Big changes soon to US H-1B, green card, student visas: Why Indians will be the most hit

The United States is preparing one of the most extensive overhauls of its legal immigration system in recent years, with the administration of US President Donald Trump laying out a broad regulatory agenda that could reshape the experience of foreign workers, international students and employers alike.

The proposals, spread across the latest regulatory agendas released by the US Department of Homeland Security (DHS), the Department of Labor (DOL) and the Department of State (DOS), cover almost every major pathway used by skilled immigrants.

They include stricter H-1B visa rules, changes to employment-based green cards, revisions to prevailing wage requirements, modifications to student visa regulations, alterations to work authorisation policies and additional compliance measures affecting both applicants and sponsoring employers.

Unlike legislation passed by Congress, these changes are being pursued through the federal rulemaking process. That means most of them are not yet law and will first appear as proposed regulations before moving through public consultation and review.

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India supplies the largest number of H-1B workers employed in the United States, accounts for the biggest share of applicants waiting for employment-based permanent residence and has recently overtaken every other country as the largest source of international students studying at American universities.

Because Indian professionals and students feature prominently at nearly every stage of the US legal immigration system, changes affecting one category often have consequences throughout the entire immigration journey.

H-1B visa programme: What is changing?

For decades, the H-1B system has allowed American employers to hire foreign workers in specialised occupations requiring advanced knowledge and technical expertise. Indian professionals dominate this programme, particularly in information technology, software development, engineering, consulting and financial services.

According to the DHS regulatory agenda, a proposed rule expected in August would revise eligibility for certain exemptions from the annual H-1B cap while simultaneously strengthening oversight of companies employing H-1B workers.

One of the biggest areas of focus is the widespread practice of assigning H-1B employees to third-party client locations.

This employment model has long been used by IT consulting and outsourcing companies, particularly those headquartered in India, where employees remain on the sponsoring company's payroll while working at a client's office elsewhere in the United States.

The proposed regulations would require employers to produce stronger evidence that a genuine employer-employee relationship continues to exist even when the worker is stationed at a client site.

Officials are also expected to require employers to demonstrate that workers are actually performing specialty occupation duties at those locations rather than carrying out responsibilities outside the scope of the approved visa petition.

In addition, employers may be required to maintain substantially more documentation regarding individual assignments, client relationships and day-to-day employment arrangements.

The proposals also indicate that companies with a history of H-1B compliance violations may face significantly greater scrutiny when filing future visa petitions.

Another important proposal concerns employers that rely heavily on H-1B and L-1 workers.

Current rules require certain companies employing more than 50 workers in the United States — where more than half of those employees hold H-1B or L-1 visas — to pay an additional surcharge when sponsoring new workers or hiring employees from another company.

The administration now plans to expand that requirement. Under the proposed rule expected in July, the same surcharge would also apply whenever employers seek extensions for existing H-1B employees.

For companies that routinely renew work visas for experienced employees who remain in the United States over several years, the cumulative financial impact could be massive.

The administration has also continued pursuing higher fee structures for employers that depend extensively on H-1B and L-1 workers, despite legal challenges in federal courts.

The Department of Labor is preparing new prevailing wage regulations covering H-1B visas, H-1B1 visas, E-3 visas and employment-based green card sponsorship through the PERM labour certification process.

The proposal would raise the minimum wage threshold for entry-level positions from the current 17th percentile to the 34th percentile for a particular occupation and geographic area.

Employers would have to offer substantially higher salaries before they could sponsor foreign professionals under these visa programmes.

For foreign workers, especially those beginning their careers, the revised salary requirements could reduce the number of entry-level opportunities available because employers may become more selective when deciding whether to sponsor overseas talent.

Green cards: What is changing?

Indian applicants who already face some of the world's longest waiting periods for permanent residence, will also see changes in the employment-based green card system.

One of the most notable administrative changes came in May, when US Citizenship and Immigration Services (USCIS) revised its guidance on Adjustment of Status (AOS).

Traditionally, Adjustment of Status has served as the mechanism allowing eligible foreign nationals already living in the United States to apply for permanent residence without leaving the country.

The updated USCIS guidance, however, recasts that process as one based on "discretion and administrative grace." At the same time, USCIS has increasingly encouraged applicants to pursue immigrant visas through consular processing overseas rather than completing the process from within the United States.

For many applicants, this could mean returning to their home country to complete visa processing instead of remaining in the United States while their application is finalised.

According to the July 2026 Visa Bulletin, the EB-2 category for Indian applicants became officially "Unavailable" for the remainder of the fiscal year, effectively halting new approvals in one of the most commonly used employment-based categories.

Meanwhile, the EB-1 India category retrogressed to October 15, 2022, illustrating continued pressure even on immigration routes designed for highly skilled professionals.

These developments create an additional bottleneck for applicants who have already spent years progressing through the employment-based immigration system.

Beyond visa availability, the Department of Labor is also preparing to modernise the PERM labour certification programme, the first formal stage of most employment-based green card applications. The current PERM framework has remained largely unchanged since 2004.

The proposed overhaul would update recruitment procedures to reflect contemporary hiring practices and technological developments that have transformed the labour market over the past two decades.

The proposal would also introduce stricter rules governing layoffs before employers sponsor foreign workers and strengthen compliance with anti-discrimination requirements throughout the recruitment process.

For employers, the revised PERM framework could require more extensive documentation demonstrating that qualified American workers were appropriately considered before sponsorship of foreign employees.

International students: What is changing?

For years, the United States has remained one of the world's most popular destinations for higher education, with hundreds of thousands of foreign students enrolling in American universities every academic year.

Indians now form the single largest international student community in the country, making any change to student visa regulations particularly consequential.

According to the latest Open Doors Report, approximately 360,000 Indian students were enrolled in US educational institutions during the 2024-25 academic year. They accounted for nearly 31 per cent of the country's roughly 1.1 million international students.

The administration is now preparing to replace one of the defining features of the current student visa framework — the "duration of status" system.

At present, most F-1 student visa holders are admitted for the duration of their approved academic programme.

As long as students remain enrolled, comply with visa conditions and maintain their academic status, they are generally permitted to stay in the United States without having to repeatedly renew their authorised period of stay.

The proposed regulation would replace that long-standing arrangement with fixed admission periods. Instead of remaining in the country for as long as their studies continue, students would receive permission to stay only until a predetermined expiration date.

If their academic programme extends beyond that authorised period, they would be required to submit an application seeking an extension from US immigration authorities.

Earlier draft proposals had suggested a maximum validity period of four years before extensions would become necessary, although the final regulation has yet to be published.

The proposal completed review by the Office of Management and Budget (OMB) in June and is expected to move forward through the regulatory process.

Although the precise duration has not yet been confirmed, the broader policy direction is clear that students would no longer enjoy open-ended admission tied directly to the length of their studies.

Each extension application would require additional paperwork, filing fees and processing by immigration authorities. Students whose applications remain pending — or whose requests are denied — could face uncertainty regarding their ability to continue studying in the United States.

For students pursuing lengthy academic programmes, doctoral research or professional degrees extending beyond several years, repeated extensions could become a regular feature of their immigration journey.

The administration is also examining programmes that allow international students to gain work experience after completing their studies. Among the proposals scheduled for future consideration are revisions to Optional Practical Training (OPT), the two-year STEM OPT extension and Curricular Practical Training (CPT).

These programmes currently serve as the principal bridge between American universities and the US workforce.

OPT allows eligible graduates to work in the United States after completing their studies, while STEM graduates may qualify for an additional two-year extension. CPT, meanwhile, enables certain students to undertake employment or internships directly related to their academic curriculum while still enrolled.

Although detailed regulatory language has not yet been released, the administration has indicated that it intends to review both the STEM OPT extension and CPT.

Any reduction in eligibility or duration could directly affect international graduates hoping to transition from university into professional employment before eventually applying for H-1B visas.

Because the US employment-based immigration system functions as a connected pathway — beginning with student visas, progressing through OPT and H-1B employment before culminating in permanent residency — changes affecting educational visas can influence opportunities much later in an individual's career.

What other changes are on the horizon?

One of the most immediate concerns involves Employment Authorization Documents (EADs), commonly known as work permits.

The administration is expected to finalise a regulation ending the automatic extension that currently allows certain applicants to continue working while their renewal applications remain under review.

Under the existing system, eligible individuals whose work authorisation is due to expire may continue employment for a temporary period provided they have submitted a timely renewal application.

The proposed rule would formally remove that safeguard.

Instead, applicants would generally be required to stop working once their existing employment authorisation expires and wait until US Citizenship and Immigration Services (USCIS) approves their renewal request before returning to work.

The change is expected to have a particularly significant impact on H-4 visa holders who possess Employment Authorization Documents.

Many H-4 visa holders are spouses of H-1B professionals who themselves are progressing through the lengthy employment-based green card process.

Current rules permit eligible applicants to submit EAD renewal requests only up to 180 days before the document expires. However, USCIS processing times frequently extend beyond that period.

If automatic extensions are withdrawn while processing timelines remain unchanged, many applicants could experience unavoidable gaps in employment despite submitting renewal applications within the permitted timeframe.

For families already navigating long green card waiting periods, temporary interruptions in employment could create additional financial and professional burden.

The administration is also proposing broader biometric collection requirements throughout the immigration system.

The proposal also contemplates requiring sponsors and authorised company representatives involved in immigration filings to provide biometric information in certain circumstances.

Another proposal would revise immigration filing fees. DHS is expected to introduce higher baseline application fees later this year, affecting multiple immigration categories.

The regulatory agenda also includes adjustments to EB-5 investor visa fees, with revised charges expected to be announced in September.

Although fee increases alone do not alter eligibility requirements, they increase the overall financial cost of navigating the US immigration system.

The administration is also reviewing educational standards for applicants seeking US citizenship through naturalisation.

Among the proposals under consideration are changes to the citizenship examination process, including the possibility of introducing third-party testing rather than relying solely on existing government-administered procedures.

With inputs from agencies