The registration period for H-1B visas for the 2026 financial year will open in a month. Before that, the US Department of Homeland Security (DHS) introduced a new set of rules that will reshape how the programme works. The final rule, which took effect on January 17, 2025, changes the way applications are processed, redefines eligibility, and gives more flexibility to both employers and foreign workers.
Note: The H-1B visa is widely used by Indian IT professionals and allows US companies to hire foreign workers for specialised roles requiring technical or theoretical expertise.
Take a look at the changes the US government has introduced:
Redefining 'specialty occupation'
One of the biggest changes is a new definition of what qualifies as a “specialty occupation.” Previously, applicants needed a bachelor’s degree in a specific field. The updated rule makes it clear that while a degree must be directly related to the job, a general degree without further specialisation is not enough.
Employers can still list multiple acceptable fields of study, but each must have a clear link to the job’s duties. The aim is to reduce uncertainty in the application process and make it clearer when a role qualifies for an H-1B visa.
Tougher enforcement and worksite inspections
DHS has stepped up its enforcement measures to prevent fraud and misuse of the programme. The US Citizenship and Immigration Services (USCIS) Fraud Detection and National Security (FDNS) unit will now conduct more frequent worksite inspections. These checks can happen at any location where an H-1B worker is employed, including third-party client sites.
Employers who refuse to allow these inspections could have their petitions denied or revoked. To avoid issues, companies must keep detailed records, have a responsible person on site who can answer basic questions, and ensure full compliance with H-1B rules.
Returning to the deference policy
The rule also reinstates a policy that was removed under the Trump administration. USCIS officers are now instructed to defer to prior approvals when deciding on H-1B extension requests—unless there has been a material change, a mistake in the previous approval, or new adverse information.
This means that if a worker’s job, employer, and circumstances remain the same, their extension request is more likely to be approved without extensive re-evaluation. However, employers must still provide all required documentation, and USCIS retains the right to review each case individually.
Proving maintenance of status
Employers seeking to extend or amend an H-1B worker’s stay must now submit proof that the worker has maintained their previous visa status. This rule also applies to H-4 dependents, who must show they remained eligible before applying for an extension.
More opportunities for entrepreneurs
The changes bring new flexibility for foreign entrepreneurs looking to start businesses in the US. Under the updated rule, individuals with a controlling interest in a US company can now qualify for H-1B status, provided they meet all other requirements and spend most of their time performing duties that count as a specialty occupation.
If an H-1B beneficiary owns more than 50% of a company or has majority voting rights, they can still qualify, as long as they primarily carry out work linked to their specialty occupation rather than just managing the business.
Confirming genuine job offers
The final rule reaffirms that employers must prove they have a genuine job offer for an H-1B applicant. While USCIS may still request contracts or other evidence, the rule clarifies that formal itineraries are no longer needed to demonstrate a valid employer-employee relationship.
USCIS also acknowledged that contracts do not always specify educational requirements, so they will not always be the deciding factor in whether a job qualifies as a specialty occupation.
Extended work authorisation for F-1 students
F-1 students moving to H-1B status will benefit from longer “cap-gap” extensions, reducing disruptions in work authorisation. Previously, the automatic extension lasted until September 30—the last day before the new fiscal year starts on October 1. Under the new rule, this extension can now run until April 1 of the fiscal year.
This means students working under Optional Practical Training (OPT) will have more continuity, reducing the risk of employment gaps while their H-1B application is pending.
Benefits for Indian applicants and employers
For applicants, including Indians, the reform simplifies the process and reduces competition driven by bulk submissions from multiple employers. Employers, meanwhile, benefit from a system that evaluates registrations based on merit and legitimacy, fostering a fair environment for all.
With the beneficiary-focused system already yielding positive results, USCIS plans to monitor and refine the process further as the FY 2026 registration period approaches.