Trump immigration crackdown: New H-1B, OPT restrictions could have ‘ripple effects far beyond professional community’

While several of the proposed rules are still under review, immigration lawyers, universities, and companies say the impact is already being felt. Employers are becoming more cautious, students are growing anxious and legal experts say visa scrutiny has dramatically increased.

For Indian professionals and students, especially, the developments matter enormously. Indians receive more than 70% of H-1B visas issued every year, making them the biggest group affected by any change in the system.

Now the debate revolves around one big question: Is the US slowly shutting the door on the very talent it once worked hard to attract?

The salary hike that could price out smaller firms

The mood around H-1B visas changed after the administration introduced a $100,000 fee in 2025 for the entry of new H-1B visa holders. Now, the Trump administration is also trying to raise the minimum salaries companies must pay H-1B workers.

In March 2026, the Department of Labour proposed new prevailing wage rules that would push required salary levels much higher across different experience categories. Under the proposal, entry-level wages could jump sharply, moving from around the 17th percentile in federal wage data to roughly the 34th percentile. Depending on the role, salary requirements could rise by nearly 21 to 33 percent.

In simple terms, companies may need to pay tens of thousands of dollars more every year for the same role. The impact would likely hit younger graduates and mid-level professionals the hardest because companies may hesitate to spend significantly more on newer hires. Critics say the proposal could reduce opportunities for international graduates trying to get their first break in the US job market. Some companies have reportedly started reducing sponsorship plans altogether.

International students are now caught in the middle

International students may soon face another major hurdle. The administration is expected to move forward with rules that would replace the current “duration of status” system with fixed visa periods.

Right now, students on F-1 visas are generally allowed to remain in the US as long as they continue their studies and maintain a valid status. But under the proposed system, students could be given a fixed stay period with a strict expiry date.

That means students whose research programs or degrees take longer than expected may need fresh government approval just to continue studying.

Critics say the uncertainty could discourage students from choosing American universities altogether, especially for long PhD and STEM research programs. Meanwhile, universities are also worried the US may lose its edge to countries like Canada, Germany, Australia and the UK, all of which are aggressively trying to attract global talent.

The growing fear around OPT and STEM OPT

Among international students, perhaps the biggest concern is what happens to OPT. Optional Practical Training, or OPT, allows foreign students to work in the US for up to one year after graduation. STEM graduates can stay and work for an additional 24 months through STEM OPT.

For thousands of students, this period is extremely important because it gives them time to enter the H-1B lottery. Without OPT, that path becomes much harder. The Trump administration is expected to propose restrictions, or possibly even an end to parts of the OPT system, according to Forbes.

According to immigration attorney Rajiv S. Khanna, speaking to the financialexpress.com, “Eliminating parts of OPT would be among the most consequential provisions in this bill, if it ever became law, and its effects would ripple far beyond the Indian professional community. OPT is the bridge between an F-1 student completing their degree and either entering the workforce or competing in the H-1B lottery.”

He continued, “STEM OPT, in particular, provides post-degree work authorisation that serves as a de facto talent pipeline for American universities and employers and, ultimately, the employment-based green card system. Without OPT, many international students would face a binary choice: win the H-1B lottery on their first attempt immediately after graduation, or leave the country.”

Khanna also warned that American universities, especially STEM programs, could take a major hit because international students make up a large share of graduate research programs. He argued that removing OPT would weaken the talent pipeline feeding sectors like technology, healthcare and scientific research.

“The long-term economic consequence would be felt most in research, healthcare, and technology. The legal consequences are also significant: eliminating OPT would require unwinding decades of regulatory infrastructure and would face immediate litigation on administrative and statutory grounds,” he added.

He was equally critical of proposals linked to H-1B salary reforms, particularly ideas around a flat $200,000 wage floor. Khanna said such a rule may sound tough politically but could effectively shut out firms that rely on skilled foreign workers but cannot afford Silicon Valley-level salaries.

“A $200,000 wage floor combined with a wage-weighted lottery does not reform the system,” Khanna said. “It hands the entire program to large technology companies and shuts the door on every hospital, research lab, startup, and mid-sized employer that cannot match those compensation levels.” He added that such measures would not protect American workers but instead weaken the broader economic ecosystem that depends on skilled immigration.

Business groups have strongly opposed such moves, arguing that international students contribute billions to the American economy and help fill shortages in industries like AI, semiconductors and biotechnology.

According to NAFSA, international students contributed more than $43 billion to the US economy during the 2023-24 academic year and supported over 378,000 jobs.

Visa denials and RFEs are climbing 

A recent analysis by the National Foundation for American Policy found rising denial rates in late FY2025 for highly skilled immigration categories like EB-1 extraordinary ability green cards and National Interest Waivers. 

Those categories are usually meant for top scientists, researchers, entrepreneurs and experts. Authorities are now reportedly examining job complexity, educational qualifications, experience levels and salary details much more aggressively. 

The fight over skilled immigration is no longer just about visas. It is now tied closely to America’s global economic competition.

The US is trying to stay ahead in artificial intelligence, advanced manufacturing and semiconductor development. But many of those industries rely heavily on foreign-born engineers, researchers and graduate students.