Major changes soon to US H-1B visa: Why Indians will be most affected? Explained

New Delhi: The Trump administration is planning sweeping changes to the US immigration system, including stricter H-1B visa rules and higher wage requirements. If implemented, the proposals are expected to have the biggest impact on Indian professionals and students. 

Although the proposals are not yet law, they are expected to move through the federal rulemaking process over the coming months. If implemented, the changes could reshape how skilled professionals and students enter, work and settle in the United States.

For Indians, who make up the largest share of H-1B visa holders, employment-based green card applicants and international students in the US, the impact could be more significant than for any other nationality.

Also Read: US court scraps Trump’s $100,000 fee on H-1B visas; How this will benefit Indians?

Why Indians Could Be the Worst Affected?

India is at the centre of the US skilled immigration system. Indian professionals dominate the H-1B visa programme, particularly in the technology, engineering, finance and consulting sectors. Indians also account for the largest backlog in employment-based green cards and recently became the biggest group of international students studying at US universities.

As a result, changes affecting work visas, student visas or permanent residency are likely to have a disproportionate impact on Indian workers, students and their families.

Stricter H-1B Rules on the Horizon

One of the biggest proposed changes targets the H-1B visa programme, which allows US companies to hire highly skilled foreign professionals.

The DHS plans to introduce stricter eligibility rules for certain H-1B cap exemptions while increasing oversight of employers sponsoring foreign workers. The proposals are expected to place greater scrutiny on companies with previous compliance violations and require stronger evidence that sponsored employees are performing specialised roles as approved.

Indian IT Firms Could Face Greater Scrutiny

The proposed rules also focus on one of the most common employment models used by Indian IT services and consulting firms- placing H-1B employees at third-party client locations.

Under the new framework, employers may have to prove that a genuine employer-employee relationship continues even when workers are deployed at client sites. Companies could also be required to maintain detailed records of work assignments, client contracts and day-to-day responsibilities.

For Indian outsourcing firms that rely heavily on this model, the additional compliance burden could increase costs and make visa approvals more challenging.

Higher Costs for Employers Sponsoring Indian Workers

The Trump administration is also planning to expand additional visa surcharges for companies that employ large numbers of H-1B and L-1 workers.

Currently, certain employers pay an extra fee when filing new H-1B petitions. The proposed rule would extend this surcharge to visa extension applications as well, increasing costs for companies that retain foreign employees for several years.

Since Indian professionals account for the majority of H-1B renewals, the move could discourage employers from extending work visas or hiring additional foreign talent.

Also Read: US Lawmaker introduces bill to overhaul H-1B Visa programme, hit Indian tech workers hard

Salary Rules Could Become Tougher

Another major proposal comes from the US Department of Labor, which plans to revise prevailing wage requirements for H-1B visas, H-1B1 visas, E-3 visas and employment-based green cards processed through the PERM system.

The proposal would raise the minimum salary threshold for entry-level positions by increasing the wage benchmark from the 17th percentile to the 34th percentile for each occupation and region.

If approved, employers would have to offer significantly higher salaries before sponsoring foreign workers.

Fewer Opportunities for Fresh Graduates

Higher salary requirements could particularly affect young professionals and recent graduates seeking their first jobs in the United States.

Many employers may reduce entry-level hiring or become more selective when sponsoring overseas candidates due to the increased financial commitment. Indian graduates, who form one of the largest groups entering the US job market through STEM programmes, could face tougher competition for sponsorship.