Trump administration eyes tighter H-1B, green card and student visa rules

The Trump administration is preparing a fresh round of immigration rule changes that could reshape the H-1B visa program, employment-based green cards, visa tenure of international students and the optional training program (OPT) available to them. A soon to be issued final rule will also end automatic extension of employment authorisation documents (EADs). Indian professionals and students are likely to be among those most affected if the proposals are implemented.The proposals are part of the latest regulatory agendas released by the US Departments of Homeland Security (DHS), Department of Labor (DOL) and Department of State (DOS), which outline the administration’s immigration priorities over the coming months. While the timelines are tentative and the proposals must go through the formal rulemaking process, they provide the clearest indication yet of the administration’s intended direction.

H-1B program

One of the most closely watched proposals relates to the H-1B program, which is expected to be published in August. DHS plans to tighten eligibility for certain exemptions from the annual H-1B cap of 85,000 (at present universities and eligible research outfits can hire H-1B employees at any time and are not subject to the annual lottery) , 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.A common staffing model used by Indian IT and consulting companies is placing H-1B workers at third-party client sites. While the administration has not yet released the draft text, it may require employers to demonstrate a genuine employer-employee relationship, establish that the worker will perform specialty occupation duties at the client location, and maintain greater documentation of assignments.Another key element is enhanced scrutiny of employers found to have violated H-1B program requirements. Such employers could face more rigorous reviews when filing future H-1B applications, signalling the administration’s intention to step up compliance and enforcement.Timeline: Proposed rule is likely to be published in Aug.The administration is also expected to expand a fee that applies to certain large employers hiring H-1B and L-1 workers. 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.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. Extending the fee to renewal petitions would increase costs for employers that rely heavily on H-1B and L-1 workers, including several large IT outsourcing companies. The proposal was initially scheduled for publication in April 2025, later dropped from the regulatory agenda, and has now re-emerged as a near-term priority.Timeline: The final rule is likely to be published in July.DOL also intends to finalise a rule that will hike the prevailing wage levels under the four-tiered structure for H-1B and employment green card cases. The draft was issued in March and the public comment period ended in May. If implemented as proposed, the wage regulation would increase the threshold for entry-level wages from the 17th percentile to the 34th percentile for the occupation and geographic area. As a result, employers would see higher sponsorship costs for both temporary work visa filings and most permanent residence cases.TOI had analysed the proposal and pointed out that it could be subject to legal challenges.Also read: DOL’s proposed rule to significantly hike H-1B wages is likely illegalTimeline: The regulatory agenda does not provide an anticipated date for release of the final rule.

Employment linked green cards

DOL is also expected to propose a major overhaul of the PERM labour certification process this month. Before an employer can file a green card application, it must obtain PERM labour certification from DOL. The department said the existing recruitment framework, introduced in 2004, no longer reflects today’s hiring practices and technological advances in recruitment. The proposal would update the minimum standards for testing the US labour market, tighten rules governing layoffs of US workers before employers can sponsor foreign workers, and strengthen compliance with non-discrimination requirements during recruitment and hiring.Timeline: The proposed rule is likely to be published in July.

International students

India is the leading country of origin of international students in the US. According to the latest Open Doors Report, during the academic year 2024-25, there were 3.6 lakh Indian students in the US constituting nearly 31% of the total number of 11 lakh international students. While the numbers of new students from India is falling, the cohort of Indian students will continue to be significant and the proposed regulations will have far reaching impact.The coming weeks will see DHS publish a final regulation that will end the longstanding practice of admitting foreign students and exchange visitors to the US for the duration of their program (known as duration of status). Instead these visas will be of a fixed tenure – the draft had proposed a maximum of four years; after which they be required to file an extension with the immigration authorities in order to remain in the US. TOI has extensively analysed the draft proposals.Also read: International students in line of fire again – Trump admin proposes limiting visa tenure to a fixed periodTimeline: The final rule is likely to be published in July.A proposed regulation slated for Feb 2027 is expected to seek amendments to the optional practical training (OPT) programs. Though the regulatory agenda provides few details, proposals could include restrictions on the two year OPT extension available to STEM students and and curricular practical training (CPT). Originally, the proposal was set to be published in September 2025.Timeline: The proposed rule is likely to be published in Feb 2027.

Ending automatic extension of EADs

A regulation expected this month will finalize an interim regulation in place since Oct 2025 that eliminated the maximum 540-day automatic extension of employment authorization documents (EADs) for certain foreign nationals who timely filed EAD renewal applications on or after Oct 30, 2025.TOI had analysed the interim final rule and pointed out that it would adversely impact H-4 visa holders (spouses of H-1B visa holders who are on track for a green card). As many as one lakh Indian spouses (largely women) have benefited from the work authorization permit – which in addition to enabling them to work or be self -employed, also enables them to avail of basics such as a driving license.Also read: Donald Trump admin ends automatic work permit extensions, placing nearly one lakh Indian spouses at risk of job disruptionsUnder the new rule, individuals cannot continue working after their current permit expires. They must wait until the US Citizenship and Immigration Services (USCIS) approves and renews the EAD. The hitch: H-4 EAD holders can file renewal applications only up to 180 days before the expiration date, but USCIS typically takes a longer time to process the application. This creates an unavoidable gap and can result in job losses.“The regulatory agenda provides an important roadmap of where the administration intends to focus its efforts over the coming months,” said Mitch Wexler, senior counsel at Fragomen, a global immigration law firm.“While many of these are proposals rather than final rules and the usual rulemaking process takes several months, employers should begin evaluating how potential changes to the H-1B program, employment-based permanent residence process and OPT could affect their workforce planning and compliance obligations,” Wexler said.