Daijiworld Media Network - Washington
Washington, Oct 17: The Trump administration’s sweeping changes to the H-1B visa programme have significantly increased costs and scrutiny for employers, while new government data indicate a sharp decline in applications from major technology companies, according to a Congressional Research Service (CRS) assessment.
The report, dated October 14, examines executive actions affecting wages, visa selection, employment conditions and the ability of foreign professionals to remain in the United States.
According to the report, the administration replaced the traditional random visa lottery with a weighted selection system in February 2026, giving preference to higher-paid and more highly skilled applicants. The revised system was first applied to the lottery for H-1B employment beginning in October.
In March, the Department of Labor proposed raising the wages employers must offer foreign professionals. Under the proposal, entry-level prevailing wage requirements would increase from approximately the 17th percentile of comparable local wages to the 34th percentile, while requirements for more experienced workers would also rise substantially.
The Labour Department estimated that the proposed wage revisions would increase employers’ costs by approximately $1.46 billion in the first year.
The report also refers to a proposed fee of $103,265 for certain H-1B petitions, in addition to the $100,000 fee imposed in September 2025 on employers seeking to bring new H-1B workers from overseas. According to the assessment, the earlier fee has been temporarily blocked through litigation.
The CRS report distinguishes between proposed requirements and measures that have already been implemented. Among the changes introduced is an extension of an existing $4,000 biometric fee to certain H-1B and L-1 visa extension petitions.
The administration has also increased scrutiny of employers suspected of misusing the programme or replacing American workers with lower-paid foreign employees.
In September, US President Donald Trump issued an executive order requiring greater coordination between federal agencies when reviewing applications involving employers that had conducted layoffs or planned workforce reductions.
However, the report notes that existing law does not automatically prohibit employers that have recently laid off American workers from hiring H-1B employees.
Other proposed changes could directly affect foreign workers and their families. The administration has proposed eliminating the 60-day grace period that allows certain temporary foreign workers to remain in the country after losing their jobs.
It has also ended automatic extensions of work authorisation for spouses of H-1B visa holders, according to the assessment.
One of the report’s most significant findings concerns a sharp decline in employer demand for overseas recruitment. It recorded a 91 per cent fall in initial petitions for consular processing from cap-exempt employers during the first eight months following the introduction of the earlier $100,000 fee.
The H-1B programme allows US employers to recruit foreign professionals for specialised occupations, particularly in technology, engineering, finance and research.
Indian nationals have historically accounted for the largest share of H-1B beneficiaries. The programme has also played a significant role in the growth of the US technology sector and the operations of Indian IT services companies catering to American clients.