Trump set to bring back H-1B crackdown: New rules may block thousands of Indian workers
The administration also aims to formalize stricter rules for third-party placements, reviving Trump-era scrutiny that was previously struck down in court.
- Sep 7, 2025,
- Updated Sep 7, 2025 9:28 AM IST
The Trump administration is reportedly moving to overhaul the H-1B visa program by tightening eligibility, increasing scrutiny of employers, and favoring higher-paid workers, a shift that could dramatically impact Indian professionals.
A new rule, set for proposal by December 2025, will revisit core aspects of the H-1B system. The Department of Homeland Security (DHS) plans to redefine who qualifies for exemptions from the 85,000 annual cap — a move that could limit eligibility for research institutions and workers switching employers.
The administration also aims to formalize stricter rules for third-party placements, reviving Trump-era scrutiny that was previously struck down in court. Employers may soon be required to submit detailed contracts proving continuous specialty work throughout the H-1B term. The rule would also enforce a more aggressive interpretation of the “employer-employee relationship,” raising barriers for consulting and staffing firms.
Experts note that the Trump administration now appears to be formalizing third-party placement rules into regulation, moving away from policy memos that were previously vulnerable to legal challenges.
In parallel, DHS is preparing to shift how H-1B lottery selections are made. A separate rule, expected this August, would prioritize candidates with higher wages using the Department of Labor’s Occupational Employment and Wage Statistics (OEWS). While the current beneficiary-centric system will remain, wage-based selection could disadvantage recent graduates and entry-level workers.
The proposed changes follow a pattern seen during Trump’s first term, when denial rates spiked and H-1B approvals were limited to short durations. Though those policies were later rolled back, the new approach would codify many of them into regulation, making future reversals harder.
Indians remain the largest group affected. In fiscal year 2023, they received 58% of initial H-1B visas and 79% of renewals. Any rule change is likely to hit this group the hardest — particularly newer applicants and tech contractors.
The Trump administration is reportedly moving to overhaul the H-1B visa program by tightening eligibility, increasing scrutiny of employers, and favoring higher-paid workers, a shift that could dramatically impact Indian professionals.
A new rule, set for proposal by December 2025, will revisit core aspects of the H-1B system. The Department of Homeland Security (DHS) plans to redefine who qualifies for exemptions from the 85,000 annual cap — a move that could limit eligibility for research institutions and workers switching employers.
The administration also aims to formalize stricter rules for third-party placements, reviving Trump-era scrutiny that was previously struck down in court. Employers may soon be required to submit detailed contracts proving continuous specialty work throughout the H-1B term. The rule would also enforce a more aggressive interpretation of the “employer-employee relationship,” raising barriers for consulting and staffing firms.
Experts note that the Trump administration now appears to be formalizing third-party placement rules into regulation, moving away from policy memos that were previously vulnerable to legal challenges.
In parallel, DHS is preparing to shift how H-1B lottery selections are made. A separate rule, expected this August, would prioritize candidates with higher wages using the Department of Labor’s Occupational Employment and Wage Statistics (OEWS). While the current beneficiary-centric system will remain, wage-based selection could disadvantage recent graduates and entry-level workers.
The proposed changes follow a pattern seen during Trump’s first term, when denial rates spiked and H-1B approvals were limited to short durations. Though those policies were later rolled back, the new approach would codify many of them into regulation, making future reversals harder.
Indians remain the largest group affected. In fiscal year 2023, they received 58% of initial H-1B visas and 79% of renewals. Any rule change is likely to hit this group the hardest — particularly newer applicants and tech contractors.