The Trump administration has unveiled an ambitious regulatory agenda targeting employment-based and student immigration across three federal agencies. The roadmap, released through the regulatory agendas of the Departments of Homeland Security (DHS), Labor (DOL) and State, outlines proposed and final rules covering H-1B visas, Green Cards, international students, naturalisation, prevailing wages, PERM labour certification and employer compliance. Indian professionals account for the overwhelming majority of H-1B visa holders, and any tightening of eligibility or compliance requirements could affect both employers and new applicants.
What changed
DHS plans to introduce new regulations in August 2026 that would revise eligibility criteria for H-1B cap exemptions, tighten rules governing third-party placement of H-1B employees and impose greater scrutiny on employers found to have violated programme requirements.
The Department of Labor is considering changes to prevailing wage calculations used for H-1B, H-1B1, E-3 visas and PERM Green Card applications, under which the minimum entry-level wage could increase from the 17th percentile to the 34th percentile for a given occupation and location.
Highlights of the agenda include a Department of Labor plan to propose a revised labor market test for PERM labor certification applications and a proposal that could limit practical training options for international students. The agencies also plan to finalize proposed rules related to the admission of students and exchange visitors, the rescission of the current public charge regulation, and increases in prevailing wages in both nonimmigrant and immigrant programs.
While none of the proposed rules have taken effect yet, they signal the administration’s priorities and offer a preview of potential changes over the next year.
Why it matters
These regulatory changes will reshape your filing and advisory approach across three critical pathways:
H-1B cap exemptions and third-party placement. If you represent employers seeking cap exemptions or using third-party staffing, expect stricter scrutiny of both eligibility and client-site placement arrangements. Practitioners should audit current employer relationships for compliance exposure and begin counseling clients on tighter documentation requirements.
Prevailing wage escalation. A shift from the 17th percentile to the 34th percentile on entry-level wages could increase sponsorship costs materially and may make lower-paid roles uneconomical to sponsor. This affects not only new H-1B filings but also PERM labor certification timelines and green card affordability, particularly in lower-wage occupations and regions.
PERM labor market testing. A revised test for PERM labor certification could lengthen recruitment timelines or tighten the criteria that satisfy recruitment requirements. Practitioners should monitor Federal Register notices for the final test and brief clients on new documentation expectations.
International student work authorization. Limits on Practical Training (OPT) or Optional Training could discourage international students from U.S. degree programs or reduce post-graduation work options, affecting both university recruitment and the supply of H-1B candidates in downstream years.
Way forward
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Monitor the Federal Register for each agency’s proposed and final rules as they publish (expected August 2026 onward for DHS H-1B rule). While each agency sets a timeline for its regulatory activities, publication target dates are often deferred. Subscribe to Federal Register alerts filtered by DHS and DOL immigration keywords.
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Audit employer H-1B programs now for third-party placement arrangements, cap exemption reliance, and salary structures. Document current practices and exposure before new rules take effect, and brief employer clients on compliance updates as rules are published.
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Revise prevailing wage budgets and PERM strategy for employment-based clients. Run cost projections under the proposed 34th-percentile wage floor and begin feasibility discussions for roles that may become unsponsored under new cost thresholds.
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Advise international student clients early on potential OPT restrictions. If limiting practical training becomes final rule, counsel F-1 students on in-country work options and H-1B transition planning before rules take effect.
Disclaimer
This article is informational only and does not constitute legal advice. Fola Editorial is a software company, not a law firm. Immigration law and policy are complex and subject to frequent change. You must consult a licensed immigration attorney in your jurisdiction to understand how these potential regulations may affect your specific situation. Verify all information against the primary source document linked above and the final rules once published in the Federal Register.