The U.S. administration has released a new regulatory agenda that signals a major overhaul of the country’s immigration system. These are proposals, not laws yet. Before taking effect, they must go through formal rulemaking, including publication of proposed rules, public comment, and final approval. Some may also face legal challenges.

Here’s a complete overview of what is proposed and how it could affect Indian professionals, students, employers, and H-4 visa holders.

H-1B Visa Rules Could Become Much Stricter 

The Department of Homeland Security (DHS) plans to publish a proposed H-1B reform rule around August 2026. 

Proposed Changes 

Stricter H-1B Cap Exemptions 

Currently, certain organizations are exempt from the annual H-1B cap, including:

• Universities
• Non-profit research institutions
• Government research organizations

The administration proposes narrowing these exemptions.

Greater Oversight of Third-Party Placements 

This is especially significant for Indian IT companies like:

• Tata Consultancy Services (TCS)
• Infosys
• Wipro
• HCLTech
• Tech Mahindra

Many employees work at client locations in the US.

Employers may have to prove:

• A genuine employer-employee relationship exists.
• The employee will perform specialty occupation work.
• The assignment is legitimate.
• Additional contracts and work orders support the petition.

This could make approvals more difficult.

More Scrutiny for Employers with Past Violations 

Companies with previous H-1B compliance issues may face:

• More Requests for Evidence (RFEs)
• Additional audits
• Slower processing
• Higher denial risk

Higher Supplemental Fees 

A special fee currently applies only to certain new H-1B filings. The proposal would expand it to include:

• H-1B extensions
• Continuing employment petitions

This mainly affects employers with:

• More than 50 US employees
• More than 50% of workers on H-1B or L-1 visas

Indian outsourcing firms would likely face significantly higher costs.

Higher Minimum Salary Requirements 

The Department of Labor proposes changing prevailing wage calculations. 

Current Entry-Level Wage

17th percentile

Proposed Entry-Level Wage

34th percentile

Higher wage levels would also increase.

Employers sponsoring foreign workers would need to pay substantially higher salaries. This could lead to:

• Fewer sponsorships
• More selective hiring
• Reduced opportunities for junior candidates

The proposal also aims to reduce incentives to hire lower-paid foreign workers.

PERM Green Card Process Could Change 

PERM is the first major step toward many employment-based Green Cards. The Labor Department proposes:  

• Tougher recruitment requirements
• Stronger protections for US workers
• New layoff-related rules
• Enhanced anti-discrimination provisions

Potential effects include:

• Longer processing
• More employer documentation
• Increased compliance costs
• Slower Green Card sponsorships

Student Visa Rules Could Change Dramatically 

India sent approximately 360,000 students to the US during the 2024–25 academic year, making it the largest source of international students. 

End of “Duration of Status”

Currently, F-1 students may remain in the US as long as they continue to meet the requirements of their academic program. The proposal would replace this with:

• A fixed visa validity period.

When that period ends, students would need to apply for an extension even if they are still enrolled.

OPT and STEM OPT May Be Tightened 

Another proposal, expected in February 2027, would review:

• Optional Practical Training (OPT)
• 24-month STEM OPT extension
• Curricular Practical Training (CPT)

Possible outcomes include:

• Stricter eligibility
• Shorter work periods
• Additional employer requirements
• Increased scrutiny

Since many Indian graduates rely on OPT before moving to H-1B status, these changes could significantly affect career planning.

Also Read: US Tourist Visa Wait Time in India Reaches 9.5 Months

H-4 EAD Work Authorization 

One of the biggest concerns is Employment Authorization Documents (EADs). Currently, many H-4 spouses can continue working while renewal applications are pending through automatic extensions. The administration plans to end those automatic extensions.

Potential Impact

If USCIS takes several months to process an EAD renewal:

• The applicant may temporarily lose work authorization.
• They may need to stop working until the new EAD is approved.

This could affect thousands of Indian H-4 spouses waiting for employment-based Green Cards.

Also Read: US Plans Higher H-1B Visa Minimum Wage

Increased Employer Compliance 

Employers could face:

• More paperwork
• Additional documentation
• More site visits
• More audits
• Increased filing costs
• Greater legal risks

Companies may become more cautious about sponsoring foreign workers because of the added expense and compliance burden.

Also Read: U.S. Immigration Updates for July 2026

Slower Processing and More Vetting 

Recent immigration policy changes have already led to:

• Enhanced background checks
• More Requests for Evidence
• Longer processing times
• Greater scrutiny of applicants’ social media and personal information in some cases
• Hiring delays for employers

If the proposed US immigration rules are finalized:

• H-1B approvals could become more difficult.
• Employers may sponsor fewer foreign workers because of higher wage and compliance costs.
• Indian IT consulting firms could face increased scrutiny.
• Green Card sponsorships may become slower and more expensive.
• International students may have to renew status more frequently.
• OPT and STEM OPT opportunities could become more restrictive.
• H-4 spouses may experience employment interruptions if EAD renewals are delayed.
• Overall, foreign professionals and students could face greater uncertainty while navigating the U.S. immigration system.

Why Indians Could Be the Most Affected 

India has the largest share of:

• H-1B visa holders
• Employment-based Green Card applicants
• H-4 dependent visa holders with work authorization
• International students in the US

Because of this, any tightening of employment or student visa rules is expected to have a disproportionate impact on Indians.

Important: None of these proposals are currently in force. They must complete the federal rulemaking process, including publication, public comment, and final approval, and some could be modified or blocked through litigation before taking effect. 

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