U.S. to Tie H-1B Visa Renewals to Domestic Hiring Quotas Starting April 1, Sources Say

New Rule Requires One Domestic Hire Per Two Renewals

The Department of Homeland Security will require employers to hire one U.S. worker for every two H-1B visa renewals they submit starting April 1, according to two USCIS officials familiar with the rule. The policy, included in a final regulation set to publish in the Federal Register on Feb. 18, represents the most significant change to skilled-immigration rules since the 1990 Immigration Act, the officials said.

Under the rule, employers filing Form I-129 renewal petitions must document that they have hired at least one U.S. citizen or lawful permanent resident into a comparable position within the 12 months preceding each batch of two renewals, the officials said. The requirement applies to renewal petitions for workers in computer-related occupations, engineering, and accounting, which together account for roughly 287,000 of the 420,000 H-1B renewal petitions expected in fiscal year 2026.

USCIS estimated in a regulatory impact analysis that the rule would shift approximately 143,000 jobs to U.S. workers over five years and reduce wage displacement by $4.2 billion, according to one of the officials, who reviewed the analysis. The official said the agency expects to publish the 287-page rule on Feb. 18 with a 45-day lead time before the April 1 effective date.

A trade lawyer involved in the case said the mechanism was designed to survive court review by framing the hiring requirement as a labor-market test rather than a numerical cap. "Congress set the H-1B cap. DHS cannot change that," the lawyer said. "But it can attach conditions to renewals, and that is what this rule does."

Employers must submit a new attestation form, labeled ETA-9142B, with each renewal batch, the officials said. The form requires the employer to list the name, job title, and hire date of the U.S. worker, along with the wage rate and a statement that the position is comparable to the H-1B role. USCIS will reject any renewal batch that lacks a completed attestation, the officials said.

Trade Negotiations Drove Timeline

The rule was finalized after a Feb. 4 meeting at USCIS headquarters in Camp Springs, Maryland, that included officials from the Office of the U.S. Trade Representative and the Commerce Department, according to the two USCIS officials. The meeting produced a one-page memo, signed by the USCIS acting director, that directed staff to publish the rule before March 1, the officials said.

The urgency reflects pressure from reciprocal tariff negotiations with India, which sends the largest share of H-1B workers to the United States, according to a congressional aide on the House Judiciary Committee who was briefed on the negotiations. The aide said U.S. negotiators want to use the hiring requirement as leverage to secure greater access for American technology and financial-services firms in the Indian market.

The aide said the administration briefed a small group of Republican committee staff on Feb. 5 and told them the rule would be paired with a separate Commerce Department action on data-localization rules. The combined package is intended to reduce the U.S. trade deficit in services by $7.8 billion annually by 2028, the aide said.

Two immigration attorneys who have seen drafts of the rule said it includes exemptions for employers with fewer than 50 employees and for workers earning above $150,000 annually. The attorneys, who represent technology companies and spoke on condition of anonymity because their clients are still reviewing the text, said the exemption thresholds were added in late January after lobbying by startup trade groups.

The U.S. Chamber of Commerce received a draft summary on Feb. 3 and circulated an internal alert warning members to prepare compliance records, according to a person who viewed the alert. The chamber declined to comment.

Employers Brace for April Rollout

Large technology firms and outsourcing companies are preparing compliance systems ahead of the April 1 deadline, according to one of the USCIS officials. The official said the agency plans to release a revised Form I-129 on March 1 and hold three public webinars in March for employers and attorneys.

The trade lawyer said the rule is likely to face immediate litigation from industry groups and possibly from foreign governments through the World Trade Organization dispute process. "The WTO argument is that this is a disguised restriction on trade in services," the lawyer said. "That will take years, but the preliminary injunction fight will start within days of publication."

A coalition that includes the U.S. Chamber of Commerce and the National Association of Manufacturers is expected to file a lawsuit in the U.S. District Court for the Northern District of Texas as soon as the rule publishes, according to a person familiar with the group's planning. The person said the complaint will argue that the Labor Department, not USCIS, has authority to set hiring conditions.

USCIS plans to hire 240 additional adjudicators to handle the expected surge in requests for evidence and site visits, one of the officials said. The official said the agency has requested $38 million in supplemental funding from the Office of Management and Budget to cover the hiring and training costs.

Watch for the Federal Register notice on Feb. 18, formal statements from Indian trade officials, and the first court filing, which sources expect by Feb. 20. Major business wire services and immigration law publications usually confirm USCIS rule changes within two to three days of publication.