The Trump administration is preparing a new set of immigration regulations that could make it more challenging for foreign professionals, students and employers to navigate the US immigration system. The proposed measures target some of the most widely used pathways for Indians seeking to study and work in the United States. As one of the largest immigrant communities in the country, Indians could be particularly affected by changes to the H-1B visa programme, L-1 visas and student visa rules.
The proposals are outlined in the latest Unified Regulatory Agendas released by the US Departments of Homeland Security (DHS), Labor (DOL) and State (DOS). Although none of the measures has been implemented yet, they provide the clearest indication of the administration's policy direction. If enacted, the changes could introduce stricter eligibility requirements, additional documentation, greater employer scrutiny and higher compliance costs for companies hiring foreign workers.
India is expected to be among the countries most impacted, as Indian nationals account for a significant share of H-1B visa holders, employment-based Green Card applicants and international students in the United States.
H-1B rules may become stricter from August
One of the most significant proposals relates to the H-1B visa programme, which enables US employers to hire foreign professionals in specialised occupations. Each year, 85,000 new H-1B visas are available under the annual cap.
The DHS is expected to publish a proposed rule in August that would tighten several aspects of the programme. The proposal may narrow the existing cap exemptions available to universities and certain research institutions. It would also impose stricter requirements on employers who deploy H-1B workers at third-party client locations and increase scrutiny of companies with a history of violating programme rules.
The third-party placement model is widely used by Indian IT and consulting firms. Under the proposed framework, employers may be required to provide stronger evidence of a genuine employer-employee relationship. They could also have to demonstrate that the employee will perform specialised work at the client site and submit additional supporting documentation with visa petitions.
Companies that have previously violated H-1B regulations may face enhanced scrutiny when submitting future applications.
The DHS also plans to expand an existing supplemental fee that currently applies to certain large employers filing initial H-1B petitions or change-of-employer applications. Under the proposal, the fee would also apply to extension requests. The change would affect employers with more than 50 employees in the United States if over half of their workforce consists of H-1B or L-1 visa holders, increasing costs for outsourcing-focused companies.
Green Card sponsorship could become more expensive
The Department of Labor is also considering changes that may raise the cost of sponsoring foreign workers for H-1B visas and employment-based Green Cards.
It plans to revise prevailing wage requirements used in H-1B and PERM labour certification cases. Under the proposal, the entry-level wage threshold would increase from the 17th percentile to the 34th percentile, while higher wage levels would also be adjusted upwards. This would require employers to offer higher salaries when sponsoring foreign workers.
The department is also expected to introduce revisions to the PERM labour certification process, a key requirement for many employment-based Green Card applications. Proposed changes include updated recruitment standards, revised rules concerning layoffs of US workers and stronger anti-discrimination provisions.
Amid lengthy Green Card backlogs and ongoing uncertainty surrounding US immigration policies, many skilled professionals are already exploring alternatives such as the United Kingdom, where pathways to permanent residency are viewed as more predictable.
Student visas and OPT also under review
International students are also likely to be affected by the proposed immigration changes.
India sent approximately 3.6 lakh students to the United States during the 2024-25 academic year, making it the largest source of international students.
The DHS intends to replace the existing "duration of status" system for students and exchange visitors. Under the current rules, students are generally permitted to remain in the US for as long as they continue to meet the requirements of their academic programme.
The proposed rule would instead grant students fixed periods of authorised stay. Once that period expires, they would be required to apply for an extension to continue studying or remain in the country.
Another proposal, expected in February 2027, could tighten regulations governing Optional Practical Training (OPT). The review covers both the two-year STEM OPT extension and Curricular Practical Training (CPT), which allow eligible international students to gain work experience in the United States.
H-4 spouses may face employment interruptions
The administration is also planning changes to Employment Authorisation Documents (EADs), which allow certain foreign nationals to work legally in the United States.
A final rule expected this month would end the automatic extensions of EADs that were introduced under an interim rule issued in October 2025.
The change could particularly affect H-4 visa holders, many of whom are spouses of H-1B workers. A large proportion of H-4 visa holders are Indians awaiting employment-based Green Cards. If their EAD renewal applications are delayed, they could temporarily lose legal work authorisation even if they applied before their existing permits expired.
Although applicants are permitted to submit renewal requests up to 180 days before expiry, processing delays may still result in temporary employment gaps.
Immigration attorney Mitch Wexler of Fragomen Immigration Firm said the latest regulatory agendas serve as a "roadmap" outlining the administration's immigration priorities.
For now, none of the proposed measures has become law. They must still go through the formal rulemaking process, including publication of draft regulations, a public consultation period and final approval. The proposals could also face legal challenges before they are implemented.
Nevertheless, the agenda signals a shift towards stricter immigration policies. If the proposals are eventually adopted, they are likely to increase compliance obligations for employers, raise hiring costs and create greater uncertainty for foreign professionals and students, particularly those from India.
