H1-B, student visas: US proposes stricter rules from August

The United States is preparing a new set of stricter immigration rules that will affect foreign professionals, including Indians, students, and employers.

The proposed changes to the H-1B programme, L-1 visas and student visas are part of the 2026 Unified Regulatory Agenda and Regulatory Plan released by the US Departments of Homeland Security (DHS), Labor (DOL) and State (DOS).

'America, Americans first'

As per the regulatory plan, the Trump administration is “continuing to put America—and Americans—first.”

Also read: US initiates H-1B, PERM visa fraud probe; Cognizant among firms under scrutiny

“Taken together, the deregulatory actions in this Regulatory Plan will achieve extraordinary cost savings for Americans that will underscore the President’s unmatched deregulatory record. Equally important, the Trump Administration’s Regulatory Plan will promote liberty, unleash American energy dominance, preserve products consumers love, and eradicate the ideology of Diversity, Equity, and Inclusion (DEI),” the regulatory plan said.

“Under President Trump’s leadership, the Department will continue to place American workers first by focusing on policies that protect American jobs, reduce unnecessary burdens on employers and workers alike, and ensure workers share in the benefits of a strong economy,” it added.

One of the most important proposals set to be implemented from August is the change to the H-1B visa programme, which sees a large number of Indians. The Department of Homeland Security (DHS) is planning to tighten certain parts of H-1B programme. As of now, the annual cap for H-1B visas is 85,000.

Additional requirements

According to reports, the Trump administration is set to introduce additional requirements for employers placing H-1B workers at third-party client sites and subject employers with a history of H-1B violations to greater scrutiny.

Indian IT and consulting companies use the third-party placement model and under the proposed changes, the employers might have to provide stronger proof of employer-employee relationship with the worker. Also, they might have to show that the employee with perform specialised work at client place and submit additional documents to support their applications.

Also, the US administration is likely to impose a fee on big companies that are hiring workers under H-1B and L-1 visas.

Under a final rule expected this month, companies with more than 50 employees in the U.S., where over half the workforce holds H-1B or L-1 visas, would be required to pay the additional 9-11 Response and Biometric Entry-Exit Fee not only for new H-1B and L-1 petitions and change-of-employer filings, but also when seeking extensions of stay for existing employees, a report in The Times of India said.

At present, these employers pay an additional $4,000 for eligible H-1B petitions and $4,500 for eligible L-1 petitions only when sponsoring a worker for an initial period of stay or when the employee changes employers, it added.