The Donald Trump administration has proposed a far-reaching overhaul of the H-1B visa programme, extending well beyond the new $100,000 fee now required from employers seeking to hire foreign workers.

The proposals, formally listed in the Federal Register under the title Reforming the H-1B Nonimmigrant Visa Classification Programme, outline new definitions, compliance rules and restrictions that could directly affect Indian professionals and employers.

List of the proposed and announced H-1B visa changes under the Trump administration in 2025:

* $100,000 fee on every new H-1B petition filed by employers hiring foreign nationals.

* Stricter definition of "specialty occupation" -- degrees must be directly related to job duties, not just logically connected.

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* Review of cap exemptions -- universities, nonprofits, and research institutions may lose automatic exemption from the annual H-1B cap.

* Closer scrutiny of third-party placements, particularly in technology and consulting sectors.

* Increased monitoring of employers with prior violations of H-1B or wage rules.

* Weighted lottery system proposal -- replacing random draw with a wage-based system giving higher chances to better-paid roles (Wage Levels 3-4).

* Mandatory employer declarations during registration: Wage, wage level, SOC code, and job location.

What changes in the definition of 'specialty occupation'

The Department of Homeland Security (DHS) has proposed a sharper definition of what qualifies as a "specialty occupation."

"The specialty occupation definition also clarifies that although the position may allow for a range of qualifying degree fields, each of the fields must be directly related to the duties of the position," said the DHS in its draft.

The modification replaces the Biden-era flexibility that allowed for a logical connection between a worker's degree and job duties. The new approach would require a direct relationship, effectively narrowing who can be hired for which role.

Narrowing cap exemptions

DHS has also indicated that it will review and potentially reduce the range of employers and positions exempt from the annual H-1B cap. This could hit nonprofit research organisations, universities and healthcare institutions that currently benefit from such exemptions, Newsweek reported.

Third-party placements under closer watch

Technology and consulting firms that deploy H-1B staff to client sites will face tighter scrutiny. The draft rule also calls for more oversight of companies that have previously violated wage or labour conditions.

Officials have linked these measures with misuse of other visa categories such as O-1A, which is reserved for individuals with extraordinary ability in science, education, business or athletics.

Compliance rules and employer penalties

Employers found in violation of H-1B regulations could face increased monitoring or be restricted from sponsoring foreign talent. The administration said such measures would uphold integrity in the system.

The $100,000 fee, announced in September, initially caused confusion among IT companies, some of which even recalled H-1B workers from the United States. The administration later clarified that the charge applied only to new petitions, not existing visa holders.

Tech startups have argued that the cost would make it impossible to hire foreign specialists, but large corporations appear better placed to absorb the burden.

"Nvidia will continue sponsoring H-1B visas and bear all related costs," said Jensen Huang, Chief Executive of Nvidia.

Weighted lottery system proposed for 2025

In a separate rule, DHS has suggested replacing the current random H-1B lottery with a wage-weighted draw. Registrations tied to higher wage levels would receive more entries, favouring roles at Wage Levels 3 and 4.

Employers would need to declare the offered wage, wage level, SOC code and work location at the time of registration. The proposed rule, published on September 24, 2025, could take effect for the March 2026 filing season.

The lottery reform complements Trump's earlier proclamation of September 19, which introduced the $100,000 fee. Together, they represent what officials describe as a package of "integrity and national interest" reforms.

Commerce Secretary hints at more changes

The US Commerce Secretary has suggested that more adjustments to the H-1B system could follow before 2026, signalling an even tighter framework for foreign worker admissions.

Legal challenge calls the fee unconstitutional

Immigration lawyers have already moved to challenge the $100,000 order in court, arguing that it amounts to an unconstitutional tax.

"No President has the authority to create new taxes. The $100,000 H-1B tax will be struck down," said American immigration attorney Charles Kuck on X.

Trump has defended the move as necessary to protect American jobs, saying that "large-scale replacement of American workers" has discouraged citizens from pursuing science and technology careers.

A lawsuit filed against the proclamation argues that it "transforms the H-1B programme into one where employers must either 'pay to play' or seek a 'national interest' exemption, which will be doled out at the discretion of the Secretary of Homeland Security."

"There are several reasons that support this litigation, but the fundamental legal principle in our constitutional republic is that only Congress can create taxes. The $100,000 proclamation is not a fee, it is not a gift, and it is not a fine. It is a tax," said Kuck

H-1B visa: From stricter job rules to $100,000 fee, list of planned changes