Trump New H1B Rules: What Are The Consequences?

It is already known that United States, president Donald Trump has started to crack down on the international immigration population by imposing restrictions on the H1B visas.

H 1B visa filings to the United States have dropped sharply after several new policy changes and higher costs introduced by the US government. This shift is now affecting Indian IT companies and professionals who traditionally depended on this visa program.

According to recent data, H 1B registrations for the FY 2026 cap season fell to about 343,981, down nearly 27 percent from 470,342 applications the previous year. This is one of the steepest declines in recent years.

Experts say the fall is mainly due to stricter rules and higher financial burdens. One major change is a sharp increase in visa related fees and tighter scrutiny of employers sponsoring foreign workers. In addition, the US government has introduced new policies such as deeper background checks and expanded social media vetting of applicants.

Another reason is the evolving hiring strategy of Indian IT companies. Instead of sending large numbers of employees to the US on H 1B visas, many firms are now hiring more local workers in America and expanding offshore work from India. The rise of hybrid work models and automation has also reduced the need for onsite staffing.

The H 1B program allows US companies to hire foreign professionals in specialized fields such as technology, engineering and healthcare. Every year the US issues 85,000 visas, including 20,000 reserved for applicants with advanced US degrees.

Since Indians account for the majority of H 1B visa holders, these policy changes are expected to significantly impact Indian tech professionals and outsourcing companies in the coming years.