US immigration: Three policy shifts in two months that Indian professionals should know about

The US government has enacted a series of significant immigration policy changes over the past two months, primarily targeting work authorization, visa costs, and the path to citizenship. These three major shifts—the abrupt end of automatic work permit extensions, a massive increase in the H-1B visa application fee, and a tougher civics test for naturalization—are expected to create new hurdles and anxieties for the large population of Indian students, professionals, and Green Card holders in the country.

Policy details: EADs, H-1B Fees, and naturalization

The recent policy changes reflect a broader push by the US administration to curb immigration and prioritize “American workers”.

End of automatic Employment Authorization Document (EAD) extensions

Effective Thursday, October 30, 2025, the Department of Homeland Security (DHS) discontinued the automatic renewal of certain EADs.

• What changed: Migrants who file to renew their EAD on or after this date will no longer receive an automatic extension to their work permit while the renewal application is pending. Previously, an automatic extension of up to 540 days was granted.
• Who is affected: This critically impacts non-immigrants who rely on an EAD to work, including spouses of H-1B visa holders (H-4 dependents) and F-1 students on Optional Practical Training (OPT).
• The rationale: DHS stated the change is intended to strengthen vetting, deter fraud, and ensure more frequent background checks.

H-1B visa fee hike to $100,000

On September 19, 2025, a proclamation was signed that imposes a steep annual fee of $100,000 for H-1B visas.

• Who pays the fee: The fee must be paid by the employer, not the visa applicant.
• Applicability: The fee applies to new H-1B petitions filed for beneficiaries who are outside the United States and do not hold a valid H-1B visa, effective September 21, 2025.
• Exemptions: It does not apply to visa holders already in the US (such as those already in H-1B status or filing a change-of-status from F-1 to H-1B).
• Impact: This massive increase places a heavy financial burden on sponsoring companies, particularly those in the tech sector that rely on H-1B workers, leading one major retail giant to pause hiring for H-1B candidates.

Tougher civics test for US citizenship

Effective October 20, 2025, the US Citizenship and Immigration Services (USCIS) introduced a new, more difficult civics test for naturalization applicants.

• What changed: Applicants must now correctly answer 12 questions out of 20 (drawn from a larger pool of 128 questions) to pass, a significant jump from the previous requirement of 6 correct answers out of 10.
• Consequence: Failure on the second attempt will result in the denial of the citizenship application.
• Other scrutiny: USCIS officers are also placing a greater emphasis on evaluating an applicant’s “good moral character”.

What this means for skilled workers

The combined effect of these changes is a significant increase in financial risk, job uncertainty, and administrative burden for Indian professionals and students.

• Job loss risk: For H-4 spouses and F-1 OPT students, the end of the automatic EAD extension means that if a renewal takes longer than their current EAD’s expiry date (which can be 7 to 10 months to process), they must stop working immediately. This translates to potential job loss, loss of income for families, and a disruption to the career path for recent graduates.
• Path to H-1B: The sudden unpredictability further complicates the established “study-to-work” path (F-1 to OPT to H-1B) for Indian students, who constitute a large number of the US’s F-1 and H-1B population.
• Citizenship hurdles: Green Card holders, of whom 49,700 were Indian nationals naturalized in the last fiscal year, now face a more challenging requirement to become a US citizen, potentially prolonging their final step in the immigration process.

What it means for employers

These immigration changes directly impact the hiring strategies and compliance costs of companies that rely on international talent, particularly in the US tech sector.

• Massive cost increase for new hires: The $100,000 H-1B fee creates a prohibitive financial barrier for companies seeking to hire top international talent directly from outside the US, potentially forcing them to reserve the visa only for the most senior or critical roles.
• Hiring freezes: The immediate corporate response to the fee hike, such as the reported hiring pause by a major retail giant, signals growing corporate unease and a potential contraction in the US labor market for foreign workers.
• Employment disruption: Companies that employ H-4 spouses or OPT students face administrative risk and employee turnover due to the uncertainty of EAD processing times. They must manage potential gaps in work authorization and the resulting job loss for valuable team members.

Mitigating US hiring risk with global solutions

The rising costs and uncertainty in the US highlight the strategic advantage of hiring skilled workers remotely from outside the US.

• Access Indian talent directly: Instead of navigating the $100,000 fee and complex EAD issues, US companies can hire the same high-skilled Indian professionals—who represent over 70% of H-1B recipients—as full-time, compliant employees in India or other locations using an Employer of Record (EOR) solution.
• Seamless global hiring with Multiplier: An EOR like Multiplier handles the legal complexities of global employment, including:
  • Local compliance: Ensures the employment contract, payroll, and benefits adhere to the labor laws of the remote worker’s country (e.g., India), bypassing US visa, EAD, and H-1B fee challenges.
  • Payroll & benefits: Manages global payroll and ensures the employee receives competitive, localized benefits.
  • Risk-free expansion: Allows the US company to tap into global talent pools in 150+ countries without establishing local legal entities, turning global talent into a competitive advantage.

Conclusion

The new wave of US immigration restrictions, targeting key work permits, visa costs, and the path to citizenship, presents significant challenges for Indian nationals and US employers. As the US creates a tougher, more expensive environment for foreign workers, businesses must look for strategic alternatives.

Multiplier’s Employer of Record (EOR) solution offers a reliable, cost-effective pathway to access the world’s best talent compliantly, turning immigration barriers into opportunities for seamless global team expansion. Book a demo today!

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