Explained: Congress H-1B Wish-List to Trump and Indian Talent

(UNITED STATES) Congress and the White House are closing ranks around an H-1B wish-list that would raise costs, shorten stays, and narrow the path to work in the United States for many foreign professionals. At the center is a $100,000 entry fee set by a Presidential Proclamation in September 2025 for new H-1B petitions, alongside a push in Congress to reduce maximum stay to three years, replace the random lottery with a wage-based system, and block sponsorship for entry-level roles. These moves matter most to Indian talent, which has long made up the largest share of H-1B holders, especially in technology and consulting.

As of October 22, 2025, the $100,000 fee remains in place for most applicants, though reports suggest a targeted waiver for Indian nationals and recent graduates after diplomatic talks. The broader reform bill, with bipartisan support, is not yet law, but lawmakers and agency leaders are signaling more oversight, tighter rules for staffing-heavy firms, and a harder line on companies that use H-1B while laying off U.S. workers.

Core elements of the proposals

• $100,000 entry fee (in effect for most): A steep cost imposed by Presidential Proclamation for new H-1B petitions, with limited exceptions and reported carve-outs after diplomacy.
• Three-year maximum stay (proposed): H-1B duration would be cut from six to three years, unless the worker has an approved immigrant petition (Form I-140) within that window.
• Weighted, wage-based selection (proposed): Replace the random lottery with a system that prioritizes higher wage levels and U.S.-earned STEM advanced degrees.
• Entry-level sponsorship ban (proposed): Bars filings for junior roles, directly affecting recent graduates and early-career professionals.
• Tighter employer rules (proposed): New restrictions and audits for firms with heavy H-1B/L-1 ratios; expanded reporting and penalties.
• End to “B-1 in lieu of H-1B” (proposed): Close a short-term assignment route used by some multinationals.
• Longer no-displacement protection (proposed): Extend the no-displacement window from 90 to 180 days before and after hiring.

These items together point to fewer openings for lower-wage or early-career roles and more emphasis on high salaries, advanced STEM degrees, and earlier permanent-residence sponsorship.

Immediate effects: the $100,000 fee and hiring behavior

Under the Presidential Proclamation, new H-1B petitions face a $100,000 entry fee before a worker can start, with limited exceptions. This single line item reshapes hiring plans for U.S. employers and makes the visa far harder to access for:

• Small firms and startups
• Contract-based work
• Third-party placement models

Industry sources say the fee is the most immediate barrier. Some firms have paused hiring or shifted projects offshore. VisaVerge.com reports indications the administration has waived the fee for Indian nationals and recent graduates after diplomatic engagement, but for many employers the default rule still applies, already altering budgets and timelines.

Changes to stay length and green-card timing

The H-1B & L-1 Visa Reforms bill reintroduced in September 2025 proposes cutting the maximum H-1B stay from six years to three years, unless the worker secures approval of an immigrant petition (Form I-140) within that window.

• Employers would need to sponsor permanent residence far earlier.
• Filing schedules would tighten, at a time when processing queues and backlogs remain serious challenges.
• Indian professionals—who face long green-card waits due to per-country limits—could run out of time because of backlogs, not performance.

Practical steps employers are considering:

1. File PERM and Form I-140 earlier than before.
2. Prioritize candidates likely to get timely I-140 approvals.
3. Reassess job levels and wage offers to improve selection odds under wage-based ranking.

Wage-based selection and entry-level restrictions

Another proposed change would replace the random H-1B lottery with a weighted, wage-based selection that ranks petitions by pay levels and degree type. The bill would also block sponsorship for entry-level roles.

• Priority would go to U.S.-earned STEM advanced degrees and top wage levels.
• Entry-level candidates—often in Level I or II roles—would see dramatically reduced chances.
• Indian graduates without U.S. advanced STEM degrees or top pay offers are especially vulnerable.

Consequences:

• Employers may increase starting salaries for a few hires to meet higher wage tiers.
• Many early-career hires would be excluded from the pipeline that historically led to long-term careers.

Employer-level rules and enforcement

Lawmakers want tighter rules for employers with large H-1B/L-1 populations. Proposed measures include:

• Restrictions for firms where at least half the U.S. workforce holds these visas.
• New audits, heavier reporting duties, and larger penalties for misuse.
• Clearer prohibition against conducting H-1B-level work on visitor visas (ending “B-1 in lieu of H-1B”).
• Extended no-displacement protection: 90 → 180 days.

For Indian IT and consulting firms—whose U.S. models often rely on deploying specialists to client sites—these provisions hit the core business model, prompting shifts to offshore delivery, nearshoring, or other workarounds.

Political and oversight context

Congressional oversight has intensified as large tech firms conduct layoffs while continuing H-1B filings. Hearings and letters demand disclosure of:

• Hiring and layoff data
• Contractor usage
• Wage levels

Senior members from both parties emphasize enforcement and transparency. That scrutiny raises political costs for high-volume filings and is shaping the policy space regardless of whether any single bill becomes law.

Effects on Indian talent, students, and families

Indian professionals—both U.S.-educated and recruited from abroad—are placed under particular pressure due to:

• Their outsized share of H-1B recipients in tech and consulting.
• Long waiting times for employment-based permanent residence.
• Heavy reliance on entry-level sponsorship and third-party placements.

Key impacts:

• Early-career workers may lose traditional ladder paths (junior hire → prove skills → sponsored long-term).
• U.S.-educated STEM master’s/Ph.D. holders stand to gain (they receive priority in wage-based selection).
• Families face real risks: spouses’ employment gaps, children aging out of dependent benefits, and sudden relocation needs.

Universities and students are already responding:

• Counselors push STEM degree choices, internships, and employer networks that lead to higher-wage offers.
• Indian students may gravitate to U.S. STEM master’s/Ph.D. tracks to improve odds.

Employer responses and compliance planning

Firms are taking several steps to adapt:

• Reassessing wage offers and job levels to match proposed selection priorities.
• Designing earlier green-card sponsorship tracks to beat a potential three-year cap.
• Reducing U.S. bench sizes and expanding offshore/nearshore delivery models.
• Preparing for deeper audits and higher compliance costs.

Startups and mid-size firms face acute pain: a single $100,000 fee can equal a major portion of annual operating budget, discouraging hires unless the role is mission-critical.

Worker-level planning and practical advice

For workers and students eyeing H-1B, practical steps include:

• Focus on roles with clear sponsorship and higher pay bands.
• For students: consider U.S. STEM master’s or Ph.D. paths that improve wage/selection odds.
• Keep immigration documents current and track case timelines closely.
• Discuss early I-140 planning with employers if possible.

Note: Filing an Form I-140 will become critical under the proposed three-year cap; it requires careful job descriptions, evidence of qualifications, and employer intent to offer permanent employment.

Trade-offs and the political debate

Supporters argue the reforms:

• Reward top talent and reduce program abuse.
• Prioritize market-driven wages and stronger audits to curb exploitation and short-term contractor work.

Opponents warn:

• The U.S. economy needs a range of skills and experience levels.
• An “only top wage” approach ignores workforce pathways where many start junior and advance rapidly.
• Thousands of early-career workers and proven career tracks could be cut off.

Industry groups lobby to retain a six-year stay, preserve limited entry-level sponsorship, and ensure wage-ranking leaves room for promising early-career hires. Worker advocates push for stricter enforcement and penalties for firms that misuse visas while laying off U.S. workers.

Current status and what to watch

• The $100,000 entry fee is currently in effect for most applicants, with reported waivers for Indian nationals and recent graduates (VisaVerge.com).
• The three-year cap, wage-ranking, entry-level ban, tighter ratio rules, B-1 ban, and 180-day no-displacement window are proposals with bipartisan traction but are not yet law.
• Regulatory guidance, agency rulings, and Congressional action in the coming months will determine which elements survive and how employers respond.

Quick reference: Policy proposals taking shape in 2025

Bottom line

Policy signals are already reshaping behavior: employers are shifting hiring, students are changing course choices, and families are reconsidering long-term plans. The combination of a live $100,000 entry fee, the push for a three-year cap tied to I-140, wage-based selection, and an entry-level ban would make H-1B approvals fewer, costlier, and more selective. Indian talent—long a backbone of the H-1B program—would be affected first and most. Whether these changes improve the match of skills to jobs or cut off rising stars will be decided by Congress, the administration, and ensuing regulatory guidance.