The Department of Homeland Security (DHS) will roll out its long-anticipated H-1B Modernization Final Rule on January 17, introducing major changes aimed at streamlining the hiring process for highly skilled foreign workers while enhancing program oversight. These updates are expected to address workforce demands, improve efficiency, and provide greater clarity for employers navigating the complex visa system.
Employers petitioning for H-1B workers must use the newly updated Form I-129, which becomes mandatory on the same day. To help employers adapt, a preview of the revised form is already available on the US Citizenship and Immigration Services (USCIS) website.
Key changes include revised specialty occupation criteria that better link the required degree to job duties, expanded flexibility for nonprofit and governmental research entities exempt from the annual cap, and streamlined processes for F-1 visa holders transitioning to H-1B status. The rule also simplifies processing for previously approved H-1B visa holders and allows individuals with a controlling interest in their petitioning organization to qualify, provided specific conditions are met.
To ensure program integrity, the rule formalizes USCIS’ authority to conduct inspections and impose penalties for violations. USCIS Director Ur M. Jaddou noted, “The changes made in today’s final rule will ensure that US employers can hire the highly skilled workers they need to grow and innovate while enhancing the integrity of the program.”
Despite these updates, the H-1B program will continue to be subject to an annual cap, with demand far exceeding supply. The USCIS will open cap registrations for the fiscal year 2026 in March 2025, maintaining the lottery-based selection process.