Trump Administration Plans Major H-1B, Green Card and Student Visa Changes, Indians Could Be Hit Hardest

The Trump administration is preparing a series of major immigration policy changes that could reshape H-1B visas, employment-based green cards, student visas and work permits in the United States.

The proposals are listed in the latest regulatory agendas of the US Department of Homeland Security, Department of Labor and Department of State. Most of them are still proposals and must go through the formal rulemaking process before taking effect. (Moneycontrol)

Indian professionals, students and technology companies could be among the most affected because Indians represent one of the largest groups using these immigration routes.

H-1B Rules Could Become Stricter

A proposed rule expected in August could tighten exemptions from the annual H-1B cap and introduce stricter conditions for companies that place employees at third-party client locations.

Employers may be required to provide stronger proof of a genuine employer-employee relationship, show that workers are performing specialty-occupation duties and maintain more documentation about client assignments.

Companies with a history of H-1B compliance violations may also face additional scrutiny. These measures could particularly affect Indian IT and consulting firms that regularly deploy professionals at client sites across the US. (Moneycontrol)

Visa Extensions May Become More Expensive

Another proposed change would expand an existing surcharge imposed on companies that heavily depend on H-1B and L-1 workers.

At present, the additional fee generally applies when eligible employers sponsor new workers or transfer employees. Under the proposed change, it could also apply when employers request extensions for existing workers.

This could significantly increase costs for Indian outsourcing companies that frequently renew visas for long-term employees. (Moneycontrol)

Higher Salary Requirements

The US Department of Labor is also considering higher prevailing-wage requirements for H-1B visas and employment-based green cards.

The proposed threshold for entry-level positions could rise from the 17th percentile to the 34th percentile for the relevant job and location.

Employers would therefore have to offer higher salaries to foreign workers, making visa sponsorship more expensive and potentially reducing entry-level opportunities. (Moneycontrol)

Green Card Process Could Be Overhauled

The administration also plans to update the PERM labour-certification process, which employers must usually complete before sponsoring foreign workers for employment-based permanent residence.

Possible changes include modernised recruitment standards, stricter rules involving layoffs and stronger anti-discrimination compliance requirements.

The current PERM system has remained largely unchanged since 2004. (Moneycontrol)

Student Visas Could Get Fixed Expiry Dates

International students may also face a major change.

Currently, many students are admitted under a “duration of status” system, allowing them to remain in the US while they continue an authorised academic programme.

The proposed rule could replace that system with visas issued for a fixed period. Earlier drafts suggested a maximum period of four years, after which students would need to apply for an extension.

This would have a major impact on Indians. Around 360,000 Indian students studied in the United States during the 2024–25 academic year, representing nearly 31% of the country’s approximately 1.1 million international students, according to figures cited by Moneycontrol. (Moneycontrol)

OPT and CPT May Also Face Review

The administration is also considering future changes to Optional Practical Training and Curricular Practical Training.

A proposal scheduled for February 2027 is expected to review both the two-year STEM OPT extension and CPT rules.

Although the details have not yet been released, restrictions could affect international graduates seeking US work experience after completing their studies. (Moneycontrol)

Automatic Work-Permit Extensions May End

Another proposed rule could formally end automatic extensions for certain Employment Authorization Documents.

This could particularly affect H-4 visa holders, including spouses of H-1B professionals who are waiting for employment-based green cards.

Under the proposed system, workers may have to stop working when their existing permit expires and wait until the renewal is approved, potentially creating gaps in employment and income. (Moneycontrol)

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