Trump Moves to Overhaul H-1B Visa Programme With New Rules

The Trump administration is preparing to advance a major overhaul of the H-1B visa programme, with a new rule scheduled for action in August 2026. 

The proposal, titled “Reforming the H-1B Nonimmigrant Visa Classification Program”, has been listed in the Federal Register after its initial posting last year, when action was scheduled for December 2025. The Department of Homeland Security (DHS) has identified three main areas for reform: cap exemptions, employer compliance and third-party placements.

The H-1B programme has operated under an annual quota since the Immigration Act of 1990, when the cap was set at 65,000 visas. An amendment in 2004 increased the total to 85,000, including 20,000 places for people with advanced degrees from US universities.

Certain employers, however, have traditionally been exempt from the annual cap. These include universities, non-profit hospitals, affiliated schools and government research organisations. They can file H-1B petitions outside the annual lottery cycle.

The proposed rule is expected to reassess the criteria for these exemptions and could narrow eligibility for organisations that currently benefit from them. The changes would affect institutions that have relied on the cap-exempt system to recruit skilled workers without being subject to the annual limit.

DHS is also expected to strengthen oversight of employers that violate H-1B programme requirements. Potential violations include paying less than the certified wage, misrepresenting job duties and assigning workers to locations that differ from those approved in their petitions.

The administration has said tighter enforcement would strengthen wage protections and improve compliance with programme rules. The changes are intended to address concerns that some employers may use the H-1B system to reduce labour costs or exploit foreign workers.

Third-party placements are another area targeted by the proposed reforms. Under current rules, when an H-1B worker is assigned to work for a client organisation, the position must qualify as a “specialty occupation” based on the client’s requirements rather than solely those of the petitioning employer.

The proposed changes are expected to increase scrutiny of these arrangements. DHS has raised concerns that some staffing companies have used third-party placements to assign H-1B workers to positions that may not meet the statutory requirements for a specialty occupation.