The Donald Trump administration is preparing a series of immigration rule changes that could significantly alter the H-1B visa programme, employment-based green cards and student visa regulations in the United States.
The proposals, outlined in the latest regulatory agendas issued by the US Department of Homeland Security (DHS), Department of Labor (DOL) and Department of State (DOS), are expected to roll out over the coming months through the formal rulemaking process.
If implemented, Indian professionals, IT companies and students are likely to be among those most affected because they represent one of the largest groups using these immigration pathways.
Here is a look at the major changes under consideration.
H-1B rules may become stricter
One of the biggest proposals concerns the H-1B visa programme.
According to the DHS regulatory agenda, a proposed rule expected in August would tighten eligibility for certain exemptions from the annual H-1B cap, introduce stricter conditions for companies placing H-1B employees at third-party client locations and increase scrutiny of employers with a history of programme violations.
The proposed changes could particularly affect Indian IT and consulting companies, many of which deploy H-1B professionals at client sites across the United States.
The administration is also expected to require employers to provide stronger evidence of a genuine employer-employee relationship, prove that workers perform specialty occupation duties at client locations and maintain additional documentation of assignments.
Companies with previous H-1B compliance violations may face closer review of future visa petitions.
Higher costs for employers relying on H-1B workers
Another rule expected in July would expand an existing surcharge paid by certain employers that rely heavily on H-1B and L-1 workers.
Currently, companies with more than 50 US employees where over half the workforce holds H-1B or L-1 visas pay an additional fee only when sponsoring new workers or hiring employees from another company.
Under the proposed change, the fee would also apply when employers seek extensions for existing employees.
This could increase costs for several large Indian IT outsourcing companies that regularly renew H-1B visas for long-term employees.
Prevailing wage requirements may increase
The Department of Labor is also expected to finalise new prevailing wage regulations covering both H-1B visas and employment-based green cards.
Under the proposal, the wage threshold for entry-level positions would rise from the current 17th percentile to the 34th percentile for a particular occupation and location.
If implemented, employers sponsoring foreign workers would have to offer higher salaries, increasing the overall cost of hiring through both temporary work visas and permanent residence programmes.
Green card sponsorship process set for overhaul
The Department of Labor also plans to update the PERM labour certification process, which employers must complete before sponsoring most employment-based green cards.
The proposal, expected this month, would modernise recruitment standards to reflect current hiring practices, introduce tighter rules regarding layoffs before sponsoring foreign workers and strengthen compliance with anti-discrimination requirements during recruitment.
Officials say the existing PERM framework has remained largely unchanged since 2004.
Student visas may no longer remain open-ended
International students could also face significant changes.
The DHS is expected to replace the current “duration of status” system under which students remain in the US for as long as they continue their academic programme.
Instead, student visas would be issued for a fixed period. Earlier draft proposals suggested a maximum validity of four years, after which students would need to apply for extensions from US immigration authorities.
The final regulation is expected this month.
India remains the largest source of international students in the United States.
According to the latest Open Doors Report, around 360,000 Indian students studied in the US during the 2024-25 academic year, accounting for nearly 31 per cent of the country’s approximately 1.1 million international students.
Possible changes to OPT programme
The administration is also planning future changes to the Optional Practical Training (OPT) programme.
A proposal currently scheduled for February 2027 is expected to review both the two-year STEM OPT extension and Curricular Practical Training (CPT).
Although detailed proposals have not yet been released, any restrictions could directly affect international graduates seeking work experience after completing their studies.
Automatic work permit extensions to end
Another significant change concerns Employment Authorization Documents (EADs).
A final regulation expected this month would formally end the automatic extension that currently allows certain applicants to continue working while renewal applications remain pending.
The change is expected to particularly affect H-4 visa holders, many of whom are spouses of H-1B professionals pursuing employment-based green cards.
Under the new rule, eligible applicants would have to stop working once their existing work permit expires and wait until the US Citizenship and Immigration Services (USCIS) approves the renewal application.
Since H-4 EAD renewal applications can only be submitted up to 180 days before expiry and USCIS processing often takes longer, applicants could face gaps in employment.