Post by : Rameen Ariff

The United States government is moving to introduce stricter rules for the H-1B visa programme, following a recent $100,000 mandatory fee hike. The Trump administration plans to overhaul the H-1B visa system to better protect US workers’ wages and working conditions, potentially affecting thousands of Indian students and professionals who hope to work in the US.

The Department of Homeland Security (DHS) has proposed regulatory changes under the title “Reforming the H-1B Nonimmigrant Visa Classification Program.” The proposal includes tighter rules on eligibility for cap exemptions, stricter scrutiny for employers that have violated programme requirements, and increased oversight on third-party placements.

It is not yet clear whether these changes will narrow the types of employers and positions that qualify for annual cap exemptions. Currently, universities, nonprofit research organisations, and healthcare institutions enjoy certain exemptions. Any change could significantly impact these sectors.

“These changes are intended to improve the integrity of the H-1B nonimmigrant program and better protect US workers’ wages and working conditions,” the DHS proposal stated.

Wage-Based H-1B Selection

Earlier reports suggest that the Trump administration may replace the traditional H-1B lottery system with a wage-based selection process. This means candidates with higher salaries could receive priority for H-1B visas, marking a major shift from the existing lottery system. The DHS is expected to publish the final rule potentially by December 2025.

Why H-1B Visa is Important

The H-1B visa is a temporary visa for high-skilled foreign professionals, including IT experts, engineers, and healthcare specialists. It allows Indian and other foreign nationals to work in the US for a limited period, with the potential to transition to permanent residency later.

The US government caps H-1B visas at 65,000 per year, with an additional 20,000 visas reserved for applicants holding a master’s degree or higher from a US university. Certain employers like universities and nonprofit organisations are exempt from this cap. According to Pew Research Centre, nearly 75% of H-1B visa approvals in 2023 were for Indian nationals, and about 60% of approved visas since 2012 have been for IT and computer-related jobs.

Salary and Employment Regulations

H-1B visa holders are often paid salaries equal to or higher than US employees with similar skills and experience. US law requires employers to pay the higher of the actual or prevailing wage for professionals in comparable roles. Government fees for H-1B visas often exceed $6,000, in addition to standard employer payments.

Impact on Indian Professionals

Any tightening of H-1B visa rules or reduction in exemptions could affect thousands of Indians planning to work in the US. Professionals in IT, healthcare, and research sectors may face stricter eligibility criteria, higher fees, and a competitive wage-based selection process.

The proposed H-1B reforms mark the Trump administration’s latest effort to control immigration and prioritise American workers, while continuing to support businesses needing high-skilled foreign talent.

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