H-1B: List of new restrictions proposed by White House after $100,000 visa fee

The Donald Trump administration is pushing for a major overhaul of the H-1B visa program , going beyond the initial shock of the $100,000 fee that is now mandatory for all companies that want to file H-1B petition to hire staff from foreign countries. The proposals, formally listed in the Federal Register under the title of 'Reforming the H-1B Nonimmigrant Visa Classification Program' include several technical aspects which will impact the hiring of Indians.

Definition of ' specialty occupation '

Department of Homeland Security, in its proposed draft, said: “The specialty occupation definition also clarifies that although the position may allow for a range of qualifying degree fields, each of the fields must be directly related to the duties of the position.”

This modifies the softening that was done by the Biden administration to mean that there must be a logical connection between the degree and job duties. The Trump administration emphasizes direct relation, instead of mere logical connection. This would restrict who can be hired for which role.

Cap exemptions

DHS plans to review and potentially narrow which employers and positions are exempt from the annual cap, affecting nonprofit research organizations, universities, and health care institutions that currently benefit from exemptions, Newsweek reported.

Scrutiny of third-party placements

Companies that place H-1B workers at other firms’ worksites, a common practice in the technology and consulting sectors, will come under more scrutiny.

Employer compliance

More scrutiny of companies that previously violated wage or labor condition rules.

Restrict employment-based green cards

This may stop employers use the O-1A visas and national interest waivers to hire high-skilled foreign nationals. O-1A visas are for individuals with an extraordinary ability in the sciences, education, business, or athletics (not including the arts, motion pictures or television industry).

The visa fee hike threw the IT companies into disarray initially, as companies rushed to call back all H-1Bs to the US. But the administration later clarified that it was for new petitions and now the fee has got legally challenged. Tech startups will have to hire American graduates as they cannot possibly pay $100,000 for foreign hirings but companies like Nvidia will not have much difficulty. Nvidia CEO Jensen Huang said his company will keep sponsoring H-1Bs and bear all related costs.


Universities and tech firms warn new policies will constrain STEM, medical hiring and innovation: Report

The proposals, listed in the Federal Register under the title Reforming the H-1B Nonimmigrant Visa Classification Program, include technical changes that could significantly affect Indian and other foreign nationals in the United States.

The Department of Homeland Security (DHS) said the definition of “specialty occupation” will now require a direct relationship between the employee’s degree and job duties, tightening the Biden-era standard of a “logical connection.” Cap exemptions for nonprofits, universities, and healthcare institutions are also under review, and companies placing H-1B workers at third-party worksites will face closer scrutiny. Employers previously found violating wage or labor condition rules could see increased oversight, and new restrictions on employment-based green cards and O-1A visas may limit hiring of high-skilled foreign nationals.

The fee initially caused confusion among IT companies, though DHS later clarified it applies only to new petitions. Tech startups are expected to struggle with the cost, while major corporations like Nvidia said they will continue sponsoring H-1Bs. Nvidia CEO Jensen Huang stated his company will bear all related costs.

Universities and research institutions have raised concerns about the impact on STEM and medical hiring. “It’s not as if this is done on a whim because we’re trying to replace American workers,” Lynn Pasquerella, president of the American Association of Colleges and Universities, told the New York Times. “It is done based on what the Trump administration is calling for -- on merit and who's the most qualified.” Pasquerella noted that many schools rely on H-1B visas to fill STEM and medical roles and that the pipeline for foreign physicians could be further constrained.

Dr. Jeffrey P. Gold, president of the University of Nebraska system, said the $100,000 fee could reduce the ability to hire workers on H-1B visas, affecting roughly 500 employees in technology, precision agriculture, and medical roles. “The new fee could result in leaving some positions unfilled, cutting expenses in other areas or passing on higher costs to students,” Gold told the New York Times.

Andrew Martin, chancellor of Washington University in St. Louis, said his institution sponsors around 285 H-1B visas annually and is still assessing the impact. The policy shift comes as tech companies are the largest users of H-1B visas, with nearly half of all approved petitions in the 2024 fiscal year going to the professional, scientific, and technical services sector, according to U.S. Citizenship and Immigration Services data.

Stanford University, the University of Michigan, the University of Maryland, and the University of Pennsylvania are among the institutions most affected, as universities warn the new rules may hinder their ability to innovate and maintain global collaboration in advanced research fields, including artificial intelligence.