'H-1B system works only when...': Vance flags visa fraud concerns amid rules overhaul, layoffs

The debate around the H-1B visa programme has sharpened just as thousands of foreign workers face job losses and tighter rules in the United States.

US Vice President JD Vance has flagged concerns over misuse of the H-1B system, while acknowledging the role immigrants have played in strengthening the country’s economy. His remarks come at a time when layoffs across the tech sector and a structural overhaul of the visa process are creating fresh uncertainty for workers, especially from India.

“... On one hand, there is a lot of fraud in the H1-B system and on the other hand, there are people who came in and enriched the country, like my in-laws... One of the obligations of such citizens is that they must think about the country and not the country or group they came from... The system works only when everyone thinks of themselves as Americans...” Vance said.

His comments align with a broader push by the Donald Trump administration to tighten immigration controls. The government has described abuse of the H-1B programme as a national security concern and has already introduced stricter measures, including a $100,000 fee on certain new H-1B visas, a move that triggered concern among Indian professionals, who form a large share of visa holders.

Layoffs add urgency for H-1B workers

The policy tightening comes alongside fresh job cuts. US tech giant Oracle recently laid off thousands of employees on March 31, 2026, including several H-1B visa holders. Similar workforce reductions at companies such as Amazon and Microsoft point to a wider slowdown in hiring across the sector.

For H-1B employees affected by layoffs, the consequences are immediate. Losing a job can put their legal status at risk, forcing them to quickly secure new employment or leave the country within a limited timeframe.

April 1 reset changes how visas are allocated

At the same time, the start of the new H-1B filing season on April 1 marks a major shift in how visas are processed.

The system is moving away from a largely random lottery to a wage-driven framework. This means applications will now be assessed more closely based on salary levels, job roles, and the accuracy of employer filings.

Authorities are tightening scrutiny after years of criticism over misuse and unpredictability in the selection process. The revised approach is designed to prioritise higher-quality jobs and ensure stronger employer accountability.

From April 1, all applications must be submitted using the updated Form I-129, with older versions set to be rejected outright, a move that signals stricter compliance requirements.

A system under pressure

The convergence of political scrutiny, corporate layoffs, and regulatory overhaul has put the H-1B programme at a turning point.

For Indian professionals, who rely heavily on the visa route to work in the US, the combination of higher costs, stricter rules, and job market uncertainty is reshaping the landscape, even as policymakers debate how to balance economic needs with national priorities.