The US has implemented a significant crackdown on H-1B visa applications, with registrations dropping by 38.5% from 3,43,981 in fiscal year 2026 to just 2,11,600 in fiscal year 2027, according to USCIS data. As reported by Business Standard, this dramatic reduction represents the Trump administration's push toward its 'America First' immigration agenda, which focuses on attracting what it calls 'top talent' while reducing approvals for lower-wage categories. The USCIS stated that the programme is now producing 'better results' under President Donald Trump's policies, with the agency approving more applicants with higher salaries and advanced qualifications.
A significant transformation in H-1B applicant profiles has emerged, with 71.5% of selected applicants this year holding a US master's degree or higher, representing a sharp increase from 57% last year, according to USCIS data. As reported by Business Standard, only 17.7% of selected registrations now fall into the lowest wage category, signalling a deliberate effort by the administration to prioritise higher-paid talent. This shift particularly affects Indian students, who make up 71% of all approved H-1B applications in recent years, with China in second position. The numbers suggest that foreign students graduating from American universities are gaining a significantly stronger advantage in the H-1B process.
The changes are expected to have the most significant impact on Indian students and tech professionals, who form the largest H-1B applicant pool, according to Business Standard reports. Indians dominate the US international student ecosystem, especially in STEM, engineering, computer science, artificial intelligence and data science programmes. The H-1B programme has historically been one of the biggest migration routes into the US for Indian tech workers, especially through large outsourcing firms, consulting companies and technology service providers. However, the latest USCIS messaging suggests the system is increasingly favouring direct hiring, specialised expertise and premium talent over large-scale volume hiring models.
On September 19 last year, Trump signed a proclamation 'Restriction on entry of certain non-immigrant workers' that restricted the entry into the US of those workers whose H-1B petitions are not accompanied or supplemented by a payment of $1,00,000, as reported by Business Standard. The USCIS framed the decline as evidence that abuse of the system is reducing, with the agency stating that 'these changes are all good, in the sense of being less bad' but emphasizing that the real solution lies in abolishing the H-1B programme altogether. The major fields affected include technology, engineering, medicine, and research, with the changes potentially making the H-1B process tougher for entry-level applicants while improving prospects for highly specialised professionals.
New United States immigration rules will create more procedural hurdles for Indian professionals and students seeking permanent residency. Those already in the US may need to complete the process in their home countries, according to a new USCIS policy. This change requires individuals seeking permanent residency to complete the process abroad, a move criticized by immigrant aid groups as potentially endangering vulnerable migrants. Experts believe lawful temporary visa holders, especially H-1B visa holders, will be disproportionately affected by these new requirements.
