Impact of New H-1B Visa Regulations on Indian Tech Professionals and Green Card Backlog, TechGig

The H-1B visa pathway for Indian professionals aiming for US employment and long-term career opportunities is becoming increasingly challenging due to frequent policy changes and growing restrictions. While Indians still form the largest cohort of H-1B recipients, particularly in engineering and technology, the process is now more selective and compliance-intensive.Xiao Wang, CEO of Boundless Immigration, highlighted key changes, including a proposed $100,000 application fee that discouraged external applications from India in the initial cap season. Although this fee was recently struck down by a US court, an appeal by the Trump administration is likely. The shift has notably impacted India-based IT consulting firms, whose business model relies on sending professionals to the US.

The USCIS implemented a wage-weighted lottery for the March 2026 cap season, favouring higher-paid workers. Boundless client data shows Level III (senior) candidates had a 68% selection rate, compared to 40% for Level I (entry-level) candidates. This disparity significantly affects Indian professionals entering their first jobs after US master’s programs.

Additionally, EB-1A approval rates sharply declined to 41.7% in Q2 FY2026 from 66.9% in FY2025, disproportionately impacting Indian applicants who constitute the largest filer population in this category.

Risks for Existing H-1B Holders

Existing H-1B holders face heightened risks, particularly concerning the 60-day grace period after layoffs. USCIS has archived guidance allowing terminated workers to use B-2 visas for job searches, and a May 2026 memo treats in-country green card adjustment as extraordinary discretionary relief.The Trump administration is also considering extending additional H-1B and L-1 fees to extensions for certain large employers, potentially affecting the 71% of H-1B approvals for continuing employment, with Indians accounting for 78% of extensions.

Furthermore, the Department of Homeland Security is advancing a proposal to eliminate the 60-day grace period, which would create a tighter immigration deadline and increase dependence on sponsoring employers. K Edward Raleigh, Partner at Fragomen, noted that finding a new sponsor within the available period depends heavily on an individual’s skills, seniority, and industry.

Long Green Card Backlogs and Alternative Destinations

For Indian H-1B workers, the deeper issue remains the multi-decade green card backlog. USCIS I-140 data indicates India’s EB-2 pending inventory at 351,142 petitions and EB-3 at 105,588.

This means losing a job during the H-1B window is a sharper cliff for Indian nationals than for most other nationalities. Consequently, many Indian mid-career H-1B workers are exploring self-petition options like O-1, EB-2 NIW, and EB-1A as contingency plans.

Despite these uncertainties, demand for H-1B visas continues to outpace available slots, with registrations exceeding slots by roughly five to one. However, the changing landscape is influencing where the next generation of Indian technologists choose to build careers.

Countries like Canada, the UK, Australia, and Germany are attracting more Indian talent. US tech companies such as Amazon, Meta, Microsoft, and Google now hold the top four H-1B employer slots for new approvals, a shift from Indian IT firms that historically dominated these positions.

Experts recommend Indian professionals focus on building specialised skills and proactive immigration planning, accepting that the H-1B may involve many years in temporary status.