Stricter H-1B visa rules, OPT Termination Will Make US Less Attractive for Indian and South Asian Students

It is not just Indian professionals, but this bill could result in a further drop in Indian students - the largest foreign student cohort in the US - showing interest in higher studies in the US. It is not just the H-1B visa by itself, but the proposal for ending the OPT which prospective students would be paying attention to. OPT helps students in drawing employment, gaining experience and potentially transferring to H-1B Visa status. In 2024-2025, over 140,000 Indian students were participating in the OPT program.

Tridivesh Singh Maini May 04, 2026
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The international higher education landscape has witnessed some important changes in recent years. It is not just the US, but other countries in the Anglosphere including UK, Australia and Canada which have sought to check the inflow of international students (these four countries have often been referred to as the ‘big 4’ when it comes to international higher education. The measures taken by these countries include: the introduction of stricter student visa rules, raising eligibility criteria and imposition of conditionalities on post study work visas.

 While these countries have immense advantages and remain the primary choice for several students, others have begun to look at alternative destinations.

Some of the countries which have emerged as popular choices for Indian students in recent years are Germany, Ireland, Spain, New Zealand and the UAE. One of the key factors which drives student choices is the career prospects in that country and the country’s approach towards immigration.  

Indian students have accounted for a significant percentage of the international student community in US, UK, Australia and Canada in recent years. August 2025 witnessed a 45% drop in enrolment of Indian students in US universities.

US Bill Pushing for Massive Changes 

A new US bill ‘End H-1B Visa Abuse Act of 2026’ seeks to introduce changes to the existing H-1B visa programme but also ending the Optional Practical Training (OPT) program – a post-study work visa which permits international students on an F-1 student visa to work for 12 months post the completion of their degree.

The H-1B is a non-immigrant US visa that permits US companies to bring skilled workers from several parts of the world. In 2025, Indian nationals accounted for over 70% of the H-1B Visas issued.

This bill proposed by Eli Crane, a Republican representative from Arizona, includes amongst other recommendations:

1)   A temporary freeze on H1B visas for three years

2)   Reducing the annual cap to 25,000

Other important changes suggested by the bill include:

(1) Preventing dependants from accompanying H-1B holders.

(2) Ending the Optional Practical Training (OPT) program.

(3)  Barring H-1B visa holders from applying for permanent residency.

(4) Individuals need to leave the US before changing visa status.

In September 2025, US President Donald Trump signed a proclamation imposing a $100,000 annual fees on H-1B visas. Trump while commenting on this decision said: "Everyone's going to be happy. And we're going to be able to keep people in our country that are going to be very productive people. And in many cases, these companies are going to pay a lot of money for that, and they're very happy about it."

Differences between MAGA camp and Musk 

The End H-1B Visa Abuse Act of 2026 bill has drawn support from several Republican lawmakers and very much in sync with the thrust of Trump’s Making America Great Again (MAGA) support base which seeks to give priority to American workers. The bill is likely to face opposition from policy makers. Earlier, there were heated exchanges between Elon Musk, CEO of Tesla, who was part of the Trump administration and headed the The Department of Government Efficiency (DOGE) till May 2025, and Making America Great Again (MAGA) supporters including Steve Bannon, a former Trump advisor.

Indian professionals who have benefited from the H-1B visa will be impacted by any major changes to the existing H-1B Visa programme.

It is not just Indian professionals, but this bill could result in a further drop in Indian students - the largest foreign student cohort in the US - showing interest in higher studies in the US. It is not just the H-1B visa by itself, but the proposal for ending the OPT which prospective students would be paying attention to. OPT helps students in drawing employment, gaining experience and potentially transferring to H-1B Visa status. In 2024-2025, over 140,000 Indian students were participating in the OPT program.

Indian Student Drop Will Affect US

The proposed End H-1B Visa Abuse Act of 2026 is likely to face opposition from several quarters – including US businesses and policy makers. While there has been talk of changes to the H-1B visa regime, any changes to the OPT program will make the US less attractive for Indian and South Asian students (recent years have already witnessed a drop in the enrolment of Chinese students in US universities).

 

While Indian students will have to look at alternatives, a drop in the inflow of Indian students will also impact the US economy, since the Indian student community has been contributing not just towards the creation of direct and indirect employment but also towards innovation and R&D.

(The writer is a New Delhi-based policy analyst associated with OP Jindal Global University, Sonipat, India. Views are personal. He can be reached at tsmaini@jgu.edu.in)

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