US revises rules to enhance flexibility and strengthen oversight for H-1B visa programme.
Donald Trump signed a total of 220 executive orders during his first term, from January 2017 to January 2021. As of January 2025, 72 of them (33%) have been revoked, many by his successor, Joe Biden.
Since January, President Donald Trump’s administration has launched a series of aggressive immigration policies following his inauguration on January 20, 2025. Over the first week, more than 50 executive actions have been taken, including expanding deportations and fortifying the U.S.-Mexico border. Central to Trump’s immigration agenda is the deportation of undocumented migrants, with plans to increase these removals significantly, using military aircraft to deport thousands from areas like San Diego and El Paso. The administration has also revived expedited removals, now applicable across the U.S. for migrants unable to prove they've been in the country for more than two years.
Trump's policies also involve halting asylum processing and refugee resettlement programs, along with reinstating the controversial "Remain in Mexico" policy. The administration has also scrapped the CBP One app used for scheduling migrant appointments, stranding thousands of individuals at the border. This has led to growing concerns over migrants' safety, as countries like Mexico build shelters to accommodate deported individuals.
In addition to military and Border Patrol reinforcements, Trump has expanded the role of Immigration and Customs Enforcement (ICE), including reversing limits on raids in sensitive areas like schools and hospitals. The full impact of these actions remains unclear, as many are still being rolled out.
H-1B Visa Modernization Rule Implemented as Biden Administration Wraps Up
Just days before Donald Trump took office as the 47th President of the United States on 20 January 2025, the Biden administration introduced a key regulation concerning the H-1B visa program. The H-1B Modernization Rule will take effect on 17 January 2025, offering significant adjustments to the way the H-1B program operates.
The H-1B visa is a vital immigration pathway that allows U.S. employers to temporarily hire foreign workers with specialized bachelor's degrees or higher. However, each year, the number of applicants for H-1B visas exceeds the allocated quota of 85,000, making it a highly sought-after visa. Most recipients of the H-1B visa are employed in industries such as technology, engineering, healthcare, finance, specialized businesses, and academia.
Key Changes to the H-1B Program
The government press release underscores that the H-1B Modernization Rule will “provide greater benefits and flexibilities for U.S. employers and specialty occupation workers, helping to meet U.S. labor needs.”
Ur M. Jaddou, director of U.S. Citizenship and Immigration Services (USCIS), explained the significance of the changes:
“The H-1B program was created by Congress in 1990, and there’s no question it needed to be modernized to support our nation’s growing economy. The changes made in today’s final rule will ensure that U.S. employers can hire the highly skilled workers they need to grow and innovate while enhancing the integrity of the program.”
One of the important aspects of this final rule is that it is structured in such a way that would make it difficult for the next president to reverse. As global law firm Mayer-Brown highlights, “A president can easily rescind, modify, or replace executive orders and administrative policies without requiring public input or a lengthy procedural process. However, regulations, such as the H-1B Modernization Rule, are formal rules created by federal agencies that have the force of law and require agencies to go through a formal rulemaking process to make changes.”
What Does This Mean for International Students?
For international students aiming for an H-1B visa, several of the changes will be noteworthy:
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Increased Flexibility for Degree Eligibility: One of the primary changes is how degrees are tied to the H-1B job requirements. In the past, international graduates needed to have a degree that was “directly related” to the position they were applying for, which at times excluded applicants with interdisciplinary or non-specific degrees, even if their education was a strong match for the job.
The new rule changes the language to say that a degree must be “in a directly related specific specialty,” where “directly related” is defined as having a “logical connection” between the degree and the job duties. Although this change may seem vague, it allows a broader range of applicants to qualify, particularly those with degrees in specialized fields not easily defined by traditional degree titles. According to Immigration Impact, USCIS has clarified that the focus is on the “actual course of study” rather than the degree title.
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Longer Transition Period for F-1 Visa Holders: International students on F-1 visas who have completed their degree programs (including Optional Practical Training, or OPT) previously had only 60 days to maintain legal status if their H-1B petition had not yet been processed by October 1. With the new rule, this “gap” has been extended to April 1, allowing more time for these students to transition to H-1B status. This automatic "cap-gap" extension is now codified by USCIS.
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Entrepreneurial Opportunities for Graduates: The new rule also introduces an opportunity for international students with a “controlling interest” (owning at least 50%) in a business to apply for the H-1B visa. However, the validity of the visa for such entrepreneurs will be limited to 18 months for the initial period and the first extension, compared to the standard three years for other H-1B visas.
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Expanded Non-profit and Governmental Exemptions: There has been a change in how non-profit and governmental organizations can qualify for exemptions from the annual cap on H-1B visas. Now, these organizations need only prove that research is “one of their fundamental activities,” rather than the sole focus of their work.
Strengthened Oversight for Employers
Along with making it easier for employers to access global talent, the new rule also introduces stricter scrutiny to prevent abuse of the program. USCIS will now require employers to submit additional documentation, including proof that they have a genuine job opening and are not just anticipating a position for an H-1B worker. Furthermore, employers may be subject to random site visits from immigration authorities, and penalties will be imposed for any inaccuracies or suspected fraud.
Secretary of Homeland Security Alejandro N. Mayorkas commented on the importance of these changes:
“American businesses rely on the H-1B visa program for the recruitment of highly skilled talent, benefitting communities across the country. These improvements to the program provide employers with greater flexibility to hire global talent, boost our economic competitiveness, and allow highly skilled workers to continue to advance American innovation.”
Changes for J-1 Visa Holders
Additionally, there have been changes that benefit J-1 visa holders. In December 2024, the U.S. State Department narrowed the list of countries on the Exchange Visitor Skills List to 45 countries. This list includes countries with specialized skill needs, such as engineering, and requires J-1 students from these countries to return home for two years before applying for another U.S. visa. Importantly, China and India were removed from this list, a major shift given the large number of students from both nations.
What’s Next Under President Trump?
The shift in administration raises uncertainty about the future of U.S. immigration policy under President-elect Trump. Trump’s stance on immigration has been historically restrictive, but this time he is receiving significant support from the tech community, including figures like Elon Musk. Musk has expressed his support for the H-1B program but advocates for raising the minimum salary and increasing the costs to employers for retaining H-1B workers.
At the same time, opposition to the H-1B program is strong among other Republican factions, and debates are expected over the future of the visa program. Research has consistently shown that the H-1B program helps drive innovation and create jobs. As Rogé Karma notes in The Atlantic:
“Most careful experimental studies on the program find that, overall, it has neutral or positive effects on the employment prospects and wages of native-born workers. Companies that receive H-1B visas tend to grow faster than companies that don’t—likely because many of them really are hiring foreign workers whose skills they need—and thus often end up employing more native workers overall. Employers receiving H-1B visas also tend to develop new products and technologies at higher rates, which helps create new jobs.”
As the political landscape shifts, it remains to be seen how the H-1B program will evolve under the new administration, but the recent changes introduced by the Biden administration mark a significant step forward in modernizing the program to meet the needs of the U.S. economy.
