Interview: Major overhaul means new scrutiny for H-1B visas
There has been so much focus on immigration under the current government administration that IT leaders may be confused on what is happening to the H-1B visa program and what the future holds for it.
For years, the H-1B program has been used to allow the hiring of skilled foreign workers to take U.S.-based jobs that go unfilled for whatever reason. A large percentage of H-1B applications have typically been for IT jobs.
The H-1B program has been extremely controversial for many years, especially over the number of workers that should be allowed each year.
Supporters of the program say it helps enable U.S. firms to attract the best and brightest tech workers no matter where they are from, and help reduce the skills gap that plagues IT. When an applied-for job concludes, many of those workers then stay in the U.S. for a few years and often create innovative tech startups.
Skeptics of the H-1B program say it enables tech firms to hire skilled foreign IT workers at reduced rates. Supposedly, H-1B hires should only be for job openings that were unsuccessful in attracting qualified U.S. applicants, but critics say H-1B hires deny those jobs to U.S. workers. U.S. Commerce Secretary Howard Lutnick recently called the current H-1B visa system a “scam.”
To get clarification on the status of the H-1B program and any recent changes made, Spiceworks spoke with immigration law expert Jimmy Lai, CEO at Lai & Turner Law Firm PLLC.
Spiceworks: What is your experience with the H-1B visa program?
Jimmy Lai: Our firm was established in 2022, and since then we have worked on multiple areas of law, with immigration being one of them. We have dealt with many H-1Bs cases.
Spiceworks: Have the requirements for corporations that wish to sponsor H-1B workers changed, and if so, how?
Lai: Yes. A person can fully own the company and sponsor an H-1B visa based on certain criteria. The H-1B visa has long been used by skilled workers in tech, healthcare, and engineering, but it required a U.S. employer sponsor. Entrepreneurs and business owners could not previously sponsor themselves.
Under a new rule initiated in 2025, startup founders and entrepreneurs can now self-petition for H-1B visas. This applies even if they own 100% of the business, provided the role qualifies as a specialty occupation – requiring a bachelor’s degree or higher in a related field. The goal is to attract top talent and boost U.S. startup and small business growth.
The new rule requires that the related job is a specialized role. You must show that work would focus mainly on specialty occupation duties, not just administrative tasks. You must also provide a detailed, realistic plan showing goals, strategies, and how acquired skills will drive the company’s success.
Regarding the employer–employee relationship, you must prove that the business operates independently – that is, it has employees, board members, or structures beyond your personal control. The sponsoring company must also be financially stability. You must provide tax returns, bank records, income, or investment evidence that the company can sustain operations and support the H-1B role.
These changes collectively broaden access, enhance fairness, and modernize how sponsors and candidates navigate the H-1B system.
Spiceworks: We understand there are new requirements for educational background. What does that involve?
Lai: There are changes in degree requirements. The new rule formalizes the need for an applicant’s degree to be clearly linked to the job’s duties. If it’s not obvious, the application must include transcripts, course descriptions, or syllabi to illustrate the connection. Employers must avoid overly broad degree requirements such as “liberal arts” and either show a direct match or explain why multiple fields could be relevant.
The “cap-gap” extension allowing F‑1 students on Optional Practical Training (OPT) to maintain status while awaiting H-1B approval has also been extended. OPT is a temporary employment program for foreign students in F-1 or M-1 status in the U.S. that allows them to work in a job directly related to their major for up to 12 months, with an additional 24-month extension available for eligible STEM (science, technology, engineering, and mathematics) graduates.
Instead of ending on October 1, it now continues until April 1 of the fiscal year or until the approved petition’s start date, whichever comes first. This reduces employment gaps during slow processing.
Employers must also “fully cooperate” with U.S. Citizenship and Immigration Services (USCIS) site visits. This includes granting access to business premises, records, and employees, and allowing interviews on-site or at a mutually agreed location. The rule underscores the importance of verifying inspectors’ credentials before providing access.
Spiceworks: Has the vetting process for H1B worker applicants changed, and if so, how?
Lai: Yes, there has been increased scrutiny. There has been a sharp uptick in Requests for Evidence (RFEs).
Starting in early 2025, there has been a surge in RFEs issued by USCIS. Some even say that the RFE rate nearly doubled from the prior year – rising from under 8% of cases to almost 15–16%. Even well-documented H-1B petitions are now frequently met with RFEs, demanding extra proof for eligibility. As an example of over-scrutiny, some RFEs are even asking a postdoctoral physicist to prove their PhD is relevant to a physics job.
The impacts of these changes include delays and costs. In early May 2025, the American Immigration Lawyers Association (AILA) issued guidance acknowledging the “uptick in RFEs” and advising that even duplicative RFE requests must be answered to avoid denial.
Spiceworks: Are there changes in the program that address concerns over abuse or fraud?
Lai: There has been enhanced fraud detection and compliance oversight. According to a July 2025 legal briefing, “USCIS has beefed up its ability to investigate fraud and ensure everyone is playing by the rules.”
Rather than random checks, site inspections are now data-driven and risk-targeted, focusing on petitions that exhibit potential red flags. Employers must be prepared with meticulous documentation – such as job descriptions, wage records, and work site information – and can expect surprise audits.
In its “restoring Integrity” efforts, the Department of Homeland Security has explicitly affirmed a return to strict vetting. In August 2025, USCIS stated it is “restoring robust screening and vetting processes to detect aliens seeking to defraud or abuse the immigration system.”
In practice, officers are empowered to ask for more evidence or background checks at any stage of an H-1B application, reflecting a zero-tolerance approach to fraud. Collecting more beneficiary information and biometrics is cited as necessary for “national security and to mitigate fraud.”
There are also tougher compliance expectations now. The onus is increasingly on employers to police H-1B compliance. New regulations in 2024–2025 place “a much stronger emphasis on employer compliance,” meaning companies must actively maintain and update records to prove H-1B workers are paid and employed as promised.
In short, this is more focused on checking fake jobs or falsified credentials and potential penalties for those who are attempting to defraud the system.
Spiceworks: How is the program ensuring that applicants are indeed entitled to apply?
Lai: Interview waivers have been rolled back, which represents a major change on the consular processing side. Beginning September 2, 2025, the U.S. Department of State now requires in-person interviews for most non-immigrant visa applicants, including H-1B workers. This is true even for renewals.
This policy shift ends many of the interview waivers that were previously allowed – for example, the “dropbox” renewal program or age-based waivers for minors and seniors. Nearly all applicants, regardless of age or visa type, must appear at a U.S. consulate for an interview under the new rule.
The rationale here is ‘Security First.’ Officials say this move is aimed at “tightening security” and strengthening the visa vetting process, requiring face-to-face interviews for H-1B and other visa applicants gives consular officers a direct chance to verify identities, detect inconsistencies, and deter fraudulent applications.
International students (holding an F-1 visa) and exchange scholars (with a J-1 visa) who often transition to H-1B or need to renew visas during school breaks are also hit by this change. Many colleges and universities worry that more onerous visa procedures will make the U.S. less attractive, as students fear getting stuck in visa backlogs.
There is also a Visa Integrity Fee from 2026. The fee applies to all non-immigrant visas, including H-1B, L-1, F-1, and B-1/B-2 visas. Reimbursements may be possible under specific conditions, such as complying with all visa terms, avoiding unauthorized employment, and departing the U.S. promptly or obtaining a lawful extension or adjustment of status.
Spiceworks: What other program changes should IT leaders know about?
Lai: Several recent broader developments are also noteworthy.
There is a new focus on good moral character scrutiny. For H‑1B holders pursuing green cards, USCIS has heightened the review of moral character during naturalization processes. You need to not just focus on having a clean record with tax compliance. USCIS is going to dive deep on how you are supporting the cultures of this country through volunteer work, family caregiving and ties, to your commitment to learning.
Legislative proposals such as the “Fairness for High‑Skilled Immigrants Act” aim to overhaul country caps, increase wages, and limit abuses though not yet enacted. This will increase the number of visas granted, increase minimum wage and proposes to adjust the wage every three years.
There is now a wage-based selection system. Entry-level applicants, often classified under Level I or II wage tiers, are likely to face significantly reduced odds compared to higher-wage offers. Employers may need to offer higher salaries to give their candidates a meaningful chance, which could disadvantage startups or non-profits with lower wage budgets.
The wage-based selection system would give preference to H-1B applicants whose employers offer higher salaries. This means jobs paying wages at the top levels would be chosen first, while entry-level or lower-paying roles would have less chance of being selected.
Supporters say this approach could make sure visas go to the “best and brightest” and reduce abuse of the program by ensuring fair pay. But on the other hand, it could make it much harder for students, recent graduates, startups, and nonprofits who often cannot offer the highest wages, to compete. As a result, the system may favor large, well-funded companies while limiting opportunities for talented workers who are just starting their careers or working in fields where wages are naturally lower.
Spiceworks: How do you believe these changes will impact the program going forward?
Lai: The H-1B program is at a crossroads while new rules expand access for entrepreneurs and modernize processes, heightened scrutiny, costs, and unpredictability risk driving talent elsewhere. As we weigh fraud prevention against global competitiveness, the real question is whether U.S. policy will continue to attract and retain the innovators who fuel our economy or push them to more welcoming markets.
The recent changes in the H-1B vetting process will not only affect today’s applicants but also have a long-term impact on America’s overall growth. H-1B professionals have consistently played a critical role in driving innovation, filling key gaps in tech, healthcare, and research, and contributing billions to the U.S. economy through taxes, consumer spending, and entrepreneurship.
If skilled workers begin choosing friendlier destinations like Canada or Australia, the ripple effect could be felt in fewer startups, slower innovation, and reduced global leadership in critical industries.
