The White House has begun advancing its new round of changes to the H-1B visa program that could significantly alter how U.S. employers hire highly skilled foreign workers.
The proposal—formally listed in the Federal Register at the end of September under the title “Reforming the H-1B Nonimmigrant Visa Classification Program”—is part of a broader regulatory agenda to reshape employment-based immigration.
Why It Matters
The Trump administration’s push to rewrite H-1B visa rules matters because it would reshape the main pathway for U.S. employers to hire highly skilled foreign workers.
Supporters say the changes will protect wages and curb program abuse, but critics warn they could make it harder to fill essential roles in technology, health care and research, drive high-value jobs and innovation overseas, and disrupt a talent pipeline that includes international students.
The outcome will influence not only who can work in the U.S. but also the country’s economic competitiveness and how far a White House can go in changing employment-based immigration without new legislation.
What To Know
The H-1B program, created by Congress as part of the Immigration Act 1990 to allow U.S. employers to hire foreign nationals in “specialty occupations,” is capped at 65,000 new visas per year, with an additional 20,000 available for individuals holding advanced degrees from U.S. institutions.
Many of these workers fill roles in technology, health care, education, and research.
According to the Department of Homeland Security (DHS) summary, the rule aims 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 says the changes are intended “to improve the integrity of the H-1B nonimmigrant program and better protect U.S. workers’ wages and working conditions.”
Key Rule Changes
Documents reviewed by Newsweek show the administration intends to revisit several long-contested issues:
Specialty Occupation Definition: A critical element is a possible tightening of the “specialty occupation” requirement. Earlier drafts circulated under the Trump administration in 2020 proposed that a qualifying job must require a degree in a “directly related specific specialty.” A similar phrase briefly appeared in a 2024 Biden-era rule but was later softened to mean there must be a “logical connection” between the degree and job duties. Reinstating stricter wording could limit eligible roles.
Cap Exemptions: DHS plans to review and potentially narrow which employers and positions are exempt from the annual cap, affecting nonprofit research organizations, universities, and health care institutions that currently benefit from exemptions.
Third-Party Placements: Oversight may increase for companies that place H-1B workers at other firms’ worksites, a common practice in the technology and consulting sectors.
Employer Compliance: The proposal would expand scrutiny of companies previously found in violation of wage or labor condition rules, raising the bar for those seeking to reapply for visas.
These steps follow other measures already announced, including a new $100,000 fee for many H-1B petitions filed after September, which drew sharp opposition from health care and education groups.
Supporters Emphasize Labor Protection
Supporters of the changes argue that the rules are overdue to prevent misuse of the program.
The American Federation of Labor and Congress of Industrial Organization (AFL-CIO) has long contended that some employers exploit H-1B visas to cut costs. “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.
Administration officials frame the move as closing loopholes. The DHS rule summary states the goal is to ensure that “U.S. workers are not adversely affected through wage depression or replacement” and to protect program integrity.
Critics Warn of Economic Impact
Business and higher education groups caution the changes could harm U.S. competitiveness.
The American Medical Association recently urged DHS to exempt physicians from the new $100,000 fee, citing physician shortages and the reliance of underserved areas on foreign-trained doctors.
Technology industry groups warn of broader consequences. Bill Gates told Congress previously that limiting H-1B visas puts the U.S. “at risk of losing its position of technological leadership,” while former Google CEO Eric Schmidt called visa caps “the stupidest policy the U.S. has ever had.”
Academic research supports these concerns. For example, Britta Glennon shows that restricting high-skilled immigration leads U.S. multinational firms to increase employment in foreign affiliates—one study finds that firms heavily dependent on H-1B hiring raised their overseas employment 27 percent more than less-dependent firms.
Other work from Harvard Business School links visa denials to lost innovation: one analysis found that after a 2004 cap reduction, firms dependent on H-1Bs cut research and development spending and saw patent output decline.
Universities warn that stricter rules could disrupt academic hiring and student pipelines. International students make up large shares of U.S. graduate programs in engineering and computer science, and data show their presence often correlates with more—not fewer—STEM degrees for American students.
Legal Challenges Likely
Legal experts say the administration faces potential court battles similar to those that blocked parts of its 2020 H-1B overhaul.
Federal judges found that prior efforts violated the Administrative Procedure Act by skipping normal notice and comment procedures.
Advocacy groups representing health care and education employers have already sued over the new $100,000 fee, arguing it exceeds presidential authority.
What’s at Stake
For employers: Higher costs and stricter compliance standards could reshape hiring, especially in tech, health care, and education.
For U.S. workers: Potential wage protections but risk of innovation and job growth shifting abroad if companies offshore talent.
For the economy: Changes may affect the pipeline of high-skilled labor, with implications for research, technology development, and competitiveness.
For foreign professionals: More hurdles to qualify and stay, raising uncertainty for students and skilled workers planning U.S. careers.
What People Are Saying
Jeff Joseph, President of the American Immigration Lawyers Association (AILA), said September 19, 2025: “By requiring H-1B workers to pay an exorbitant $100,000 fee to participate, the administration has effectively shut out teachers, non-profits, researchers, rural doctors, clergy, and other professionals who simply can’t afford Trump’s elitist revisioning of the H-1B program.”
Benjamin Johnson, Executive Director, AILA said in the same statement: “These announcements attempt to rewrite laws created by Congress … This sends a signal to the world’s top talent that the United States is closing its doors.”
American Medical Association and 53 medical societies in a September 25, 2025, letter to Kristi Noem: “We urge the Administration to categorically consider H-1B physicians entry into the U.S. to be in the national interest of the country, and waive the new application fee, so that H-1B physicians can continue to be a pipeline that provides health care to U.S. patients.”
Reid Hoffman, co-founder of LinkedIn, on a September 26, podcast discussing how the plan should be structured said: “Actually, Trump’s idea resembles an idea that I’ve been pitching for eight plus years … you have to do the whole idea otherwise it’s a disaster.”
What Happens Next
The proposed H-1B rule is still in its early stages, with the Department of Homeland Security expected to release a full draft for public comment in the coming months. Once the notice-and-comment period closes, DHS can issue a final version, potentially affecting the next H-1B filing cycle, though legal challenges could delay or block implementation.
Advocacy groups have already sued over related measures such as the new $100,000 visa fee, arguing the administration overstepped its authority. Employers and workers are being urged to watch for updates and consider filing under current rules before any changes take effect.