How the end of H-1B exemptions is throwing international scholars into visa limbo
Thousands of international scholars and students in the US face an uncertain future following a proposed change to the H-1B visa programme. A federal rule under review could eliminate the exemption that currently allows US universities and nonprofit research institutions to hire foreign workers without being subject to the annual H-1B visa cap.
For years, this exemption served as a critical pathway for international students—especially those on F-1 student visas transitioning into academic roles—to continue working and contributing to US institutions without entering the oversubscribed H-1B lottery system.
Proposal could end cap-exempt hiring for universities
Under the existing H-1B visa framework, universities and certain nonprofit research institutions are allowed to sponsor foreign nationals year-round.
These institutions are not subject to the annual numerical limit of 85,000 visas that applies to private sector employers. This exemption enabled them to employ international graduates for positions such as postdoctoral researchers, lecturers, and teaching assistants.
The new rule, currently under federal review, proposes removing this cap exemption. If enacted, it would mean all H-1B petitions—including those from universities—would be pooled into the same capped system.
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Victoria Principal Is Almost 75, See Her Now
Reportingly
Undo
by Taboola
by Taboola
According to official data, in 2025 alone, over 780,000 H-1B applications were filed, making the odds of selection through the lottery extremely low.
A longstanding route from F-1 to H-1B at risk
The academic route followed a relatively stable pathway: students entered on an F-1 visa, took advantage of Optional Practical Training (OPT) post-graduation, and then transitioned to a cap-exempt H-1B position at a university or research institute.
Without the exemption, students graduating with advanced degrees, including PhDs from top US universities, may be forced to leave the country if their H-1B application is not selected in the cap-bound lottery.
The proposed change may significantly impact those holding postdoctoral and temporary academic positions. These roles are often short-term and require rapid visa processing, which may become unfeasible under the cap-limited system.
Indian students likely to be the most affected
According to official H-1B data, Indian nationals account for over 70% of all H-1B petitions and represent the largest international student demographic in graduate-level STEM programmes in the US. Many of these students fund their education through substantial loans with the expectation of gaining post-study employment in the country.
If the cap exemption is removed, a job offer from a university will no longer guarantee the right to stay or work.
Students could be forced to leave the US despite securing academic positions. The financial risk increases substantially if students are unable to remain and earn in the US to repay education loans.
Potential impact on universities and research output
US universities may also experience challenges in hiring and retaining international faculty and researchers. Departments reliant on foreign scholars—particularly in science and engineering—could face staffing shortages.
According to internal university hiring data, postdoctoral researchers often make up a significant proportion of academic staff in research-intensive institutions.
As reported by several higher education associations, the uncertainty surrounding visa sponsorship and processing times may lead institutions to scale back on hiring foreign talent altogether, affecting research output and programme continuity.
Other countries adopting more open policies
In contrast to the proposed US changes, countries such as Canada, Germany, the UK, and Australia are simplifying immigration pathways and reducing post-study visa restrictions. Educational consultants have noted a shift in interest among Indian students toward destinations with more stable and predictable visa policies.
As reported by international education agencies, countries like Germany and the Netherlands have seen an uptick in applications from Indian and other Asian students in recent years, with immigration policy cited as a key factor.
The proposed rule is still under federal review, and legal challenges are expected. However, current and prospective students are already reassessing their plans due to the ongoing uncertainty.
TOI Education is on WhatsApp now. Follow us
here
.
Ready to navigate global policies? Secure your overseas future. Get expert guidance now!
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
27 minutes ago
- Indian Express
UT schools to observe half-day schedule, special assembly today
In remembrance of the martyrdom of Shaheed Udham Singh, all government, government-aided, Central government, and private recognised schools in UT Chandigarh will observe a half-day academic schedule on July 31. As per the instructions issued by the UT Education Department, regular classes will conclude early, followed by a one-hour special school assembly dedicated to honouring the life and legacy of Shaheed Udham Singh, who laid down his life in the fight against colonial rule for the nation's freedom. In the morning session, school classes will be held till 11:00 am, followed by the special assembly from 11:00 am till 12:00 noon. For evening session schools, classes will be held till 3:00 pm, followed by the special assembly from 3:00 pm to 4:00 pm. UT Administrator Gulab Chand Kataria stated, 'Shaheed Udham Singh's fearless act of justice serves as a powerful reminder of the sacrifices that laid the foundation of our nation. On this day, special assemblies will be held across schools to honour his legacy, not only to pay tribute, but to inspire every child with the values of courage, patriotism, and integrity. Through these tributes, we aim to connect students with the spirit of India's freedom struggle and the responsibilities that come with living in a free and democratic society.' This initiative aims to inspire young minds with the values upheld by one of India's bravest freedom fighters and to deepen their connection with the spirit of the Indian freedom movement.
Hindustan Times
30 minutes ago
- Hindustan Times
Committed to fair, balanced deal, says India after Trump announces 25% tariffs
India remains intensely engaged with the US to clinch the comprehensive bilateral trade agreement by autumn 2025 despite President Donald Trump's announcement of 25% tariffs plus penalties starting August 1, people aware of the matter said on Wednesday. Piyush Goyal, India's commerce and industry minister, during a Bloomberg Television interview in London, UK, on Thursday, July 24, 2025. (Bloomberg) In a brief statement, the commerce ministry said it had 'taken note' of Trump's statement and was studying its implications while reaffirming India's commitment to a 'fair, balanced and mutually beneficial' trade deal that protects farmers, entrepreneurs and small businesses. 'The government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs,' the ministry said, adding that it 'will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK.' Indian officials and experts pushed back against Trump's characterisation of excessive trade barriers, arguing that his focus on goods trade deficit ignores the broader economic relationship where the US earns tens of billions more annually from services, education, and defence deals, and cited New Delhi's recent free trade agreements with developed economies such as Australia and the UK to demonstrate India's willingness to open up its market with protections for its vulnerable populations . People familiar with the negotiations said New Delhi expects Washington to follow Trump's announcement with a formal letter that would be analysed and responded to appropriately. The Indian negotiating team – which has held five rounds of in-person discussions with its American counterparts -- will in the meantime continue talks for a balanced deal, they added. One of the people aware of the matter pushed back against Trump's characterisation of India as maintaining excessive trade barriers, citing the recently signed free trade agreements with other developed economies including Australia and the United Kingdom where tariffs on most items were slashed. 'Hence, President Trump's generalisation that Indian tariffs are far too high, is not correct,' the person said. 'FTAs are win-win, and not one-sided.' The person highlighted Trump's focus on goods trade surplus while ignoring broader economic ties, saying: 'President Trump has said in a post on Truth Social – 'We have a massive trade deficit with India!!!' – which is just one side of the picture. Bilateral economic relationship is not only goods trade, it also includes trade in services, investments and other significant contributions to the US economy made by Indians.' According to government data, India had a $41.18 billion trade surplus with the US in 2024-25, exporting goods worth $86.51 billion and importing $45.33 billion of American merchandise. However, the people cited above argued this represented only a part of the bilateral relationship. The US gains significant revenue from financial, digital and e-commerce services, fees from students studying in America and defence deals, a second person explained. 'Such cooperation in services and contributions of Indians in American businesses have immense potential for further growth through BTA and other strategic cooperation, provided the US is not fixated with tariffs, and particularly with India's sensitive sectors, which are vital for the survival of millions of Indian subsistence farmers,' the person added. Ajay Srivastava, founder of Global Trade Research Initiative, said the US 'quietly rakes in $80-85 billion every year from India through education, digital services, financial operations, intellectual property royalties, and arms sales.' 'These massive earnings don't show up in the narrow goods trade statistics. When you factor them in, the US isn't running a deficit with India at all, it's sitting on a $35-40 billion surplus,' Srivastava added. The second person aware of the matter said India was negotiating a comprehensive bilateral trade agreement that included not just goods but 'other key sectors such as services, investments, non-tariff barriers, IPRs and customs facilitation.' 'We hope that a successful deal would help in balancing bilateral economic cooperation and prompt the Trump administration to remove reciprocal and punitive tariffs,' the person said. Industry leaders expressed concern about the tariff announcement's timing amid ongoing negotiations. Medical Technology Association of India chairman Pavan Choudary called Trump's move 'economically shortsighted and strategically misguided.' 'As a sovereign nation, India makes independent choices in defence and energy based on national interest and long-term strategic priorities. Attempting to punish these decisions through coercive trade measures is not only inappropriate but also counterproductive,' Choudary said. Agneshwar Sen, trade policy leader at EY India, warned the 25% tariff could directly affect key sectors including marine products, pharmaceuticals, textiles, leather and automobiles where bilateral trade had been 'especially robust.' However, Sen remained optimistic about ongoing negotiations, noting both countries were 'positively engaged' with the US team expected in India on August 24 for the sixth round of talks. 'I am confident that, considering our shared interests and history of cooperation, the two sides will be able to address these contentious issues constructively,' he said. Opposition slams Modi government Opposition parties criticised the government over the developments . Congress general secretary Jairam Ramesh said Prime Minister Modi should 'take inspiration from former prime minister Indira Gandhi and stand up to the president of the United States.' 'All that 'taarif' between him and 'Howdy Modi' has meant little,' Ramesh said, referring to Modi's 2019 rally with Trump in Houston. 'Mr Modi thought that if he kept quiet on the insults that the US President has hurled on India... India would get special treatment at the hands of President Trump. Clearly that has NOT happened.' Rashtriya Janata Dal MP Manoj Jha said his party was 'not very happy that it has happened under the rule of Prime Minister Modi,' while Communist Party of India MP P Sandosh Kumar described the tariffs as 'another insult to India.' DMK leader Tiruchi Siva demanded the prime minister answer questions about the tariffs in Parliament, saying lawmakers had 'not been taken into confidence.'
Economic Times
30 minutes ago
- Economic Times
Trumpland: What if the world turned US trade war back on America?
AI image Tariff' Trump has announced a 25% levy on Indian goods entering US starting tomorrow, coupled with a penalty for India's continued oil and defence purchases from Russia. Prefixing his announcement on Truth Social with 'while India is a friend', the US president has sought to punish India for asserting sovereign choices in trade and foreign policy. With friends like this, who needs friends? The irony is poetic: the self-declared custodian of free trade is now its most protectionist offender. Economics is built around the principle of movement: of goods, capital, labour and data. This isn't just ideology, it's the physics of prosperity. Yet, the US, once the world's most vocal advocate for free markets, is, in the form of Trumpland, its most disruptive force. From semiconductor export bans and weaponised sanctions to unilateral tariffs and extraterritorial dictates, Trumpland has turned the global economy into a minefield of exceptions, exclusions and coercion. So, here's the question that can now be asked aloud: what if the rest of the world sanctioned the US? What if countries collectively paused the flow of rare earths, APIs, industrial machinery, telecom infrastructure, even data? Could the US survive the very conditions it imposes on others? In 2024, US goods imports hit a record $3.3 tn, while exports reached $2.1 tn, pushing goods trade deficit to $1.2 tn, a 14% increase from the previous year. Even after including services like finance and travel, total trade deficit stood at $918 bn, up 17%, the second highest on record. Trade gap with China grew to $295 bn, a clear sign of ongoing reliance. Beyond China, the US remains critically dependent on imports for over 221 essential goods, including microchips and battery components, with foreign sourcing levels between 90% and 100%. China supplies 70% of rare earths, and dominates the global graphite supply chain. Other key materials like lithium and cobalt are also heavily imported from countries like Chile, Canada and Argentina. In total, just four trading partners — China, the EU, Mexico and Canada — each account for more than 10% of US import value. These are not discretionary purchases, but foundational components of American industry. The US is not merely part of global supply chains, but also structurally dependent on them, never mind all that talk of decoupling and University's Budget Lab assessed that the US' 2025 tariff surge has raised its average effective tariff rate to 22.5%, the highest since 1909. This policy shift has led to a 2.3% rise in consumer prices, costing the average household $3,800 annually. Lower-income families are hit hardest, with those in the second income decile losing $1,700 a GDP growth is expected to drop by 0.9 percentage points in 2025. Long-term output is projected to remain 0.6% smaller, a permanent loss of around $180 bn a year. Exports have declined by 18.1%. Prices for essentials have spiked, with apparel up 17%, food nearly 3% higher, and new cars costing an extra $4,000 on from protecting the economy, Trump tariffs are eroding household income, slowing growth and adversely affecting America's economic Walter Scheidel explains in his 2017 book, The Great Leveler, entrenched systems rarely reform themselves through negotiation alone. Meaningful redistribution often follows rupture rather than consensus. So, what might rupture look like today? Imagine the world's major exporters including Europe, China, India, Asean and Latin America agreeing to a coordinated pause in shipments to the US. No semiconductors, no APIs, no telecom equipment. In a matter of weeks, American production lines would slow, inflation would surge, and financial markets would be rattled. It would serve as a powerful reminder that the US economy is not insulated by exceptionalism. It operates on the consent and cooperation of the rest of the world. This isn't about restoring balance. It's a call to deliberately hit the US economy where it hurts, to expose the double standards that define today's global order. In any functioning market, domestic or global, rules matter not only because they enable exchange but also because they constrain abuse. Participation in global trade is characterised by the principle of mutualism and benefits will flow only as long as responsibilities are this fundamental point, the US' economic bullying undermines not just the trust but the very ethos of the current global economic system. The world, India included, now faces a pivotal question. Should it continue to accommodate this exception, or begin to act as a collective? A coordinated stand by global exporters, in defence of systemic integrity, would affirm that globalisation is not the privilege of a single actor but the shared project of many. If the international order is to survive, it must demonstrate that no participant is above its rules. Trumpland may yet learn that the system the US helped create can continue to evolve without its dominance. And that the invisible hand, if constrained long enough, may simply withdraw its reach from the United States. (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Regulators promote exchanges; can they stifle one? Watch IEX Jane St: How an options trader smelt a rat when others raised a toast TCS job cuts may not stop at 12,000; its bench policy threatens more From near bankruptcy to blockbuster drug: How Khorakiwala turned around Wockhardt Stock Radar: SBI Life rebounds after testing 50-DEMA; could hit fresh record highs above Rs 2,000 – check target & stop loss These 10 banking stocks can give more than 25% returns in 1 year, according to analysts Two Trades for Today: A metals stock for an over 6% gain, a large-cap chemicals maker for about 7% upmove F&O Radar| Deploy Broken Wing in LIC Housing Finance to benefit from bearish outlook
