Indian students, H-1B workers may face uncertainty as US plans tighter visa rules

The Trump administration is preparing a new set of immigration rules that could tighten the H-1B visa programme, increase costs for employers sponsoring foreign workers, change visa rules for international students and end automatic extensions for certain work permits. According to a report by Lubna Kably in Times of India, if implemented, the proposals are expected to affect Indian professionals, students and H-4 visa holders, according to the latest regulatory agendas of the US Departments of Homeland Security (DHS), Labour (DOL) and State (DOS).

The regulatory agenda outlines the administration's planned immigration priorities over the coming months. Some measures are expected to be issued as final rules, while others will first be released as proposals for public consultation before they take effect.

Also read: US plans changes to employment-based green card certification process

Higher H-1B costs for employers

One of the first changes, expected this month, will increase costs for employers that rely heavily on H-1B and L-1 workers.

At present, companies with more than 50 employees in the US, where over half of the workforce holds H-1B or L-1 visas, pay an additional $4,000 fee for eligible H-1B petitions and $4,500 for L-1 petitions only when sponsoring a worker for an initial stay or after a change of employer.

Under the proposed rule, these additional fees would also apply to extension petitions, increasing costs for employers, particularly large technology companies.

H-1B rules may become stricter

Another proposal, expected in August, aims to tighten the H-1B programme, especially for employers placing workers at third-party client locations, a model commonly used by Indian IT and consulting firms, as reported by Lubna in TOI report.

Although the draft rule has not yet been released, employers may be required to prove a genuine employer-employee relationship, show that workers are performing specialty occupation duties at client sites and maintain more detailed records of assignments. Companies with a history of H-1B violations could also face greater scrutiny.

Also read: New US visa rule could change how long international students can stay in the country

As this is a proposed rule, it will go through a public consultation process before any final decision is made.

Higher wage requirements, changes to green card process

The Department of Labour is also working on a proposal to raise prevailing wage levels for H-1B and employment-based green card applications.

If implemented, the higher wage requirements would increase the minimum salary threshold for entry-level positions, making it more expensive for employers to sponsor foreign professionals.

The department also plans to update the PERM labour certification process, which is the first stage of employer-sponsored green card applications. The proposal would revise recruitment standards, tighten rules related to layoffs of US workers and strengthen compliance with anti-discrimination requirements.

Student visa rules may change

The regulatory agenda also includes changes affecting international students.

DHS is expected to issue a final rule this month that would replace the current "duration of status" system with fixed-period student visas. Under the new system, students would need to apply for visa extensions if they wish to continue their studies, as per .

According to Lubna's report, another proposal, expected in early 2027, would introduce changes to the Optional Practical Training (OPT) programme, which allows international graduates to gain work experience in the US.

India remains the largest source of international students in the US. According to the latest Open Doors Report, around 3.6 lakh Indian students studied in the US duri
ng the 2024-25 academic year, accounting for nearly 31% of all international students. The proposed visa changes could increase costs and create more uncertainty for students who need to remain in the country for longer study programmes.

H-4 spouses may face work interruptions

Later this month, DHS is also expected to finalise a rule ending the automatic extension of Employment Authorisation Documents (EADs).

As per the report, the change could affect nearly one lakh Indian H-4 spouses of H-1B visa holders. Since H-4 EAD holders can apply for renewal only 180 days before their permits expire, while USCIS processing often takes longer, many could face gaps in employment while waiting for renewed work authorisation.

(With TOI inputs)