US report flags sweeping H-1B visa restrictions and rising costs

A Congressional Research Service report says Trump administration changes to the H-1B programme have increased employer costs and scrutiny. The assessment details proposed wage hikes and fees, changes affecting foreign workers and families, and a sharp decline in certain overseas recruitment petitions.

Washington: The Trump administration’s sweeping changes to the H-1B visa programme have sharply increased costs and scrutiny for employers, while new government data indicate a steep decline in applications from major technology companies, according to a Congressional Research Service 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.

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According to the report, the administration replaced the traditional random visa lottery with a weighted selection process in February 2026, favouring higher-paid and more highly skilled applicants.

The revised system first applied to the lottery for H-1B employment beginning in October.

In March, the Department of Labor proposed increasing the wages employers must offer foreign professionals.

Under the proposal, entry-level prevailing wage requirements would rise from approximately the 17th percentile of comparable local wages to the 34th percentile.

Requirements for more experienced workers would also increase substantially.

The Labor Department estimated that the proposed wage changes would increase employers’ costs by approximately $1.46 billion in the first year.

The report also identifies a proposed $103,265 fee for certain H-1B petitions, separate from the $100,000 fee imposed in September 2025 on employers seeking to bring new H-1B workers from overseas.

The earlier fee has been temporarily blocked by litigation, according to the congressional assessment.

The report distinguishes these proposed requirements from measures already implemented.

Among the changes already 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 expanded scrutiny of employers suspected of misusing the programme or replacing American workers with lower-paid foreign employees.

In September, Trump issued an executive order requiring greater coordination between federal agencies when reviewing applications involving employers that had conducted layoffs or planned workforce reductions.

The report notes that existing law does not automatically prohibit employers that recently laid off American workers from hiring H-1B employees.

Other 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 employment.

It has also ended automatic extensions of work authorisation for spouses of H-1B workers, according to the assessment.

One of the report’s most significant findings concerns falling employer demand for overseas recruitment.

The report found a 91 per cent decline in initial petitions for consular processing from cap-exempt employers during the first eight months of the earlier $100,000 fee.

The H-1B programme allows American employers to recruit foreign professionals for specialised occupations, particularly in technology, engineering, finance and research.

Indian nationals have historically been the largest group of H-1B beneficiaries. The programme has also played an important role in the development of the US technology sector and the operations of Indian IT services companies serving American clients.