The White House is moving forward with a new set of changes to the H-1B visa program that could reshape how U.S. companies recruit and hire skilled foreign professionals.
The proposal, officially published in the Federal Register in late September under the title “Reforming the H-1B Nonimmigrant Visa Classification Program,” is part of a wider effort by the administration to overhaul the system governing employment-based immigration.
According to a summary from the Department of Homeland Security (DHS), the proposed rule seeks to “revise eligibility for cap exemptions, provide greater scrutiny for employers that have violated program requirements, and increase oversight over third-party placements, among other provisions.”
DHS stated that the proposed updates are designed “to improve the integrity of the H-1B nonimmigrant program and better protect U.S. workers’ wages and working conditions.”
The administration is preparing to update these several long-disputed aspects of the H-1B program.
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Specialty Occupation Definition: One of the most consequential revisions could involve tightening what qualifies as a “specialty occupation.” In earlier drafts from the Trump era, eligible roles were restricted to positions requiring a degree in a “directly related specific specialty.” A similar provision surfaced briefly in a 2024 Biden administration proposal before being revised to require only a “logical connection” between a worker’s degree and their job duties. Reintroducing the narrower definition could significantly reduce the range of qualifying jobs.
Cap Exemptions: DHS is also evaluating current exemptions to the annual visa cap, a move that could impact nonprofit research institutions, universities, and health systems that have traditionally benefited from such carve-outs.
Third-Party Placements: The rule contemplates stricter oversight of employers that contract H-1B workers to other companies, a widespread practice in the tech and consulting industries.
Employer Compliance: Additionally, the proposal calls for heightened review of employers previously cited for wage or labor violations, increasing hurdles for repeat offenders seeking to sponsor new H-1B applicants.
Proponents of the proposed reforms say the updates are necessary to curb long-standing loopholes in the H-1B system. Labor groups such as the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) have argued for years that certain employers use the visa program to undercut wages and replace U.S. workers with cheaper foreign labor.
“They want a massive expansion of H-1B visa holders because they can pay them less. This is not about innovation and job creation. It is about dollars and cents,” AFL-CIO President Richard Trumka said previously about H-1B hiring practices.
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Administration officials have described the proposal as an effort to tighten oversight and prevent exploitation of the H-1B system. According to the DHS rule summary, the aim is to ensure that “U.S. workers are not adversely affected through wage depression or replacement” while maintaining the integrity of the visa program.
However, business and academic groups have warned that such changes could weaken America’s global competitiveness. The American Medical Association, for instance, has urged DHS to exempt physicians from the proposed $100,000 fee, pointing to ongoing doctor shortages and the heavy dependence of rural and underserved communities on foreign-trained medical professionals.
Technology industry leaders have also expressed concern over the potential fallout. Bill Gates previously told Congress that restricting H-1B visas places the U.S. “at risk of losing its position of technological leadership.”
The new H-1B proposal remains in the preliminary phase, with the Department of Homeland Security expected to publish a full draft for public feedback in the months ahead. After the comment period concludes, DHS could finalize the rule, potentially in time to influence the next H-1B filing season.
However, the process may face setbacks, as legal challenges are likely. Several advocacy organizations have already filed lawsuits against related measures, including the recently proposed $100,000 visa fee, contending that the administration has exceeded its legal authority.