The Trump administration is preparing a sweeping set of immigration reforms that could significantly tighten the US immigration system. The proposed changes, outlined in the latest Unified Regulatory Agendas released by the Departments of Homeland Security (DHS), Labor, and State, target H-1B visas, international student regulations, Optional Practical Training (OPT), employment-based Green Cards, and work authorization for H-4 visa holders.
While none of the proposals has come into effect yet, they indicate the administration’s direction on immigration policy. The changes are expected to have a major impact on Indian nationals, who form the largest group of H-1B visa holders, employment-based Green Card applicants, and international students in the United States.
One of the most significant proposals, expected to be introduced by the DHS in August, aims to tighten H-1B visa regulations. The new rules would restrict existing cap exemptions for universities and research institutions, impose stricter conditions on employers placing H-1B workers at third-party client locations, and increase scrutiny of companies with a history of violating H-1B programme rules.
Employers would be required to prove a genuine employer-employee relationship, demonstrate that workers are performing specialised roles at client sites, and submit additional documentation to support visa petitions. Companies with previous H-1B violations could also face enhanced reviews of future applications.
The administration also plans to expand an existing supplemental fee on H-1B applications. Currently applicable only to new petitions and employer transfers, the fee would also be imposed on extension requests. The move is expected to affect large outsourcing and IT firms that employ a significant number of H-1B and L-1 visa holders.
The Department of Labor is also preparing changes to prevailing wage requirements for H-1B and PERM labour certification cases. The proposal would increase the minimum wage benchmark for entry-level positions from the 17th percentile to the 34th percentile, raising salary requirements for employers sponsoring foreign workers. This could make employment-based Green Card sponsorship substantially more expensive.
Further revisions to the PERM labour certification process are also under consideration, including stricter recruitment requirements, tighter layoff regulations involving US workers, and stronger anti-discrimination provisions.
International students could also face tougher rules. Indian students, who accounted for nearly 3.6 lakh enrolments in the US during the 2024-25 academic year, may no longer benefit from the current “duration of status” system. Instead, students would receive fixed periods of stay and would have to apply for extensions if they wish to continue their studies beyond the approved duration.
Another proposal expected in February 2027 seeks to tighten regulations governing Optional Practical Training (OPT), including the two-year STEM OPT extension and Curricular Practical Training (CPT), both of which are widely used by Indian students to gain work experience after graduation.
The proposed changes also affect H-4 visa holders, many of whom are spouses of Indian H-1B workers awaiting employment-based Green Cards. A final rule expected this month would eliminate the automatic extension of Employment Authorization Documents (EADs) that was introduced under an interim rule in October 2025.
If EAD renewal applications are delayed, affected H-4 visa holders could temporarily lose their legal work authorization, even if they submitted renewal requests before their permits expired. Although renewal applications can be filed up to 180 days in advance, processing delays may still result in employment interruptions.
If implemented, these measures would mark one of the most comprehensive overhauls of the US immigration system in recent years, with far-reaching consequences for Indian professionals, students, and families living and working in the United States.
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