Major H-1B visa revamp from Jan 17: Here's how Indian techies can benefit

Come January 17, 2025, the United States will implement major reforms to its H-1B visa programme, according to the US Department of Homeland Security (DHS). These updates redefine eligibility criteria, introduce new measures to ensure transparency, and aim to resolve longstanding concerns. With Indian professionals making up the majority of H-1B visa holders—72.3% of the 386,000 issued in 2023 — the reforms are likely to have a broad impact.

 

H-1B programme revamp

 

“These improvements to the programme provide employers with greater flexibility to hire global talent, boost our economic competitiveness, and allow highly skilled workers to continue advancing American innovation,” said Alejandro N Mayorkas, Secretary of Homeland Security.

 

Key changes include:

 

Measures against lottery abuse: Stricter rules will address organisations submitting bulk applications in the lottery system, promoting fairness. Piyush Gupta, vice president for India and the Middle East at CanAm Enterprises, told Business Standard, “Many firms are hesitant to engage with the unpredictable lottery process. Families are also looking for more stable options, such as the EB-5 programme.”

 

Revised criteria for cap-exempt organisations: Organisations primarily engaged in research will now qualify as cap-exempt, replacing the earlier, less specific definition.

 

Simplified transition for F-1 visa holders: Students on F-1 visas will face fewer disruptions when shifting to H-1B status.

 

Faster visa processing: USCIS has committed to expediting applications for H-1B extensions to ease the burden on employers and workers.

 

Flexibility for employers: Businesses can hire H-1B workers based on documented needs, allowing more adaptable workforce planning.

 

Eligibility for entrepreneurs: Individuals with a controlling interest in their sponsoring organisation can qualify under stricter conditions.

 

Stronger safeguards: Enhanced inspections, penalties for non-compliance, and stricter checks will be introduced to prevent misuse.

 

Updated petition form: A revised Form I-129 will become mandatory from January 17, 2025.

 

Year-round cap exemptions: Cap-exempt organisations, such as universities and research bodies, can now submit petitions throughout the year without numerical limitations.

 

H-1B visa renewal process

 

Another positive change for Indian techies in the US is the introduction of a domestic renewal process for H-1B visa holders. Currently, visa holders must travel to their home country for renewals, which involves in-person interviews at US embassies or consulates. The pandemic exposed vulnerabilities in this system, with delays and backlogs causing significant disruptions.

 

The US Department of State successfully ran a pilot programme in 2024, allowing select H-1B visa holders to renew their visas without leaving the country. Following the pilot, the department plans to roll out a formal domestic renewal process later this year.

 

“As it stands today, H-1B visa holders must travel to their home country to renew their visas. For many, this process has been fraught with delays, logistical challenges, and, quite often, uncertainty regarding the timeline,” Varun Singh, MD of XIPHIAS Immigration told Business Standard. The new system is expected to alleviate these challenges.

 

H-1B visa holders have played a crucial role in driving the US economy, particularly in technology and healthcare. Between 2010 and 2019, over 3,300 H-1B professionals contributed to the development of Covid-19 vaccines at companies like Moderna and Johnson & Johnson.

 

The current annual cap for H-1B visas stands at 65,000, with an additional 20,000 reserved for those holding advanced degrees from US institutions. “The H-1B programme was created by Congress in 1990, and there's no question it needed to be modernised to support our nation's growing economy,” said USCIS Director Ur M Jaddou.