Overview

• DHS’s regulatory agenda lists a December 2025 proposal to revise who qualifies for cap exemptions, tighten third‑party placement requirements, and increase scrutiny of employers with past violations.
• A separate rule to prioritize higher‑wage offers in H‑1B cap selection has cleared OMB/OIRA review and is awaiting publication in the Federal Register for public comment.
• The selection reform would keep the beneficiary‑centric registration system and preserve the current order between the 65,000 regular cap and the 20,000 advanced‑degree exemption.
• Indian nationals remain the most exposed to changes, having received 58% of initial H‑1B approvals and 79% of extensions in FY2023, with wage‑weighted selection likely to disadvantage recent graduates and entry‑level applicants.
• Industry analysts expect Indian IT firms to file at higher wage levels, rely more on L‑1 and STEM‑OPT, expand local and nearshore hiring, and invest in automation, as Commerce Secretary Howard Lutnick publicly backs an overhaul.