Trump Administration's New H-1B Visa Restrictions: Beyond the $100,000 Fee Hike

The Trump administration is preparing to implement further restrictions on the H-1B visa program beyond the recently announced $100,000 mandatory fee, targeting both the application process and eligibility requirements.

A regulatory change proposal from the Department of Homeland Security has been formally listed in the Federal Register under "Reforming the H-1B Nonimmigrant Visa Classification Program." This initiative includes revising cap exemption eligibility, increasing scrutiny for employers with previous program violations, and enhancing oversight of third-party placements.

While the specifics remain unclear, potential modifications to exemption caps could significantly impact nonprofit research organizations, universities, and healthcare institutions that currently enjoy exemptions from annual visa limits, according to Newsweek.

The proposal states these changes aim to "improve the integrity of the H-1B nonimmigrant program and better protect US workers' wages and working conditions." These adjustments are expected to have far-reaching consequences for thousands of Indian students and professionals seeking employment opportunities in the United States.

According to the regulatory notice, the rule could be published as soon as December 2025.

Previous reports have indicated that the Trump administration is considering replacing the current H-1B lottery system with a wage-based selection process.

The H-1B visa category holds significant importance for highly skilled foreign nationals, particularly Indians, as it represents the primary practical pathway for long-term employment in America before potentially obtaining permanent residence status. Established by the 1990 Immigration Act, these visas enable American companies to recruit individuals with technical expertise that is difficult to source domestically.

Although H-1B visas are temporary and not designed for permanent immigration, some holders eventually transition to permanent status through other immigration pathways. The U.S. government maintains an annual cap of 65,000 H-1B visas, with an additional 20,000 reserved for individuals holding advanced degrees from American universities. These visas are currently distributed through a lottery system, with certain employers like universities and nonprofits exempt from these limitations.

According to the Pew Research Center, nearly three-quarters of successful applicants in 2023 were from India. Approximately 60 percent of H-1B visas approved since 2012 have been allocated to computer-related occupations, though hospitals, banks, universities, and various other employers also utilize this visa category.

Research demonstrates that H-1B visa holders frequently earn salaries equal to or higher than their American counterparts with comparable education and experience. U.S. law mandates that employers must pay H-1B workers the higher of either the actual wage or the prevailing wage paid to American professionals with similar qualifications, in addition to government fees that often exceed $6,000.