The Trump administration is planning sweeping changes to US immigration rules that could affect H-1B visas, employment-based Green Cards and foreign student programs, with several proposals expected to move forward as early as July and August.
The proposed changes could significantly increase compliance costs, paperwork and legal uncertainty for Indian professionals and students, as Indians account for the majority of H-1B visa holders and employment-based Green Card applicants.
The reforms target several of the most common pathways used by Indians to study and work in the US. Proposed changes to the H-1B program, L-1 visas and student visa rules could create additional hurdles for one of the largest immigrant communities in the country.
The proposals are part of the latest Unified Regulatory Agendas released by the US Departments of Homeland Security (DHS), Labour (DOL) and State (DOS). While none of the measures has been implemented yet, the agenda offers the clearest indication of the administration’s immigration priorities.
If approved, the changes could introduce stricter eligibility requirements, additional documentation, tougher employer compliance checks and higher costs for companies hiring foreign workers.
One of the most significant proposals concerns the H-1B visa program, which allows US companies to hire highly skilled foreign professionals. The program is capped at 85,000 new visas annually.
The DHS is expected to publish a draft rule in August that would tighten several aspects of the program. The proposal could narrow existing exemptions from the H-1B cap for universities and certain research organisations.
It would also strengthen oversight of employers with previous compliance violations and impose stricter requirements on companies that place H-1B workers at third-party client sites.
The third-party placement model is widely used by Indian IT and consulting firms. Under the proposed rules, employers may have to provide stronger evidence of a bona fide employer-employee relationship, submit additional supporting documentation and demonstrate that H-1B workers will perform specialised duties at client locations.
Separately, the Labour Department is considering reforms that could increase the cost of sponsoring foreign workers for H-1B visas and employment-based Green Cards.
International students could also be affected. India was the largest source of international students in the US during the 2024-25 academic year, with more than 360,000 Indian students enrolled.
The DHS has proposed replacing the current “duration of status” system, which allows students to remain in the US as long as they continue to meet the requirements of their academic programme. Instead, students would be granted fixed periods of stay and would need to apply for extensions to continue studying or remain in the country.
Essential Business Intelligence,
Sharp Market Insights,
Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
