H-1B extension rule targets Indian workers: 79% of renewals at risk, USCIS data shows
Synopsis
Key Takeaways
A Trump administration proposal to strip US immigration officers of their obligation to defer to prior approvals when H-1B and L-1 visa holders seek extensions would fall disproportionately on Indian professionals, who account for nearly four in five H-1B continuing-employment approvals, according to data from US Citizenship and Immigration Services (USCIS). The public comment window on the rule closes on 13 November 2026.
What the Proposed Rule Would Change
The Department of Homeland Security (DHS) published the proposal — formally titled 'Removing Deference to Prior USCIS Determinations of Eligibility' — in the Federal Register on 14 October 2026 under DHS Docket No. USCIS-2026-0529. Comments are accepted only through regulations.gov.
The rule targets 8 CFR 214.1(c)(5), which currently requires officers to generally defer to a prior approval involving the same parties and facts, unless there was a material error, a material change, or new adverse information. If removed, officers reviewing extension petitions would start from a blank slate rather than from a presumption of continued eligibility. The change would apply to all Form I-129 petitions, covering H-1B, L-1, O-1, TN, E and P visa categories. The current regulation stays in force until any final rule takes effect.
Scale of Impact on Indian Workers
USCIS approved approximately 399,000 H-1B petitions in fiscal year 2024, of which 71% were for beneficiaries born in India, according to its annual report to Congress. Of roughly 258,000 approvals granted for continuing employment — the category that covers extensions — about 203,000, or 79%, went to Indian-born workers. This concentration means any change to extension processing bears most heavily on the Indian professional diaspora in the United States.
H-1B petitions account for more than 75% of all Form I-129 filings, DHS noted. The department estimated that approximately 208,000 petitions per year would be directly affected by the proposed change.
Processing Delays and Added Costs
Removing deference is projected to raise the rate of Requests for Evidence (RFEs) by about 3 percentage points, translating to roughly 6,000 additional requests annually, according to DHS estimates in the notice. Petitions that receive such requests took an average of 64 days longer to process over the last four fiscal years. The department put the total added cost to petitioners at approximately $134,000 per year.
Notably, the department itself acknowledged in the notice that employers and workers 'may have made career and/or personal plans in the United States based on the assumption that they would be able to continue their employment and legal presence in the United States.'
DHS Justification: Fraud and Non-Compliance Data
DHS argued that the existing deference regulation 'effectively shift the burden from the petitioner to the USCIS officer to justify departing from a prior approval.' To support its case, the department cited site-visit data showing combined non-compliance and fraud at about 22% of H-1B extension sites visited in fiscal years 2022 to 2025 — when deference was in place — compared with roughly 17% in fiscal years 2018 to 2020, when it was not.
The department was careful to clarify that the proposal 'would not prohibit USCIS officers from considering a prior approval where relevant,' but would remove the requirement that officers begin from a position of deference to that approval.
A Policy That Has Shifted Four Times Since 2004
The deference policy has been a moving target. It was first introduced in 2004, rescinded in 2017 during the first Trump term, reinstated in 2021 under the Biden administration, and codified into regulation in 2024. The latest proposal would effectively reverse the most recent codification. This is at least the fourth major reversal on the same provision in roughly two decades, underscoring how deeply the policy has become tied to the broader ideological battle over high-skilled immigration in the United States.
With the comment deadline on 13 November 2026 approaching, immigration attorneys and employer associations are expected to file responses in large numbers. Any final rule will be published separately, with the current regulation remaining operative in the interim.