The White House is reviewing the second half of the H-1B modernization rule. This is the final step prior to finalizing the rules included in the proposal. With the inauguration of President-elect Trump only one month away, it is crucial for the current administration to finalize the rule.

The Office of Information and Regulatory Affairs (OIRA) currently has the proposal for review. The OIRA is a unit of the Office of Management and Budget, which is charged with review prior to public release. If finalized, the proposed rule would apply to the upcoming H-1B season.

If finalized, a few policies are affected. Adjudicators will be required to defer to prior U.S. Citizenship and Immigration Services (USCIS) approvals when cases have the same underlying facts. In addition, H-1B applicants’ degrees must relate directly to their occupation. Finally, the extension of active student visa status will automatically be issued in order to eliminate the cap-gap issue. In these circumstances, the student visa expires prior to the start of the H-1B visa.

These proposed changes were originally introduced in October 2023. The full proposed program was split in two sections at that time. The first half was approved ahead of the 2024 H-1B annual lottery process. Those updates address potential manipulation efforts for the selection process when individuals have multiple registrations. Whether the balance of the full proposed H-1B modernization rule will be finalized prior to the January 20, 2025, inauguration remains to be seen.

If you have questions about the H-1B modernization rule, the H-1B program, or any other U.S. immigration related issue, contact us at ILBSG. Our clients work directly with attorneys to ensure they get the right advice for their specific situations. Contact us to ensure you remain always in compliance.

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