The Trump administration has unveiled an ambitious immigration regulatory agenda that could reshape the US employment-based immigration system, with proposed changes targeting the H-1B visa programme,
employment-based Green Cards, international student visas, work authorisation, prevailing wages and employer compliance.
The proposals, outlined in the latest regulatory agendas released by the US Departments of Homeland Security, Labor and State, are not yet law. They will need to go through the formal rulemaking process before taking effect.
However, they offer a clear picture of the administration’s immigration priorities over the coming months and could have far-reaching implications for Indian professionals, students and employers.
Here’s a closer look at the key proposals and what they could mean.
Why Indians Could Be Among The Most Affected
Indians make up the overwhelming majority of H-1B visa holders in the United States and are among the largest beneficiaries of employment-based Green Cards.
The student population is equally significant. According to the latest Open Doors Report, there were around 3.6 lakh Indian students studying in the US during the 2024-25 academic year, accounting for nearly 31 per cent of all international students.
Many Indian technology companies also rely on the H-1B programme to deploy skilled professionals to US client locations, while H-4 visa holders — spouses of H-1B workers — depend on Employment Authorisation Documents to work or be self-employed.
As a result, even targeted regulatory changes could have a wide impact on Indians living, studying or planning to work in the US.
H-1B Rules Could Become More Stringent
Expected to be proposed in August this year, the rule would tighten eligibility for certain exemptions from the annual H-1B cap of 85,000 visas, introduce stricter requirements for employers placing H-1B workers at third-party client sites and subject employers with a history of programme violations to greater scrutiny.
The third-party placement proposal is particularly significant for Indian IT and consulting firms, many of which deploy H-1B employees to work at client locations across the US.
While the draft rule has not yet been published, employers may be required to demonstrate a genuine employer-employee relationship, prove that workers will perform specialty occupation duties at client sites and maintain more detailed documentation of assignments.
The administration also plans to step up compliance and enforcement by increasing scrutiny of employers found to have violated H-1B requirements when they submit future visa petitions.
Higher Salary Thresholds Could Raise Hiring Costs
The Department of Labor intends to revise prevailing wage calculations used for H-1B, H-1B1, E-3 visa applications and employment-based Green Cards processed through the PERM system.
If implemented as proposed, the minimum entry-level wage would increase from the 17th percentile to the 34th percentile for a given occupation and geographic area.
That would require employers to offer higher salaries when sponsoring foreign workers, potentially reducing opportunities for entry-level hires while increasing labour costs.
Green Card Recruitment Process Set For Overhaul
The administration is also planning a major overhaul of the PERM labour certification process, the first stage for many employment-based Green Card applications.
According to the Labor Department, the existing recruitment framework introduced in 2004 no longer reflects today’s hiring practices or technological advances.
The proposed changes would modernise labour market testing requirements, strengthen protections for US workers affected by layoffs before employers hire overseas talent and tighten compliance with anti-discrimination requirements during recruitment.
For companies sponsoring foreign workers for permanent residency, the process could become more rigorous, with stricter recruitment standards before applications are approved.
International Students May Face New Restrictions
International students could see some of the most significant changes under the proposed agenda.
The Department of Homeland Security plans to replace the current “duration of status” system, which allows students to remain in the US for the length of their approved academic programme, with fixed periods of admission for F-1 and J-1 visa holders.
Earlier draft proposals suggested a maximum stay of four years, after which students would need to apply for extensions to continue their studies if their programmes extend beyond the authorised period.
Separately, the administration intends to propose changes to Optional Practical Training, STEM OPT extensions and Curricular Practical Training, potentially limiting opportunities for international graduates to work in the US after completing their studies. The proposal is currently expected in February 2027.
Given the size of the Indian student community in the US, any restrictions on post-study work opportunities or visa validity could have a significant impact.
H-4 Visa Holders Could Also Be Affected
Another proposal likely to affect Indian families relates to Employment Authorisation Documents (EAD).
The administration is expected to finalise a rule ending the automatic extension of EADs that currently benefits certain foreign nationals who file timely renewal applications.
The change is especially important for H-4 visa holders — spouses of H-1B workers, largely women — who rely on these permits to work, be self-employed and obtain essentials such as driving licences.
According to a Times of India report, as many as one lakh Indian spouses have benefited from H-4 work authorisation.
Under the proposed framework, individuals would no longer be able to continue working once their existing permit expires while waiting for renewal approval. Since H-4 EAD renewal applications can only be filed 180 days before expiry, but processing often takes longer, applicants could face unavoidable employment gaps.
More Changes On The Horizon
The regulatory agenda also outlines several other proposals that could reshape the broader immigration system.
These include:
- Stricter public charge rules, potentially requiring tougher financial scrutiny of Green Card applicants to assess whether they may become dependent on government benefits.
- Expanded biometric collection, with broader collection and continued vetting of biometric information from immigration applicants even after entry into the United States. Sponsors and authorised company representatives may also be required to provide biometrics.
- Higher immigration fees, including increases in baseline application fees across several visa categories and revised fees for the EB-5 investor visa programme.
- Changes to the naturalisation process, including possible revisions to educational standards for citizenship applicants and the way naturalisation tests are administered, including the possibility of third-party testing.
In addition, the administration is expected to expand the 9-11 Response and Biometric Entry-Exit Fee for certain large employers that rely heavily on H-1B and L-1 workers.
If finalised, qualifying companies would have to pay the additional fee not only for new visa petitions and change-of-employer applications but also when seeking extensions for existing employees, increasing costs for businesses that depend on foreign professionals.
What Happens Next?
The regulatory agenda is not law. It is essentially a roadmap of the administration’s policy priorities and the rules it intends to pursue.
Most proposals will first be published as draft regulations before entering a public consultation period, typically lasting 30 to 60 days. Agencies will then review feedback before deciding whether to issue final rules, a process that often takes several months. Publication timelines can also change.
For now, the proposals do not immediately change US immigration rules.
