Stricter H-1B rules from August, OPT changes in 2027: What Trump's new visa plans mean for Indians

The Trump administration is drawing up a set of immigration rule changes that, taken together, represent the most comprehensive tightening of the US immigration system in years. The proposals, laid out in the latest Unified Regulatory Agendas released by the Departments of Homeland Security, Labor, and State, span H-1B visas, student permits, Optional Practical Training, employment-based Green Cards, and work authorisation for H-4 spouses.

None has yet taken effect, but each signals where the administration intends to go. For Indians, who account for the largest share of H-1B holders, Green Card applicants, and international students in the US, the cumulative impact could be significant.

H-1B rules expected to tighten from August

A proposed rule expected to be published by DHS in August would narrow several parts of the H-1B programme, which currently issues 85,000 new visas annually under the cap.

The changes would tighten cap exemptions currently available to universities and certain research organisations, introduce stricter requirements for employers placing H-1B workers at third-party client sites, a model widely used by Indian IT and consulting firms, and increase scrutiny of employers with a history of programme violations.

Under the proposed rules, employers using third-party placements would need to demonstrate a genuine employer-employee relationship, provide evidence that the worker will perform specialised work at the client site, and submit more detailed supporting documentation. Companies with prior H-1B violations could face enhanced review of all future petitions.

The DHS also plans to extend an existing supplemental fee that currently applies to initial H-1B petitions and employer changes. Under the new proposal, it would also cover extension applications. The fee applies to employers with more than 50 employees in the US if more than half their workforce is on H-1B or L-1 visas, a provision that disproportionately affects outsourcing-focused firms.

Green Card sponsorship set to become more expensive

The Department of Labor is planning revisions to the prevailing wage levels used for H-1B and PERM labour certification cases. The proposed change would raise the entry-level wage benchmark from the 17th percentile to the 34th percentile, with higher wage levels also increasing. The practical effect would be higher minimum salary thresholds for employers sponsoring foreign workers, making Green Card pathways more expensive to pursue.

Additional changes to the PERM process itself are also planned, covering recruitment standards, rules around layoffs of American workers, and stronger anti-discrimination provisions.

International students face new restrictions

India sent approximately 3.6 lakh students to the US in the 2024-25 academic year, making it the single largest source of international students. Those students now face potential changes to the conditions of their stay.

The DHS plans to end the current “duration of status” system, under which students can remain in the country as long as they continue to meet their programme’s requirements. Under the proposed replacement, students would receive fixed periods of stay and would need to apply for extensions to continue studying or remain after that period expires.

A separate proposal expected in February 2027 could tighten rules around Optional Practical Training, including both the two-year STEM OPT extension and Curricular Practical Training, two of the most commonly used pathways through which Indian students gain US work experience after completing their degrees.

H-4 spouses could face work gaps

Perhaps the most immediately consequential change for the Indian community concerns H-4 visa holders, a category that includes a large number of spouses of H-1B workers, many of them Indians on employment-based Green Card waiting lists.

A final rule expected this month would end automatic extensions of Employment Authorisation Documents that had been available under an interim rule issued in October 2025. If an EAD renewal application is delayed in processing, affected individuals could temporarily lose legal work authorisation even if they applied on time. While renewal applications can be filed up to 180 days before expiry, processing timelines do not guarantee seamless continuity.