Trump's new H-1B visa overhaul targets Indian tech talent: Here’s what you need to know

The Trump administration is preparing a significant overhaul of the H-1B visa programme, proposing new rules that aim to tighten eligibility, revise exemption criteria, and reform how H-1B visas are allocated.

These changes are expected to impact Indian professionals the most, given their dominant share in the programme.As per the US Department of Homeland Security’s (DHS) regulatory agenda, a new proposal is scheduled for December 2025. This proposal is set to revisit cap exemption criteria, impose stricter oversight on third-party placements, and introduce new compliance measures targeting employers who violate programme requirements.

The changes are expected to be codified in regulations, moving beyond policy memoranda that were previously subject to legal challenges.Revised exemptions and stricter complianceCurrently, 85,000 H-1B visas are issued annually under the congressionally mandated quota. Exemptions apply to higher education institutions, non-profit research organisations, and government research entities. Certain categories of workers, such as those extending their stay or switching employers, are also exempt from the cap.

The upcoming proposal is expected to narrow these exemptions.During President Trump’s previous term, the US Citizenship and Immigration Services (USCIS) had introduced stricter requirements for employers placing H-1B workers at third-party worksites. Employers were required to submit detailed contracts and itineraries to prove that specialty occupation work would exist for the full duration of the visa.

This led to increased evidence requests, shorter approval durations, and a higher rate of denials.

These requirements were later struck down in court, leading to the withdrawal of the policy memo.An immigration consultant working with a technology firm told The Times of India’s Lubna Kably, “It looks like the Trump administration is now seeking to strict third-party placement rules into formal regulation, rather than relying on policy memos that can be challenged in court.”Wage-based lottery to replace random selectionThe DHS is also expected to introduce a rule changing how H-1B lottery numbers are allocated. The proposed system would prioritise applicants offered higher wages, based on data from the Department of Labor’s Occupational Employment and Wage Statistics. This would replace the current random selection system.The administration has confirmed that the beneficiary-centric registration system will continue.

Under this system, each applicant will be entered into the lottery only once, regardless of how many employers submit petitions on their behalf. The order of selection between the 65,000 regular quota and the 20,000 advanced-degree slots will remain unchanged.Indians most impacted by proposed changesAccording to The Times of India, Indian nationals are the largest beneficiaries of the H-1B programme. For the fiscal year ending September 2023, they received 68,825 initial employment visas, accounting for 58% of the total issued. In addition, Indian nationals received 2.10 lakh visa extensions, representing 79% of all extensions. Chinese nationals followed, with 16,094 initial approvals and 29,250 extensions.