used by Indians to study and work in the United States. Therefore, Indians, who form one of the largest immigrant groups in the US, could especially face more hurdles under proposed changes to the H-1B programme, L-1 visas and student visas.
The proposals are part of the latest Unified Regulatory Agendas released by the US Departments of Homeland Security (DHS), Labor (DOL) and State (DOS). While none of the measures has taken effect yet, they offer the clearest indication of the administration's plans. If implemented, the changes could mean stricter eligibility rules, more paperwork, closer scrutiny of employers and higher costs for companies that hire foreign workers.
India is likely to be among the countries most affected because Indians account for a large share of H-1B visa holders, employment-based Green Card applicants and international students in the US.
H-1B RULES MIGHT BECOME STRICTER FROM AUGUST
One of the biggest proposed changes concerns the H-1B visa programme, which allows US companies to hire foreign professionals in specialised fields. Every year, 85,000 new H-1B visas are available under the annual cap.
The DHS is expected to publish a proposed rule in August that would tighten several parts of the programme. The proposal could narrow exemptions from the H-1B cap, which are currently available to universities and certain research organisations. It would also introduce stricter requirements for employers that place H-1B workers at third-party client sites and increase scrutiny of employers that have previously violated programme rules.
The third-party placement model is widely used by Indian IT and consulting companies. Under the proposed changes, employers might have to provide stronger proof that they have a genuine employer-employee relationship with the worker. They might also need to show that the employee will perform specialised work at the client location and submit additional documentation to support their applications.
Companies with a history of H-1B violations could face tougher reviews when filing future petitions.
The DHS also plans to expand an existing supplemental fee that applies to certain large employers. The fee currently covers initial H-1B petitions and changes of employer. Under the proposed rule, it would also apply to visa extension applications. The change would affect employers with more than 50 employees in the US if over half of their workforce is on H-1B or L-1 visas, increasing costs for outsourcing-focused firms.
GREEN CARD SPONSORSHIP MIGHT BECOME MORE EXPENSIVE
The Labor Department is also planning changes that could increase the cost of sponsoring foreign workers for H-1B visas and employment-based Green Cards.
It intends to revise the prevailing wage levels used for H-1B and PERM labour certification cases. Under the proposal, the entry-level wage would increase from the 17th percentile to the 34th percentile, while higher wage levels would also be raised. This would increase the minimum salaries employers must offer to sponsor foreign workers.
The department is also expected to propose changes to the PERM labour certification process, which is a key step in many employment-based Green Card applications. The planned updates include changes to recruitment standards, rules related to layoffs of US workers and stronger anti-discrimination measures.
It must be noted that, because of prolonged Green Card backlogs and uncertainty surrounding the US immigration system, many professionals are even exploring a move to the UK in search of a more predictable pathway to permanent residency.
US STUDENT VISAS AND OPT ALSO UNDER FOCUS
International students are also likely to be affected by the new changes in immigration laws.
India sent about 3.6 lakh students to the US in the 2024-25 academic year, making it the largest source of international students.
The DHS plans to end the current "duration of status" system for students and exchange visitors. At present, students are generally allowed to remain in the US as long as they continue to meet the conditions of their academic programme.
Under the proposed rule, students would instead receive fixed periods of stay. Once that period expires, they would need to apply for an extension to continue studying or remain in the country.
Another proposal, expected in February 2027, could tighten rules governing Optional Practical Training (OPT). The review includes the two-year STEM OPT extension as well as Curricular Practical Training (CPT), both of which allow eligible international students to gain work experience in the US.
H-4 SPOUSES COULD FACE WORK GAPS
The administration is also preparing changes to Employment Authorisation Documents (EADs), which allow certain foreign nationals to work legally in the US.
A final rule expected this month would end automatic extensions of EADs that had been available under an interim rule issued in October 2025.
The change could particularly affect H-4 visa holders, many of whom are spouses of H-1B workers. A large number of H-4 visa holders are Indians waiting for employment-based Green Cards. If their EAD renewal is delayed, they could temporarily lose their legal ability to work even if they applied for renewal on time.
Although renewal applications can be filed up to 180 days before expiry, processing times can still leave applicants without valid work authorisation for a period.
Immigration attorney Mitch Wexler of Fragomen Immigration Firm said the latest regulatory agendas provide a "roadmap" of the administration's priorities.
For now, the proposals have not become law. They must still go through the formal rulemaking process, which includes publication of draft rules, public comments and final approval. They could also face legal challenges before taking effect.
Even so, the proposals indicate that the Trump administration is moving towards tighter immigration rules. If implemented, they could increase compliance requirements for employers, raise hiring costs and create greater uncertainty for foreign professionals and students, especially those from India.
