The Donald Trump administration is preparing a new set of immigration rules that could make it more difficult for foreign professionals, students and employers to navigate the US immigration system.
The proposed changes are part of the latest Unified Regulatory Agendas released by the US Departments of Homeland Security (DHS), Labor (DOL) and State (DOS). Although none of the proposals has become law yet, they provide the clearest indication of the administration’s plans.
If implemented, the new rules could bring stricter eligibility requirements, more paperwork, closer scrutiny of employers and higher hiring costs for companies that employ foreign workers.
India is expected to be among the countries most affected, as Indians make up one of the largest groups of H-1B visa holders, employment-based Green Card applicants and international students in the US.
H-1B Visa Rules Could Become Stricter
One of the biggest proposed changes relates to the H-1B visa programme, which allows US companies to hire skilled foreign professionals in specialised fields. Every year, 85,000 new H-1B visas are issued under the annual cap.
The Department of Homeland Security is expected to release a proposed rule in August that could tighten several aspects of the programme.
The proposal could reduce exemptions from the H-1B visa cap that are currently available to universities and certain research organisations. It would also introduce stricter rules for employers who place H-1B workers at third-party client locations and increase scrutiny of employers with a history of violating H-1B programme rules.
Indian IT Companies May Face More Compliance Requirements
The third-party placement model is widely used by Indian IT and consulting firms.
Under the proposed rules, employers may have to provide stronger proof of a genuine employer-employee relationship. They may also need to show that the employee will perform specialised work at the client site and submit additional supporting documents with their visa applications.
Companies that have previously violated H-1B rules could face more rigorous reviews when filing future visa petitions.
Visa Extension Fees Could Increase
The DHS is also planning to expand an existing supplemental fee that currently applies to certain large employers filing initial H-1B petitions or change-of-employer applications. Under the proposed rule, the fee would also apply to H-1B extension applications.
The change would affect companies with more than 50 employees in the US if more than half of their workforce is on H-1B or L-1 visas. This is expected to increase costs for outsourcing-focused firms.
Higher Salary Requirements and Green Card Changes
The US Labor Department is planning changes that could make sponsoring foreign workers more expensive. It intends to revise the prevailing wage levels used for H-1B visas and PERM labour certification cases.
Under the proposal, the entry-level wage requirement would rise from the 17th percentile to the 34th percentile, while higher wage levels would also increase. This would raise the minimum salaries employers must offer when sponsoring foreign workers.
The department also plans to update the PERM labour certification process, which is an important step for many employment-based Green Card applications.
The proposed changes include revised recruitment standards, updated rules related to layoffs of US workers and stronger anti-discrimination measures.
Because of long Green Card waiting periods and continuing uncertainty in the US immigration system, many skilled professionals are also exploring the UK as a more predictable route to permanent residency.
Student Visa Rules Could Also Change
International students may also be affected by the proposed immigration reforms. India sent around 3.6 lakh students to the United States during the 2024-25 academic year, making it the largest source of international students in the country.
At present, international students remain in the US under a “duration of status” system, which allows them to stay as long as they continue to meet the conditions of their academic programme.
The DHS now plans to replace this system with fixed periods of stay. Once the approved period ends, students would need to apply for an extension to continue studying or remain in the country.
OPT and CPT Programmes Under Review
Another proposal, expected in February 2027, could tighten rules governing Optional Practical Training (OPT).
The review will cover both the two-year STEM OPT extension and Curricular Practical Training (CPT), programmes that allow eligible international students to gain work experience in the US while studying or after graduation.
H-4 Visa Holders Could Face Employment Gaps
The Trump administration is also preparing changes to Employment Authorisation Documents (EADs), which allow certain foreign nationals to work legally in the US.
A final rule expected this month would end the automatic extensions of EADs that were introduced under an interim rule in October 2025.
The change could particularly affect H-4 visa holders, many of whom are spouses of H-1B workers. A large number of H-4 visa holders are Indians waiting for employment-based Green Cards.
If EAD renewal applications are delayed, these individuals could temporarily lose their legal right to work, even if they applied for renewal before their existing work permit expired.
Although renewal applications can be submitted up to 180 days before expiry, processing delays could still leave applicants without valid work authorisation for some time.
Proposals Are Not Yet Law
Immigration attorney Mitch Wexler of Fragomen Immigration Firm said the latest regulatory agendas provide a “roadmap” of the administration’s immigration priorities.
For now, none of the proposals has become law. They must still go through the formal rulemaking process, which includes the publication of draft rules, a public consultation period and final approval. The proposals could also face legal challenges before taking effect.
However, the proposed changes clearly indicate that the Trump administration is moving towards tighter immigration policies. If implemented, they could increase compliance requirements for employers, raise hiring costs and create greater uncertainty for foreign professionals and international students—especially those from India.
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