When Donald Trump takes office on January 20, 2025, U.S. immigration policies will change and it will not be limited to the undocumented only, but also H-1B visa holders and their families.
From his previous administration, Trump’s policies will make it harder to get H1B or extend H1B, target H4 EAD, impose administrative burdens and make life of foreign workers in U.S. more complicated. During the first Trump administration, policies and regulations introduced significant changes to immigration reforms, including the H-1B visa program, which had major implications for employers and foreign workers.
These changes will impact hiring, compliance and foreign workers. Below are the changes and practical steps employees and employers can take to navigate this.
H1B Denial Trends
As Albert Einstein said:
“If you want to know the future, look at the past.”
The data tells us what to expect in the next Trump administration.
H1B denial data shows a stark contrast between Trump and Biden administration:
Trump Era (2017-2020)
- Denials reached 24%.
- Policies discouraged employers from sponsoring H-1B workers. The Trump administration’s efforts to reshape immigration policy, particularly through the Department of Homeland Security, significantly impacted the H-1B visa system.
Post-Trump Era (2021-2022)
- Denials dropped to 2%-4% under Biden, due to relaxed policies.
Project 2025
A conservative policy guidebook, “Project 2025,” outlines H1B reforms for a second Trump term:
- Wage-Based Allocations:
- Replace the lottery system with merit-based system prioritizing higher wages and advanced skills.
- Stricter Oversight:
- Increase monitoring to ensure U.S. workers are not disadvantaged by foreign hires.
- Shift to High-Skilled Labor:
- Make the program elite, only bring in the “best and brightest.”
Actions
- Increased Scrutiny:
- Bring back policies that require more documentation, increase costs and processing time for employers.
- Reduced Visa Approvals:
- Limit the number of H1B visas issued each year by tightening the eligibility criteria.
- High-Wage Jobs:
- Block entry-level positions, disadvantage recent graduates and small businesses.
What are H1B and H4 Visas?
H1B Visa Overview
- Purpose: Allows U.S. employers to hire foreign professionals in specialty occupations like technology, engineering, healthcare and education.
- Dependents: Spouses and children of H1B holders enter U.S. on H4 visas.
- Role in Economy:
- H1B holders are key to innovation and business growth.
- Many H1B workers are from India and China, countries with huge backlogs for employment based green cards.
- Tech companies are still pushing for more H1B visas, citing talent shortages in areas like semiconductor production (backed by $280 billion CHIPS and Science Act).
H4 Visa Overview
- Eligibility: Dependents (spouses and children) of H1B visa holders.Work Authorization: H4 spouses can work if:
- H1B visa holder has an approved I-140 petition for permanent residency or
- H1B status has been extended beyond 6 years due to green card backlogs.
WHAT IS H1B Visa: A Double Edged Sword?
H1B visa is a vital tool for U.S. companies to hire foreign talent in STEM, technology and healthcare. But it has also faced criticism for wage suppression and abuse.
1. H1B Benefits
Critical Workforce Support:
- 60% of H1B visas are issued to companies in professional, scientific and technical fields.
Program allows companies to fill skill gaps in high demand industries like IT and engineering.
Boost for Small Businesses:
- Research by Federal Reserve Bank of Richmond found that winning the H1B lottery increases a small business’s chance of survival over the next 5 years.
2. Criticisms and Controversies
Low Wage Categories
- Companies are exploiting the program to hire foreign workers at lower wages, displacing U.S. workers.
- Trump’s Truth Social’s H1B Petition in 2023 lists a $65,000 salary is an example of this.
Worker Displacement:
- Program has faced scrutiny over high profile cases like Disney’s 2014 layoffs where U.S. workers were replaced by H1B contractors and forced to train their replacements.
- Critics point to recent tech layoffs and growing number of domestic computer science graduates as reason to limit foreign hires.
Economic Impact of H1B Visa Program
Benefits
- H1B workers contribute to economic growth through innovation, entrepreneurship and increased consumer spending.
- Program has been linked to higher patent filings, research advancements and startup success.
Challenges
- Dependence on the program has led to concerns about domestic workforce development.
- Wage imbalances and perceived exploitation continues to be a criticism from labor advocates.
Trump Administration’s H1B Policy (2017-2020)
During his first term, Trump introduced policies that had a big impact on H1B program under the “Buy American, Hire American”executive order. This policy aimed to favor U.S. workers and increased restrictions on hiring foreign professionals. The changes to the deference policy also significantly impacted foreign national employees, causing confusion and challenges during the transition between administrations.
A Record of Disruption
Trump administration’s H1B policy was a departure from previous policies, favoring enforcement and control over efficiency. While it reduced fraud and backlog in some cases, it created huge problems for businesses that rely on global talent. The repeated H1B petition processing suspensions and new requirements showed the administration’s intent to limit immigration even for highly skilled workers that are critical to U.S. economy.
Actions:
Increased Scrutiny
- Tighter application reviews.
- USCIS to approve visas only for “most skilled” or “highest paid” workers.
Higher Wage Requirements:
- Employers had to pay higher salaries to prove job complexity and specialization.
More Denials:
- H1B denial rates went from 6% in FY 2015 to 24% in FY 2018.
- Denial rates are back to historic lows under Biden but could go up again.
Site Visits:
- Increased investigations to ensure compliance, more administrative burden on employers.
No Deference:
- USCIS stopped extending prior H1B approvals, employers had to resubmit extensive documentation for renewals.
Periodic Suspension of Premium Processing.
- 2017, 2018 and 2019, USCIS suspended premium processing for all or some H1B applications.
Blocked Entry.
During COVID-19 pandemic, Trump used 212(f) authority to block entry of certain H1B and L1 visa holders. This blocked thousands of high skilled professionalsand their families from entering the U.S. and causing disruptions to businesses.
Trump’s H1B Hypocrisy: Business vs. Politics
Former President Donald Trump has been a vocal critic of H1B visa program, has called it unfair to American workers and promised to reform it. But records show that Trump affiliated businesses, including his social media platform Truth Social and his son-in-law Jared Kushner’s investment firm have used the very program he complained about. This raises questions about his political rhetoric vs business practices.
Truth Social’s H1B Use
In June 2022, Trump Media & Technology Group (TMTG), the company behind Truth Social, filed an H1B application to hire a foreign worker. The application, later approved, was surprising given Trump’s history of opposition to the program.
Application Details
- Position: Not disclosed, based in Atlanta.
- Salary: $65,000 per year, the lowest wage level under H1B program.
- Result:
- Approved by U.S. Department of Labor.
- TMTG later said they did not hire the worker and terminated the process in November 2022.
TMTG’s Statement
- A company statement blamed “prior management”:
- Quote: “The company has never hired — and has no plans to hire — an H1B visa program worker.”
- But Devin Nunes, TMTG’s CEO and a Trump loyalist, was already the CEO when the application was filed.
H1B Use by Trump Related Entities
1. Trump’s Business
- Before he was president, Trump’s businesses, including hotels, resorts and modeling agencies were frequent users of H1B program:
- Hired foreign models and hospitality staff under the visa program.
- Filed dozens of H1B petitions between 2009 and 2016.
- H1B applications from Trump businesses stopped after 2017, during his presidency.
2. Jared Kushner’s Investment Firm
- Kushner’s firm used H1B program. Unlike Truth Social’s $65,000 application, the firm offered $200,000 per year to hire a foreign associate, the highest wage level for the program.
- The application was approved, in line with Trump’s promise of high wage, high skilled foreign workers.
Trump’s H1B Position
Trump has been a vocal critic of H1B program as bad for American workers. During a 2016 Republican primary debate, he called it “very bad” and “unfair” and said it allows companies to pay foreign workers less than American workers.
Quotes
2016 Debate:
- Admitted his own businesses used the program but wanted to get rid of it.
- Quote:
“I frankly use [H1B], and I shouldn’t be allowed to use it. We shouldn’t have it.”
Policy as President:
- Issued the “Buy American and Hire American” Executive Order in 2017, to reform and prioritize high wage, high skilled foreign workers.
- Said the program was used by tech companies to replace American workers with cheaper foreign labor.
H1B 2025: TRUMP II WILL FOLLOW UP ON TRUMP I
Despite Trump affiliates’ use of H1B program, a second Trump term will likely revisit the policies to restrict and re-shape the H1B program.
Here’s what was attempted and what will return:
1. Higher Wages
What Happened:
- In October 2020, DOL issued a rule to increase wages for H1B, H1B1, E-3 and PERM workers.
- Employers were caught off guard and it was implemented immediately, causing chaos.
- Employers had to pay software developers $208,000 in smaller cities, pricing out many businesses from hiring H1B workers.
- The rule was blocked in court but showed Trump’s intent to price foreign workers out of the market.
What to Expect:
- A second Trump administration will likely bring similar wage increase measures
- Wage-Based Distribution System
- A system that favors higher paying jobs, top tier foreign professionals and minimizes perceived competition with American workers.
- Modeled after Project 2025, a conservative policy proposal, this system would turn H1B into an “elite” program, focusing on high wage, high skilled workers.
- Higher wage thresholds will make hiring foreign workers more expensive, especially for entry level positions.
- A revived wage rule would make it impossible for companies to sponsor H1B workers. Many skilled professionals would lose their jobs and have to leave the US.
- H1B visas would be awarded to highest paid applicants, not through a random lottery.
Who Benefits:
- Large corporations with higher wages.
Who Suffers:
- Startups and small businesses can’t compete with high wages.
- Entry level professionals and recent graduates.
2. Definition of Specialty Occupation
The October 2020 rule tried to restrict eligibility by requiring a degree in a very specific field for a job to be considered a specialty occupation.
Additional documentation was required for third party placements and approvals for such cases were limited to one year. It is crucial to separate enforcement against illegal immigration from the processes of legal immigration, highlighting the importance of programs like the EB-5 visa as tools for economic growth.
What to Expect:
- Tighter eligibility criteria for industries like IT and consulting that use third party placements.
3. Wage-Based H1B Cap Selection
What Happened:
- Proposed regulation prioritized H1B lottery selection by wage level, higher paying roles first.
- Entry level and newly graduated international students were hit the hardest.
- The rule was blocked in court but it’s still a direction of policy.
What to Expect:
- Wage-based prioritization will severely limit opportunities for early career professionals and entry level hires.
4. Deference Policy
What Happened:
- In 2017, USCIS stopped giving deference to prior approvals during extensions and RFEs increased and denials skyrocketed.
- It created uncertainty and disrupted business operations.
- Reinstated under Biden administration, the deference policy is a memo not a regulation.
What to Expect:
- A second Trump administration will likely rescind the policy and create more uncertainty.
5. Stricter Employer-Employee Relationship
What Happened:
- The October 2020 rule required employers to show direct control over H1B workers, making it harder for placements at client sites.
- The rule limited H1B visas for workers at client sites to one year (previously three years).
What to Expect:
- A second Trump administration will likely bring back the previous restrictions on H1B workers at third party sites.
- For employers, it will add administrative and legal burden, especially for IT and tech companies that use project based or contract labor. It will increase costs for frequent renewals and make it less viable for employers to place workers at client sites.
- For employees, it will create uncertainty and instability for H1B visa holders at client sites, they will have to renew their status every year. It will reduce opportunities for workers in industries where short term project based assignments are common, like IT consulting.
H4 Work Authorization at Risk
Trump’s Previous Attempts
- In 2018, Trump administration tried to revoke the H4 EAD rule:
- USCIS announced they would rescind the regulation, citing “protecting U.S. workers”.
- It was stalled due to time constraints but showed the administration’s intent to limit H4 work.
2025 Likely Changes
Repeal of H4 EAD Rule:
- A second Trump administration will rescind the rule and many spouses will not be able to work.
- Families will face financial stress and many professionals will re think staying in the U.S.
Processing Delays:
- Administrative tactics like requiring new biometrics can extend H4 renewals to over a year without any policy change.
Who will be affected?
- Professionals in Backlogged Green Card Categories:
- Indian and Chinese nationals who wait decades for green cards.
- High Skilled Spouses:
- According to National Foundation for American Policy, 90% of H4 spouses have bachelor’s degree and 50% have graduate degree, they are valuable contributors to the US workforce.
H4 Spouse Administrative Burdens
Trump’s First Term: A Sample
- Biometric Requirements:
- USCIS introduced a rule requiring H4 spouses to submit fingerprints and other biometrics for EAD renewals and created delays.
- Processing Delays:
- Lawsuits showed that simple processes that took 12 minutes under normal circumstances were stretched to over a year.
- Intentional Hurdles:
- USCIS policies seemed designed to discourage H4 spouses from getting work authorization and many lost their jobs.
Legal Challenges and Reforms
- Edakunni v. Mayorkas
- In a lawsuit, over 40 companies including Amazon, Google and Apple supported bundling H4 EAD applications with H1B extensions to speed up processing.
- The resulting settlement reversed some of these delays but a new administration can bring back similar hurdles.
Other Potential H1B Policies in Trump II
No one has a crystal ball to see the future but here are some potential changes to the H1B visa program in the next Trump administration:
Changes
More Requests for Evidence (RFEs) and Denials
- Higher scrutiny will increase costs and delays especially for tech companies that rely heavily on H1B talent.
More Site Visits:
- More investigations to ensure compliance will add to the administrative burden for employers.
Suspension of Premium Processing
As seen in 2017, 2018 and 2019, Trump can suspend premium processing for H1B visas and we will see longer wait times and hiring challenges.
Entry Blocked
A new Trump administration can expand these restrictions to block:
- New H1B workers from entering the U.S
- Families of H1B workers from joining them
- H1B workers from entering the U.S after traveling abroad
Buy American, Hire American (BAHA) Policies:
Visa approvals will be evaluated against U.S workers.
Longer Processing Times:
Operational changes within immigration agencies will lead to more procedures, longer processing times and higher denial rates. H, L and O visa petitions and others will see more scrutiny and RFEs.
More Biometric Requirements:
Dependents applying for visa extensions will face new requirements.
Reinstated Travel Bans and Extreme Vetting:
Some countries will see longer visa issuance times.
Extension Denials
- Under Trump, H1B extension denial rates went from 3% to 12% and many workers had to go back to their home countries.
Mandatory interviews for employment based green cards.
Higher Costs for Employers.
Expect higher filing fees and compliance costs, more financial burden on small and mid-sized companies.
Stricter Cap Enforcement:
Trump administration can enforce stricter limits on the annual cap and reduce the number of visas approved.
International Students: Changing Landscape
International students will face more regulations, employment and mobility will be impacted.
Proposals
OPT restrictions:
- 24 month STEM OPT extension may be eliminated.
- Third party site work for OPT students may be prohibited.
“Unlawful Presence” policies tightened:
- Falling out of status will have harsher consequences, complicating school transfers.
Green Card proposals for graduates:
- Mentioned during the campaign, but will require legislative action, so uncertain.
Impact on International Students:
- Students who transition to H1B within the U.S will avoid some restrictions but will face challenges if they go out and try to come back.
Worksite Enforcement: Back in Focus
Employers be prepared for more audits, raids and compliance checks.
Expected Actions
I-9 and E-Verify Audits:
- More workplace raids along with paperwork audits.
- E-Verify compliance will be more scrutinized.
FDNS Site Inspections:
- Unannounced visits to employer and third-party sites will increase, targeting immigration fraud.
Wage and Hour Audits:
- Departments overseeing H1B, H2A and H2B programs will enforce wage and work condition standards more aggressively.
DOJ Investigations:
- Discriminatory hiring practices and misuse of recruitment for PERM applications.
Impact on Businesses and Workers
For Businesses
Startups and Small Firms will be at a Disadvantage:
Smaller companies which offer lower starting salaries will struggle to compete for foreign talent under a wage based allocation system.
Hiring/Planning Delays:
Longer adjudication times will force companies to look elsewhere, offshore or hire remote workers. Employers will face uncertainty in hiring timelines and will have to adjust their recruitment and workforce planning.
Higher Costs:
Higher wages, higher legal fees and compliance costs will go up, smaller employers will be discouraged to sponsor H1B visas.
Reduced Access to Talent:
Stricter eligibility rules will limit hiring flexibility. Risk of losing skilled workers to other countries with more welcoming immigration policies like Canada and Australia, especially in STEM and healthcare fields. Reduced ability to attract and retain global talent will hurt U.S. innovation and competitiveness in the global market.
Business Disruption:
Delays and more RFEs will disrupt operations.
Entry Level Talent Shortage:
Wage based prioritization will disadvantage recent graduates.
For Workers
Job Security at Risk:
- Higher denial rates and administrative hurdles will make it harder for H1B workers to maintain status.
Limited Career Growth:
- Wage based prioritization will favor senior professionals, sideline younger workers and new graduates.
More Denials
More documentation and stricter definitions will increase denial rates for H1B applicants.
Wage Inflation
- Higher minimum salaries will make it less viable for many U.S. companies, especially small and mid-sized businesses to hire foreign born professionals.
Delayed Processing
- More scrutiny will lead to longer wait times for approvals and disrupt project timelines and job opportunities.
Reduced Opportunities
- Restricting OPT programs and international student pathways will discourage foreign born students to pursue education and employment in the U.S.
Family Disruption:
- Making H1B process more unpredictable will stress H1B workers and their families. Revoking H4 EADs will put financial strain on dual income families and add more stress to H1B workers. Psychological and financial stress due to prolonged uncertainty.
Impact on U.S. Economy
The new administration will argue that restrictive H1B measures are needed to protect American jobs, but critics warn of the long term consequences:
- Talent Shortage: Technology and healthcare industries will struggle to find skilled workers.
- Global Competitiveness: Restrictive immigration policies will deter top global talent, benefitting countries like Canada and UK.
- Economic Contributions: International students and workers contribute billions to U.S. economy through tuition, taxes and innovation.
What Can Employees Do to Mitigate H1B restrictions?
Do Now:
- File for extensions, green cards or H4 EAD as soon as possible to avoid restrictions.
Stay Updated:
- Follow immigration policy changes and consult with attorneys.
Explore Options:
- Consider switching to O-1 or explore permanent residency options (like EB-5 investment green card which allows for concurrent I-485 filing as soon as possible). During Trump’s first term, stricter H1B policies led some foreign workers to explore the EB-5 program.
4. Legal Expertise:
Work with attorneys to navigate these changes.
What can Employers do to mitigate H1B restrictions?
Here are some tips for employers to attract and retain foreign born talent and prepare for aggressive DHS enforcement:
- File Now: File applications, extensions and green card petitions well in advance of deadlines to avoid delays. Fast track eligible H1B petitions before new rules take effect.
- Review Job Descriptions: Make sure they meet stricter definitions.
- Compensation: Get ready for higher wage requirements.
- Explore Options: Look into other visa options for employees who no longer qualify under new H1B rules. O-1, L-1 or green cards.
- Document the job is specialized: Employers may need to provide more evidence of the role’s requirements. Enhance Documentation: Make sure all filings are detailed and error free and robust.
- Plan for OPT restrictions: Identify ways to transition OPT employees to long term visa options.
- Internal Audit: Review I-9 and E-Verify records for compliance. Make sure job descriptions and compensation packages match new requirements. Prepare documentation to prove specialty occupation.
- Vendor Compliance: Ensure electronic I-9 systems meet DHS standards.
- Train Staff: Educate HR and IT on compliance.
- Document Everything: Keep files ready for audit for visa sponsored employees.
- Budget: Plan for increased costs for filing fees, wage mandates and legal compliance.
- Contingency Planning: Consider offshoring or hiring remote workers to mitigate talent shortage risk. Identify roles that can be filled by domestic talent or through alternative recruitment strategies.
- Support affected employees: Provide resources and legal assistance to H1B workers and their families.
- Advocate: Join industry groups pushing for balanced and fair immigration policies.
- Stay Updated: Follow policies to minimize disruption to foreign born employees. Follow policy changes closely, especially from the current administration. Anticipate and plan for changes and adjust hiring accordingly.
- Legal Expertise: Work with attorneys to navigate these changes. Consult with immigration attorneys to stay updated on policy changes. Conduct training for HR teams on compliance and best practices.
Who is Stephen Miller, the H1B Architect?
Stephen Miller, one of Donald Trump’s most loyal advisors, has been reappointed as Deputy Chief of Staff for Policy after Trump’s 2024 re-election. Known for his anti-immigration stance, Miller’s influence on US immigration policies will be bad news for Indian tech professionals and other foreign workers in the US. Here’s a deep dive into Miller’s policies, his impact on H1B visa program and what’s to come.
Who is Stephen Miller?
Bio:
- Born August 23, 1985 in Santa Monica, California. Raised in a conservative Jewish family.
- Education at Duke University solidified his reputation as a conservative voice, he was an active debater and writer for campus publications.
Political Career:
- Early roles included press secretary for Reps Michele Bachmann and John Shadegg.
- He rose to fame in 2016 as a senior policy advisor for Trump’s presidential campaign and later as a senior advisor and speechwriter during Trump’s first term.
Notable work:
- Architect of key immigration policies including travel ban on Muslim-majority countries and family separation policy.
- After administration he founded America First Legal, a group advocating for conservative legal principles.
Miller back at the White House
- In his new role he will oversee policy with a big focus on immigration and national security.
- Along with Tom Homan, Trump’s pick for “Border Czar”, Miller will implement tough immigration policies including H1B visa and deportation policies.
Miller on H1B Visas
Stephen Miller has been critical of H1B visa program, saying it displaces American workers and suppresses wages. His influence has led to several H1B targeted policies:
1. Stricter Eligibility Criteria
- Narrowing Specialty Occupations:
- During Trump’s first term, policies changed the definition of “specialty occupations” making it harder for professionals to get H1B visas.
- Jobs requiring general degrees like computer programming faced more scrutiny.
- Increased Denials:
- Denial rates for H1B visas went up under Miller’s influence creating chaos for employers and employees.
2. Higher Wages
- Cruz-Sessions Bill Influence:
- Miller supported policies requiring H1B workers to meet a high wage threshold, like $110,000 a year, making many professionals unaffordable for the US labor market.
- This would disproportionately impact entry level and mid level roles which are often filled by Indian professionals.
3. Restrictions on OPT and International Students
- Targeting OPT Programs:
- Miller backed policies to restrict Optional Practical Training (OPT), which allows international students to work in the US after graduation.
- Proposals included requiring students to leave the US for 10 years before reapplying for work visas.
Stephen Miller: Personal Life and Controversies
Family:
- Married to Katie Waldman, former press secretary to Vice President Mike Pence, with three kids.
Controversies:
- Miller has been under public fire, including leaked emails in 2019 showing him promoting white nationalist content.
- Despite all this he is still a big name in conservative circles.
How does H1B Program Work?
The H1B visa program has been a part of US immigration policy for decades, allowing employers to hire foreign professionals with specialized skills in fields like science, technology, engineering and mathematics (STEM). Despite its importance in filling workforce gaps and driving economic growth, the program faces challenges of limited supply, administrative burden and changing policies. Here’s a detailed explanation of the program, its process and its impact on US economy.
What is H1B Visa?
H1B is a nonimmigrant visa that allows US employers to hire foreign professionals for specialty occupations.
Key Facts
Eligibility:
- Jobs must be specialty occupations, typically requiring at least a bachelor’s degree or equivalent experience.
- Industries include information technology, engineering, mathematics, healthcare and academia.
Duration:
- Initial visa validity: 3 years.
- Extensions: Can be extended up to 6 years, and additional years for green card applicants facing backlogs.
- Dependents: H1B visa holders’ spouses and children can enter the US on H4 visas, and some spouses can get employment authorization (H4 EAD).
H1B Petition Process
Step 1: Labor Condition Application (LCA)
Before filing H1B petition, employers must file an LCA with the Department of Labor (DOL) and make the following attestations:
- The hiring will not displace US workers.
- The employer is offering the prevailing wage or higher for the area and position.
- Existing employees are notified of the intent to hire an H1B worker.
Step 2: USCIS Registration and Petition
- Electronic Registration:
- Introduced in 2020 to simplify the process and reduce paperwork.
- Employers register foreign nationals for H1B lottery before filing a full petition.
- Registration fee will increase to $215 per entry in FY 2026.
- Lottery:
- If registrations exceed the cap, a random lottery will determine who can move forward.
- Cap Breakdown:
- 65,000 general visas.
- 20,000 advanced degree visas for US graduates (master’s or higher).
- Filing the Petition:
- Employers with selected registrations submit detailed petitions, including proof of the job’s specialty and foreign national’s qualifications.
Recent Changes to the Registration System
Beneficiary-Centric Approach (Introduced in FY 2025)
- Replaces the old employer-centric system.
- Prevents abuse by not allowing duplicate registrations for the same individual.
- Impact:
- Reduced attempts to game the system.
- Fairer distribution of visas across unique beneficiaries.
Challenges and Statistics
High Demand vs. Low Supply
- The cap is always oversubscribed, demand far exceeds supply.
- FY 2025:
- 470,342 registrations, down from 758,994 in FY 2024 (beneficiary-centric system impact).
- Only 114,017 were selected in the lottery.
Denial Rates Over Time
- Under Trump:
- New H1B petition denial rates were 24% in FY 2018, 14% in FY 2017 and 6% in FY 2015.
- Post-Trump:
- Denial rates dropped to 2% in FY 2022, the lowest ever, due to policy changes and legal settlements.
COVID-19 Impact
- H1B admissions were 601,594 in FY 2019, 148,603 in FY 2021 (pandemic travel restrictions).
- By FY 2023, admissions were 755,020 (travel restrictions eased).
H1B Economic Contributions
Filling Labor Gaps
- Skill shortages: H1B workers fill the talent gap in STEM fields.
- Unemployment Trends:
- Occupations with high H1B hiring (IT and engineering) have low unemployment rates even during recessions.
Boosting US Innovation
- H1B professionals contribute to technological advancements:
- More patent filings and research.
- More venture capital funding for startups with H1B workers.
- Growth, IPOs and acquisitions.
Economic Growth
Wages:
- 2021 H1B median wage: $108,000.
- US national median wage: $45,760.
Regional Impact:
- Major cities like New York City and Silicon Valley benefit the most from H1B talent.
Consumer Spending:
- H1B workers drive demand for housing, goods and services and boost local economies.
H1B Myths Debunked
Myth 1: H1B workers take jobs from US citizens
- Fact: H1B workers fill jobs that would otherwise be unfilled by US workers.
- Study: H1B hiring correlates with lower unemployment in the industry.
Myth 2: H1B workers are underpaid
- Fact: Employers must pay the prevailing wage or higher.
- 78% of H1B workers earned above the DOL prevailing wage for their job in 2019.
Myth 3: H1B workers hurt the economy
- Fact: Immigrant workers drive growth through spending, innovation and job creation.
Long term challenges for the program
Green Card Backlogs
- Impact:
- Indians and Chinese face multi-decade waits for employment based green cards.
- Many H1B workers have to extend their visas multiple times creating uncertainty for themselves and their employers.
Policy Changes
- Wage mandates or stricter selection criteria may deter employers from participating in the program.
- Higher costs and administrative burden may force companies to move jobs offshore.
FAQs: H1B Policy Changes in 2025
General
1. What is the purpose of H1B visa program and why is it controversial?
The H1B visa program allows U.S. employers to hire foreign workers with specialized skills for specialty occupations where U.S. workers are not available. Controversy arises from the perception that the program is used to hire foreign workers at a lower cost than U.S. workers or outsource jobs. Critics say some employers abuse the system while proponents argue it drives innovation and fills skills gaps.
2. Why are Trump’s H1B policies a concern?
During Trump’s previous presidency, immigration policy reforms focused on American workers. For H1B visas, this meant:
- Tighter eligibility requirements.
- More compliance checks and audits.
- Higher paid and advanced degree applicants.
- Limiting perceived abuse by outsourcing firms. Given these precedents, there is a lot of fear that similar or more stringent measures will come back.
3. Will the current H1B program change drastically?
Uncertain but possible. Any major change will require new legislation or executive orders. Executive actions can change administrative rules or enforcement priorities while legislative changes can overhaul the program (e.g. wage levels, eligibility criteria or annual caps).
H1B Visa Holders and Applicants
4. Will current H1B holders lose their visa status if policies change?
No, policy changes do not retroactively revoke existing visas. However, H1B holders may face challenges with renewals, transfers or green card sponsorships if the process becomes more stringent or costly.
5. What if my H1B renewal is denied?
If denied, you will need to leave the U.S. immediately unless you:
- File a motion to reopen or appeal the decision.
- Switch to another visa type (e.g. F1 for studies or O1 for individuals with extraordinary abilities).
- Re-employ with a new sponsor, subject to approval.
6. Will the H1B cap be reduced?
While the annual cap for h 1b visas (currently 85,000 visas, 20,000 for advanced degree holders) is determined by legislation, the administration can influence the program by:
- Tweaking the lottery process to favor specific criteria (e.g. higher wages or U.S. degrees).
- Delaying visa issuance to reduce overall numbers.
7. Will H4 EAD be eliminated?
The Trump administration previously tried to rescind H4 EAD which allows certain H1B spouses to work. While the attempt was stalled, this issue can come back. Without H4 EAD, H4 visa holders will not be able to work legally in the U.S. and will face financial and emotional challenges.
8. Will the “dual intent” feature of H1B visa be changed?
The H1B visa’s dual intent allows holders to apply for green card without jeopardizing their non-immigrant status. Stricter policies can increase scrutiny of green card applications or PERM labor certification process making it harder for H1B holders to transition to permanent residency.
Employer Specific
9. How will stricter H1B policies affect my ability to hire talent?
If policies favor higher wages or advanced degrees, it will:
- Limit entry-level talent, especially in STEM fields.
- Increase competition for higher tier talent.
- Add administrative costs due to more documentation requirements.
10. What can employers do to prepare?
Employers should:
- Audit current H1B filings to ensure compliance.
- Develop contingency plans for key foreign employees (e.g. explore other visa types like L1 or O1).
- Stay updated on policy developments and engage immigration counsel for planning.
11. Will outsourcing companies be targeted?
Yes, outsourcing companies have been a target for stricter H1B policies due to abuse allegations. More site visits, audits and documentation requirements will affect these companies disproportionately.
Overall Impact on the Workforce
12. How will U.S. workers benefit from stricter H1B policies?
Proponents say that stricter policies will:
- Reduce foreign competition in certain industries.
- Encourage employers to invest in domestic workers.
- Increase U.S. wages in specialized fields.
13. Will stricter policies harm the U.S. economy?
Many think that limiting H1B program will:
- Slow down innovation in tech and healthcare sectors.
- Make U.S. less competitive by driving talent to other countries.
- Create labor shortages in areas like STEM fields.
14. How about universities and students?
Foreign students, especially in STEM fields, use H1B visas to stay in the U.S. after graduation. Stricter policies will deter international students from enrolling in U.S. institutions, impacting revenue and global competitiveness.
Unusual Questions and Situations
15. Will premium processing for H1B applications be eliminated?
Premium processing which allows for expedited review for an additional fee can be suspended or limited like it has been during peak periods. This will delay processing times and create uncertainty for employers and applicants.
16. Will the administration add more fees to H1B applications?
Yes, higher fees for employers sponsoring H1B workers are possible. This will impact small businesses or startups that rely on foreign talent but have tighter budgets.
17. Will changes target specific industries?
Policies can include industry specific restrictions or priorities, favoring one industry over the other (e.g. healthcare over tech or vice versa).
18. How likely are increased visa denials or RFEs?
During Trump’s previous administration, RFEs and denial rates for H1B visas went up significantly. This trend can continue, employers and applicants will need to submit more documentation.
How to Minimize Risks
19. How can I make my H1B application or renewal stronger?
- Document job duties, required skills and the need for the role thoroughly.
- Ensure wage levels meet or exceed Department of Labor standards.
- Work with an immigration attorney to avoid RFEs.
20. Should I look into other visa options?
Depending on your qualifications you can:
- O1 visa: For individuals with extraordinary ability.
- L1 visa: For intra-company transferees.
- F1 visa: For continued studies or OPT.
21. Can advocacy groups impact policy?
Yes, organizations representing immigrants and employers can lobby Congress, file lawsuits and build public awareness. Joining such groups or supporting their initiatives will amplify the voice of stakeholders.
22. How can employers and employees work together to address the uncertainty?
- Employers should communicate with affected employees, provide legal assistance and explore alternative pathways for work authorization.
- Employees should gather documentation and consult with legal counsel to assess options.
Conclusion: Get Ready for a Tougher Landscape
Trump back in the White House means big trouble for H-1B workers and their families – H-4 work authorization could be gone, visa requirements could get stricter and processing times could get longer. Employers and workers need to act now by staying informed, filing early and seeking legal advice.
By preparing now you can minimize the disruption and continue to succeed in the changing legal immigration landscape.
Helpful Resources
- USCIS Processing Times
- H-1B Visa Updates
- Visa Bulletin
Stay informed, stay tuned and prepared to mitigate any disruptions to your immigration journey.