The Donald Trump administration in the United States is moving ahead with a plan to make big changes to the H-1B visa programme, which allows skilled foreign workers to work in the country. Apart from the proposed $100,000 mandatory fee, the government also plans to bring in new restrictions on how companies can use the visa and who can qualify for it.

The Department of Homeland Security (DHS) has listed a proposed rule change under the title “Reforming the H-1B Nonimmigrant Visa Classification Program” in its regulatory agenda. The proposal includes changes such as revising eligibility for cap exemptions, stricter checks on employers who break visa rules, and greater oversight on third-party job placements, among other measures.

According to the Federal Register, these steps aim to ensure “the integrity of the H-1B nonimmigrant program and better protect US workers' wages and working conditions.”

It’s still unclear whether the DHS plans to reduce the number of employers or job roles that are exempted from the annual H-1B visa cap. Currently, universities, research institutes, and healthcare organisations enjoy these exemptions. However, if these are changed, it could impact such institutions, Newsweek reported.

The proposed rule is expected to be formally published by December 2025. Earlier reports have also mentioned that the Trump administration was considering replacing the lottery system with a wage-based selection process for H-1B visas.

The H-1B visa is a temporary work permit that allows foreign professionals with special skills, especially in fields like technology and research, to work in the US. Created under the 1990 Immigration Act, it helps American companies hire people with technical knowledge that may not be easily available locally.

The visa, however, is not meant for permanent stay, though many holders later apply for permanent residency (green cards) through other visa categories.

Currently, the US government issues 65,000 H-1B visas every year, with an additional 20,000 slots for people who have earned a master’s or higher degree from a US university. These are usually given out through a lottery system. Certain employers, like universities and nonprofit organisations, are exempt from these limits.

According to the Pew Research Centre, nearly three-fourths of H-1B visas approved in 2023 went to applicants from India. Since 2012, over 60% of these visas have been issued for computer-related jobs, though other sectors, such as banking, healthcare, and education, also hire H-1B workers.

Research shows that H-1B visa holders usually earn the same or higher pay than their American peers with similar education and experience. US law requires companies to pay at least the prevailing local wage for the role, along with government fees that can exceed $6,000 per application.