2024 US Election Results Live: Trump’s victory signals increased scrutiny and potential H-1B visa challenges for tech firms and Indian diaspora
American companies brace for policy shifts, with stricter visa regulations expected
In the wake of President Donald Trump’s stunning election victory, American companies, particularly those in the tech sector, are preparing for significant changes in immigration policy that could affect thousands of foreign workers. Over the past several days, companies have been consulting with immigration attorneys to assess the immediate impact of Trump’s return to the White House, which is expected to result in greater scrutiny for H-1B visa applications and extensions, including more Requests for Evidence (RFEs) and potential denials.
The Trump administration’s approach to H-1B visas could bring a reintroduction of previously stalled policy changes. These changes would focus on ensuring that job positions qualify as specialty occupations and that a proper employer-employee relationship exists. The expected rise in RFEs and denials will challenge employers and foreign workers alike. For the fiscal year ending September 30, 2023, India accounted for over 72% of the total H-1B visa allotments, including initial applications and extensions, making the policy shifts particularly impactful for the Indian diaspora.
Kripa Upadhyay, an immigration attorney, shared her concerns with TOI, stating, “During the last Trump administration, there was significant disruption due to the introduction of ‘extreme vetting’ for visa interviews. Certain job categories, such as ‘Computer Occupations, All Other,’ may no longer be an option, as they may require applicants to demonstrate specific technical skills and knowledge.”
Impact on H-1B Visa extensions
One of the most significant challenges under a second Trump administration will be for H-1B visa holders seeking extensions. H-1B visas are typically issued for a maximum of three years, with the possibility of a three-year extension. If the beneficiary is on a path to a green card, additional extensions are allowed. However, during Trump’s first term, the administration rescinded the "deference policy," meaning that each extension application was treated as a new case, leading to increased uncertainty.
Snehal Batra, managing attorney at NPZ Law Group, explained, “We expect Trump will rescind the ‘deference policy’ again. If this happens, each extension application could face fresh scrutiny, leading to unpredictable outcomes for applicants.”
Higher wages and stricter eligibility standards
Another potential shift could involve policies targeting wage increases for H-1B workers and linking visa allotments to the highest salaries in specific occupations. This policy could severely impact international students, especially from India, who often transition from F-1 student visas to H-1B visas and typically start in lower salary ranges. Adam Cohen, partner at Siskind Susser immigration law firm, noted, “If a wage hike is announced for H-1B workers, it would badly impact international students.”
A significant ruling in December 2020 saw a US district court strike down the Department of Labor’s attempt to impose wage hikes of up to 100% for H-1B workers. However, with Trump back in power, such measures could be reintroduced, raising concerns over their impact on both tech companies and foreign workers.
Tech companies in focus
Many Indian tech firms, such as Infosys and Wipro, which rely heavily on H-1B workers, may face heightened challenges under Trump’s policies, particularly when it comes to third-party placements. A previous rule targeting these placements was struck down by the court but could be revived by the Trump administration. Immigration attorney Ashwin Sharma noted, “Stricter H-1B eligibility criteria and increased paperwork, particularly for third-party placements, led to denials and RFEs that complicated approvals. A second term would likely bring swift reinstatement of these policies.”
Global impact: workers to seek alternatives
With stricter H-1B policies, foreign workers may consider alternative routes, such as relocating to neighboring countries or even working remotely from India. The potential restrictions could also lead to higher filing fees, longer processing times, and a tougher visa lottery system. Charles H. Kuck, an immigration attorney, summarized the outlook: “Prepare for major H-1B changes: a lottery based on wages, higher filing fees, and stricter enforcement against job shops. Expect higher denial rates, longer processing times, no immigration reform, no increase in green card allotments, and no changes to the 7% per-country limit.”
As the H-1B visa window opens in March, American employers and foreign workers, especially from India, will be keeping a close eye on the new policies set to take shape under President Trump’s administration.