H-1B/H-2 Reforms: Digital Applications, Compliance, and 2025 Impacts

Eleven months after the United States Department of Homeland Security put sweeping H‑1B and H‑2 visa reforms into force on January 17, 2025, employers and foreign workers are reporting a split reality: some steps are faster online, but the stakes are higher, paperwork is heavier, and wait times are stretching. The package, announced December 18, 2024 through the H‑1B Modernization Final Rule and an H‑2 Final Rule, also made a revised Form I‑129, Petition for a Nonimmigrant Worker mandatory the same day. DHS framed the changes as a way to modernize filings, protect workers, and tighten program integrity during labor shortages in tech, hospitality, and agriculture. Now, as the first full hiring cycle under the new rules closes, lawyers say small mistakes trigger rejections without warning for many companies.

Overall demand and filings under the new rules

The reforms touch a system that still draws huge demand. In fiscal year 2025, USCIS received 470,342 H‑1B registrations, and the agency selected 29%, numbers that reflect both intense competition and a sharp 38.6% drop from fiscal year 2024 after anti‑fraud measures.

Employers say the new Form I‑129 (edition 01/17/25, replacing 04/01/24) has become the center of the crackdown. At 38 pages, it asks for tighter links between the job, the worker’s degree, the wage, and the exact work location, and it presses companies to show real control when staff work at client sites or move between locations. USCIS also ended any grace period: petitions filed after January 17 with the older form were rejected, even if the facts were strong and fees were paid.

Timing, RFEs, and processing realities

The most common complaint has been time. Employers report standard H‑1B petitions taking 8 to 12 months, far longer than the 2 to 6 months many planned around. Meanwhile, premium processing, which is supposed to bring a decision in 15 business days for an added fee, is strained by volume.

Requests for evidence (RFEs) are rising as officers ask for detailed proof of:

• day‑to‑day supervision
• project schedules
• wage and benefit terms by worksite

Some employers and counsel now expect RFE rates of 60% or more, forcing companies to keep roles open longer or delay onboarding. For workers, that can mean months in limbo, with leases, plans, and families on hold.

Changes that benefit petitioners

DHS did build in some benefits many petitioners sought:

• Digital platform: USCIS rolled out a system to submit and track cases online.
• Deference for extensions: USCIS revived a deference approach for extensions where the same employer and worker are involved and there are no material changes, reducing repeat reviews in some files.
• Degree‑duty linkage: Updated H‑1B rules tie qualifying degrees more directly to job duties, which can help workers in newer or interdisciplinary fields.
• Entrepreneur provisions: Entrepreneurs can qualify in narrower circumstances, including founders with ownership stakes, provided the petition shows the company can direct the work.
• F‑1 cap‑gap extension: For F‑1 students, cap‑gap protections now extend work authorization until April 1 of the following fiscal year, or the petition’s approval date—an improvement schools had sought.

H‑2 program focus: protections and rules for seasonal work

In the H‑2 programs, reforms emphasize worker protections and clearer rules for short‑term jobs rather than faster filings. Notable fiscal year 2025 results and rules:

• 64,716 supplemental H‑2B visas issued, including 20,000 reserved for nationals of El Salvador, Guatemala, and Haiti to fill gaps.
• New prohibitions on recruitment fees and added whistleblower protections.
• Increased penalties for violations.
• New grace periods:
  • 10 days before a job start
  • 30 days after job completion
  • 60 days for job loss and portability
• Standardized 60‑day “interrupted stay” reset tied to the three‑year limit.

Growers and managers say the extra time helps keep crews stable, but enforcement has also increased.

Compliance, site visits, and documentation burdens

The integrity push affecting H‑1B also shows up in H‑2 compliance audits, with employers reporting more frequent reviews of payroll, housing, and recruitment records.

Key compliance changes and effects:

• Stronger site‑visit authority at worksites, client locations, or even meeting places.
• Third‑party placements now require detailed itineraries and client contracts that spell out supervision.
• Labor Condition Applications (LCAs) must match the petition on wage level, duties, and each location.
• Small mismatches—an outdated work address or a missing end‑client letter—can trigger an RFE or denial that is hard to reverse on appeal, even when the hire is time‑sensitive.

Late‑2025 developments: a major new fee

A significant jolt arrived late in the year. A presidential action dated September 21, 2025, requires a $100,000 payment per new H‑1B petition, with filings before 12:01 a.m. EDT exempted. Employers say this will reshape fiscal year 2026 hiring plans.

The source material cites one firm that secured 1,700 H‑1Bs while cutting 2,400 U.S. workers, an example that has fueled political arguments that the program undercuts domestic labor. For many companies, the new charge comes on top of rising legal costs driven by the longer Form I‑129 and the higher risk of RFEs. Business groups warn the reforms could price smaller employers out of the market for specialized talent. Workers worry it will narrow options to change jobs quickly.

Entry restrictions and legislative proposals for 2026

Another policy shift is set to hit at the start of 2026. DHS announced expanded entry restrictions on December 16, 2025, effective January 1, 2026, barring certain nationalities from visa issuance and admission. Employers say this could break recruitment pipelines for H‑1B‑heavy teams and some H‑2 seasonal rosters.

At the same time, lawmakers are debating the H‑1B and L‑1 Visa Reform Act of 2025, a bill that would:

• change selection toward STEM and higher‑wage roles
• add a 180‑day non‑displacement period for U.S. workers
• require audits of 1% of employers overall, and all firms with more than 15% H‑1B staff among companies with over 100 employees
• authorize Department of Labor investigations
• hire 200 or more staff for enforcement to tighten compliance

Practical guidance and USCIS resources

According to analysis by VisaVerge.com, the revised Form I‑129 has become less a paperwork swap and more a test of whether a job offer can survive close review of control, wage, and location.

Practical filing tips and reminders:

• Double‑check that every attachment matches the petition (LCAs, client letters, itineraries).
• Keep copies of key documents—offer letters, transcripts, and updated work addresses—so employers can answer RFE questions quickly.
• USCIS has been rejecting post‑January 17 submissions that use the old edition of the form.
• RFEs can extend already long processing.

USCIS posts the current form and filing instructions on its official page: Form I-129, Petition for a Nonimmigrant Worker page.

The source material did not name companies beyond the H‑1B example or identify workers facing delays.

HR and worker impacts: a shift to risk management

For HR teams, the practical effect has been a shift from routine filing to constant risk management, with:

• heavier records for off‑site work
• more internal audits
• higher budgets for legal review

For many foreign professionals, the longer timelines mean making major life choices without clear dates, even though portability rules allow them to start with a new employer once a valid petition is filed.

In the seasonal H‑2 space, added grace periods can reduce sudden departures, but stronger enforcement can expose employers who once treated recruitment fees and housing rules loosely.

Overall takeaway: DHS says the reforms aim to protect workers and preserve program credibility, yet the mix of delays, new fees, and restrictions is testing that promise as the first year ends and 2026 begins.