H-1B visa overhaul explained: Proposed reforms and their impact on students, graduates, and tech workers

The US H-1B visa program, long the gateway for skilled international workers in tech and other specialty occupations , is on the cusp of a major overhaul. The Department of Homeland Security (DHS), under the Trump administration’s 2025 proposals, is planning changes that could reshape who gets a visa, how it is awarded, and the rules governing employers and employees alike. For students and fresh graduates eyeing US careers, the reforms signal a new landscape that demands awareness and strategic planning.
Lottery out, wages in: A shift in H-1B allocationAt the heart of the overhaul is a proposed move from the traditional random lottery to a wage-based allocation system. Visas may now be awarded based on the salary offered, giving priority to higher-paying roles.

For fresh graduates and entry-level tech positions, this could mean stiffer competition. Industry groups warn that lower-paying jobs, including some teaching roles and early-stage tech positions, may no longer qualify as easily, potentially limiting opportunities for new entrants in the workforce.
Eligibility rules tightenedThe DHS is also revisiting who qualifies for an H-1B visa and related employment-based green cards. While full details are still under review, the goal is to prevent misuse of the program and ensure that visa holders are truly performing specialty occupations.

Expect closer scrutiny of job descriptions, qualifications, and employment terms. Students planning to apply after graduation may need to carefully match their skills to the visa’s strict definitions of “specialty occupation.”
Compliance and oversight: Employers under the microscopeAnother major focus is third-party placements, where H-1B workers are assigned to client sites. Employers may now have to submit detailed contracts, proof of ongoing work, and documentation showing that the position will continue throughout the visa term.

This is designed to crack down on practices where employees are moved between clients without oversight, ensuring greater transparency and fairness in the system.
Fixed visa durations and extensionsThe current “duration of status” model could be replaced with fixed visa periods, requiring extensions or reapplications after a set term. While this aims to streamline administration and reduce uncertainty, it adds an extra layer of planning for international students and new employees who hope to stay long-term in the US.
Who stands to be affected most?Indian nationals, who make up the majority of H-1B beneficiaries, are likely to feel the biggest impact, followed by Chinese professionals. Wage-based prioritisation and stricter compliance measures may make it harder for mid-level and entry-level tech workers to secure visas. Students and fresh graduates may face reduced chances of landing their first US role without strategic career planning.
Other reforms on the horizonBeyond H-1B changes, the administration is also exploring initiatives such as a “startup visa” aimed at attracting entrepreneurial talent to the US. This reflects a broader effort to reform the immigration system while supporting high-skilled, high-wage workers.
What students and early-career professionals should know

• Competition will rise: Wage-based visa selection favours experienced or higher-paying roles.
• Plan strategically: Internships, specialised training, and skill alignment with US industry needs will be more important than ever.
• Stay informed: Public commentary on these proposals will open in late 2025, with full implementation expected by 2026–2027.

The overhaul signals a shift toward merit- and wage-based H-1B allocations, increased oversight, and reduced reliance on chance. For students and fresh graduates aiming for careers in US tech or specialty sectors, the message is clear: early preparation, awareness of eligibility criteria, and strategic career choices are key to navigating the new H-1B landscape.