The Trump administration is preparing a fresh round of immigration rule changes that could significantly reshape the H-1B visa programme, tighten sponsorship requirements for employment-based green cards, change visa rules for international students and end the automatic extension of Employment Authorization Documents (EADs). If implemented, Indian professionals and students are expected to be among those most affected.
The proposed measures are outlined in the latest regulatory agendas of the US Department of Homeland Security (DHS), the Department of Labour (DOL) and the Department of State (DOS). These proposals offer the clearest indication so far of the administration’s immigration priorities.
Higher Costs for H-1B and L-1 Employers
One of the first changes, expected to be finalised this month, would increase costs for companies that rely heavily on H-1B and L-1 visa holders.
At present, employers with more than 50 employees in the United States, where over half the workforce consists of H-1B or L-1 visa holders, must pay an additional $4,000 for eligible H-1B petitions and $4,500 for L-1 petitions when sponsoring a worker for an initial period of stay or after a change of employer.
The proposed rule would extend these fees to extension applications, increasing costs for employers, particularly large technology companies.
Stricter H-1B Programme
A closely watched proposal, expected in August, aims to tighten the H-1B programme further.
The proposal would introduce additional requirements for employers placing H-1B workers at third-party client locations—a staffing model widely used by Indian IT and consulting companies.
Although the draft rule has not yet been released, employers may have to:
Demonstrate a genuine employer-employee relationship.
Show that workers will perform specialty occupation duties at client locations.
Maintain greater documentation of work assignments.
Employers with a history of H-1B violations are also expected to face increased scrutiny.
Since the proposal is still under development, it will undergo a public consultation process before being finalised.
Higher Wage Requirements
Separately, the Department of Labour is moving ahead with a proposal to raise prevailing wage levels for H-1B and employment-based green card cases.
If implemented, the minimum wage threshold for entry-level positions would increase significantly, raising sponsorship costs for employers.
Immigration experts believe the proposal would increase both the financial and administrative burden of hiring foreign professionals.
Mitch Wexler, Senior Counsel at Fragomen, said the regulatory agenda provides an important roadmap of where the administration intends to focus its immigration efforts over the coming months.
Changes to Green Card Sponsorship
The Department of Labour is also expected to propose an overhaul of the PERM labour certification process, the first step in employer-sponsored green card applications.
The proposal includes:
Updating recruitment standards.
Tightening rules related to layoffs of US workers.
Strengthening compliance with anti-discrimination requirements.
New Rules for International Students
The regulatory agenda also includes tighter rules for international students.
This month, DHS is expected to issue a final rule replacing the long-standing “duration of status” system with fixed-period student visas. Under the proposed system, students would have to apply for visa extensions to continue their studies.
Another proposal, scheduled for early 2027, would amend the Optional Practical Training (OPT) programme, which allows international graduates to gain work experience in the United States.
India remains the largest source of international students in the US.
According to the latest Open Doors Report, around 3.6 lakh Indian students were studying in the United States during the 2024-25 academic year, accounting for nearly 31% of all international students.
The requirement for periodic visa extensions could increase costs and create greater uncertainty for students.
End of Automatic EAD Extensions
Later this month, DHS is also expected to finalise a rule ending the automatic extension of Employment Authorization Documents (EADs).
The Times of India had earlier reported on the interim-final rule issued last October, noting that the proposed change could affect nearly one lakh Indian H-4 spouse visa holders.
Since H-4 EAD holders can currently apply for renewal only 180 days before expiry, while USCIS processing often takes longer, many could face interruptions in employment while waiting for renewed work permits if automatic extensions are removed.
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