H-1B Visa Overhaul: White House Nears Finalization of Transformative Changes
A comprehensive regulatory overhaul of the H-1B visa programme is currently under review by the White House Office of Information and Regulatory Affairs (OIRA), marking the final stage before its public release, as per a report by Bloomberg Law.
Last year, US Citizenship and Immigration Services (USCIS) issued draft regulations that adjusted eligibility criteria, including degree requirements, for the specialty occupation visas primarily used by the tech industry to hire skilled foreign workers. On Thursday, OIRA received the final rule (1615-AC70), the report added.
Business Today was unable to verify the development independently.
The earlier proposed rule also restructured the annual lottery system for H-1B visas, ensuring each applicant has an equal chance in the selection process. This change was finalised in January ahead of the fiscal 2025 visa lottery.
The H-1B visa programme is capped at 85,000 new visas annually.
In a separate development, regulations aimed at improving worker protections in two seasonal visa programmes also passed White House review earlier this week.
A rule released in draft form last year (RIN 1615-AC76) focused on combating illegal fees and other abuses in the temporary H-2A and H-2B visa programmes, which serve agricultural and non-farm seasonal workers, respectively. The proposed regulations include penalties such as up to 4-year bans for employers found violating worker protections. The proposal also removed the requirement to annually publish the list of countries eligible for these seasonal visa programmes.
The changes if implemented will impact H-1B visa applicants especially the Indian IT sector, which is a major beneficiary of the visa programme.
Drop in US H-1B visa approvals
In fiscal year 2024, the top seven Indian IT companies collectively saw only 7,299 H-1B visa petitions for new employment approved, marking a dramatic decrease from the 14,792 approvals reported in fiscal year 2015. This analysis, conducted by the National Foundation for American Policy (NFAP), a non-partisan think tank based in the United States, highlights a significant downward trend in approvals for these firms.
The 7,299 approvals accounted for just 5.2% of the total H-1B visa approvals for FY24, equating to a mere 0.004% of the US civilian workforce. Denial rates for H-1B visa applications remained low, recorded at 2.5%, a slight drop from 3.5% in FY23, according to the NFAP findings.
The report also cautioned that denial rates could rise if the incoming Trump Administration reinstates the restrictive immigration policies seen during his first term.
Meanwhile, the US Department of Homeland Security (DHS) announced a significant extension of the automatic work permit renewal period for spouses of H-1B and L-1 visa holders, according to an announcement by USCIS. Starting January 13, 2025, the renewal period will increase from 180 days to up to 540 days for applications submitted on or after May 4, 2022.
