The Trump administration is preparing another major overhaul of the H-1B visa program, with the Department of Homeland Security moving forward on a proposal that could tighten scrutiny of employers, change eligibility for cap exemptions and impose greater oversight on workers placed at third-party sites.
The proposed rule is currently under review at the White House Office of Management and Budget. While the full details remain confidential until the proposal is published in the Federal Register, the changes could carry broad implications for Indian professionals, who make up a significant share of H-1B visa holders.
Unlike the proposed $103K H-1B filing fee that has drawn widespread attention, this rule could reshape how parts of the program itself are administered.
Deep Dive
What changes are expected in the H-1B visa program under the new Trump administration proposal?
Why is the proposed $103,265 fee on H-1B petitions significant for employers?
How might the new H-1B visa rules affect Indian professionals in the U.S.?
Also read: Seeking a Green Card? Key FAQs on employment-based categories answered for Indian applicants
What could change under the new H-1B proposal?
According to the Department of Homeland Security's description of the rule in its regulatory agenda, the proposal would revise eligibility for H-1B cap exemptions, subject certain employers to greater scrutiny if they have violated program rules and increase oversight of H-1B workers placed at third-party worksites.
{{/usCountry}}According to the Department of Homeland Security's description of the rule in its regulatory agenda, the proposal would revise eligibility for H-1B cap exemptions, subject certain employers to greater scrutiny if they have violated program rules and increase oversight of H-1B workers placed at third-party worksites.
{{/usCountry}}The exact scope of the changes will not be known until the proposal is formally released.
That uncertainty is significant. Cap-exempt H-1B positions, which are generally not subject to the annual H-1B numerical limit, are used by universities, nonprofit research organizations and certain affiliated employers. Any revision to eligibility rules could affect which employers and jobs qualify for exemption from the annual cap.
The proposal could also bring tougher compliance requirements for employers with a history of H-1B violations and increase federal scrutiny of arrangements in which H-1B employees work at client or third-party locations.
Why this H-1B rule could matter more than the proposed fee
The proposal comes as the H-1B program faces a series of potential regulatory changes.
OMB is separately reviewing a DHS proposal that would impose an additional fee of $103,265 on H-1B cap-subject petitions. DHS has also announced an expansion of a fee affecting certain employers with high percentages of H-1B and L-1 workers, while the Department of Labor has proposed higher minimum wage requirements for H-1B and other employment-based immigration programs.
The new proposal, however, could go beyond the cost of filing an H-1B petition.
Changes involving cap exemptions, employer compliance and third-party placements could affect who qualifies for the program and how companies structure H-1B employment. For Indian professionals and US employers, the impact could therefore extend beyond a single petition cycle.
What happens next?
The proposed rule must first complete review by the Office of Management and Budget. It will then be published in the Federal Register, opening a public comment period of either 30 or 60 days.
Until the text is released, the specific changes remain unknown.
For now, the proposal represents another major development in a year of mounting regulatory pressure on the H-1B program.