In its pursuit to overhaul the H-1B visa programme, the Donald Trump administration in the United States is planning to go beyond the initial shock of the $100,000 mandatory fee and impose additional immigration restrictions on how employers can use the permit and who qualifies for it.
The Department of Homeland Security has proposed a rule change in its regulatory agenda to modify the H-1B visa category. The proposals, formally listed in the Federal Register under the title of ‘Reforming the H-1B Nonimmigrant Visa Classification Program’, include several technical aspects, like reviewing eligibility for cap exemptions, providing greater scrutiny for employers that have violated programme requirements, and increasing oversight over third-party placements, among other provisions.
It is not clear if the DHS plans to potentially narrow which employers and positions are exempt from the annual cap. But if the Trump administration changes the exemption caps, the move could affect nonprofit research organisations, universities, and healthcare institutions that currently benefit from exemptions, Newsweek reported.
“These changes are intended to improve the integrity of the H-1B nonimmigrant program and better protect US workers’ wages and working conditions,” the proposal said. The changes are expected to impact thousands of Indian students and young professionals hoping to work in the US.
According to the regulatory notice, December 2025 is a possible publication date for the rule.
Earlier reports said that the Trump administration was considering replacing the traditional H-1B visa lottery with a wage-based selection system.
Why H-1B Visa Matters
The H-1B, a temporary visa category, is important for high-skilled foreign nationals, including Indians, as it’s typically the only practical way for them to work in America long-term before eventually gaining permanent residence (a green card). Created by the 1990 Immigration Act, H-1B visas are meant to allow American companies to bring in people with technical skills that are hard to find in the United States.
The visas are not intended for people who want to stay permanently. Some eventually do, but only after transitioning to different immigration statuses. The US government has set an annual limit of 65,000 on H-1B visas, with an exemption of 20,000 for individuals with a master’s or higher degree from a US university. Those visas are handed out by a lottery. Some employers, such as universities and nonprofits, are exempt from the limits.
According to a report by the Pew Research Centre, nearly three-quarters of those whose applications were approved in 2023 came from India.
At least 60 per cent of the H-1B visas approved since 2012 have been for computer-related jobs, according to the Pew Research Centre. But hospitals, banks, universities and a wide range of other employers can and do apply for H-1B visas.
Research indicates that H-1B visa holders are often paid the same or higher salaries than American employees with comparable levels of education and experience, as the US law mandates that, in addition to government fees (often over $6,000), employers must pay the higher of the actual or prevailing wage paid to American professionals with similar experience and qualifications.