The Trump administration has embarked on a comprehensive initiative concerning U.S. visas, actions that analysts assert are strategically designed to dissuade U.S. employers from engaging foreign labor while simultaneously complicating the immigration process for prospective entrants.
The U.S. government intends to rescind the visas of those foreigners who entered the country for tourism or business, yet wish to extend their stay by seeking asylum. (AFP)
The array of measures extends from exorbitant new fees on H-1B applications and extensions to elevated minimum salary thresholds, affecting the student employment scheme and potentially elongating green-card waiting periods.
Recently, the administration announced a suspension of visa appointments worldwide, signaling a continuation of the immigration crackdown during the Republican leader’s second term.
Prior to these latest developments, access to the American dream had already begun to diminish. H-1B registrations plummeted from approximately 794,000 in 2023 to around 344,000 the previous year, as detailed by U.S. Citizenship and Immigration Services (USCIS) data.
Meanwhile, the proportion of U.S. businesses willing to hire foreign graduates from business schools has shrunk significantly, declining from 55% in 2022 to just 29% in 2026, according to a survey conducted by the Graduate Management Admission Council and reported by Bloomberg.
On the educational front, international applications for the admission cycle of 2026-27 have experienced a record decline of 10% year-on-year.
Notably, applications from India, which constitutes the largest international student cohort at American universities, saw a downturn of 15% during this same period.
Anticipated Implementation
Expansion of the 9/11 Response and Biometric Entry-Exit Fee
Commencing September 9, U.S. employers with 50 or more employees, where over half hold H-1B or L-1 statuses, will be obligated to pay $4,000 for each H-1B visa extension and $4,500 for each L-1 extension.
This fee, instituted in 2015, has now broadened its application. Previously, it applied solely to new hires or job transitions, with extensions remaining exempt.
Thus, what was previously a one-time charge upon hiring is evolving into a recurring expense. The U.S. government anticipates this alteration will generate approximately $157.3 million annually.
Indian IT companies are poised to feel the effects of this change almost instantly, as their U.S. business models rely on engineers deployed for extensive onshore durations, necessitating continual visa renewals.
The New Duration of Status Rule
Traditionally, the F-1 visa, designated for international students enrolled in U.S. academic programs, was valid for the ‘duration of status,’ allowing students to remain for the entirety of their studies without a predetermined limit.
The revised rule substitutes this indefinite validity with a maximum admission period of four years. Students in extended programs, including certain doctoral or medical tracks, will need to petition USCIS to extend their stay to finalize their education.
Furthermore, the grace period for remaining in the U.S. post-completion of studies has been reduced from 60 days to merely 30.
This rule is scheduled for enforcement on September 15, as per the Department of Homeland Security’s declaration.
However, it has been categorized as a “major rule,” entitling Congress to potentially override it through a joint resolution, should they choose to act. The DHS has indicated that it will communicate any changes regarding the effective date.
Indian nationals constitute a significant segment in U.S. doctoral and medical programs and will be disproportionately impacted by the bureaucratic challenges associated with this extension of stay.
Coupled with the proposed OPT fee (detailed below), this stricter four-year restriction introduces additional procedural burdens to a pathway to employment that many Indians have historically cited as a compelling justification for obtaining a U.S. education.
Caught in Limbo
The Original $100,000 H-1B Entry Fee
Initiated through a presidential proclamation in September 2025, this measure imposed a $100,000 fee for H-1B candidates hired from outside the U.S., invoking presidential authority to restrict entry for foreign nationals viewed as harmful to U.S. interests, exempting in-country hires and cap-exempt employers.
Prior to this, no equivalent entry fee existed, with the standard H-1B application fee sitting at $780 during the last year of the Biden administration.
A federal judge in Boston invalidated the proclamation in June, determining that the fee functioned as a tax, which could only be imposed by Congress. The Trump administration is currently appealing this ruling.
Meanwhile, the proclamation’s effectiveness is set to terminate this September unless a renewal is granted.
Indians are anticipated to be heavily affected by this rule, given their predominant status among H-1B visa recipients. In fiscal year 2025, they accounted for a staggering 70% of H-1B workers.
Proposed Measures Awaiting Final Adoption
The $103,265 Cap-Subject H-1B Fee
Under a new proposal, U.S. employers would incur an additional fee of $103,265 for each new H-1B petition filed under the annual cap, which encompasses an 85,000-visa pool, including 20,000 slots for candidates holding a U.S. Master’s degree or higher.
The DHS posits this fee as a means to recuperate the costs associated with administering the legal immigration framework.
This proposal was announced in the Federal Register on August 24, with a 30-day comment period concluding by late September, making possible its finalization by the year’s end.
Analysts predict this fee may encounter legal challenges, appearing as another means to introduce the $100,000 fee per H-1B application.
Imposing such a fee would significantly affect Indian H-1B applicants; for example, an employer would need to allocate approximately $10.3 million to file applications for merely 100 H-1B workers.
The Wage Rule
The U.S. Department of Labor (DOL) has suggested increasing the minimum salaries that U.S. employers must provide to foreign workers on H-1B, H-1B1, E-3, and PERM visas, which are classified as ‘prevailing wages.’
Within the current framework, employers must compensate foreign workers at one of four wage levels based on job seniority, from entry-level to expert. Each level corresponds to the salary benchmarks of U.S. workers in analogous positions.
The DOL proposal advocates for a substantial upward adjustment across all wage levels, necessitating that most H-1B and PERM positions be remunerated significantly more than presently.
The most pronounced increase is envisaged at the entry-level tier, where the minimum wage could surge by an estimated 30%. Although higher tiers would also see increases, the specific impact would depend on occupation and location.
The notice regarding this proposed regulation was disseminated in the Federal Register in March, and the public commentary period concluded in May. The DOL is presently evaluating the received feedback. This regulation has yet to be finalized.
Indian workers predominantly hold positions at levels I and II—early- and mid-career specialized roles—where the proposed wage increments could be the steepest.
An analyst anticipates that this change could impose a financial burden of up to $18 billion on the largest H-1B employers in the initial year of implementation, as reported by Bloomberg.
$100,000 OPT Fee
F-1 students will potentially be required to pay a $100,000 fee to utilize Optional Practical Training (OPT), a program allowing foreign graduates to work in the U.S. for one to three years following their degree completion in related fields.
Currently, there is no comparable upfront cost associated with OPT, which serves as the typical transition from an American education to an H-1B or other U.S. work visa.
Indian students represent the largest nationality using OPT, with over 363,000 enrolled in U.S. institutions for the 2024-25 academic year, based on government statistics.
Imposing a $100,000 fee could effectively terminate this post-graduation work avenue for the vast majority and fundamentally undermine the economic rationale for pursuing a U.S. degree.
The DHS has acknowledged the consideration of this regulation, although its proposal has not yet entered the Federal Register.
$100,000 Refundable Green-Card Bond
Certain immigrant visa applicants—those applying for a green card through the consular route from outside the U.S.—may be required to deposit a refundable bond up to $100,000.
This bond would be refunded upon naturalization as a U.S. citizen, typically occurring at least five years after green card approval.
Currently, no such bond exists for immigrant visas. The State Department operates a limited pilot program for visitor visas (B-1/B-2) involving bonds ranging from $5,000 to $15,000.
The State Department is assessing this proposal; it has not yet been published in the Federal Register and is expected to initially pilot it in a select number of countries.
Source link: Hindustantimes.com.
