We recently advised a client who is a Chinese tech executive planning an H-1B extension, and they asked about the impact of the proposed H-1B reforms, especially the prioritization of US graduates and the elimination of the so-called green card loophole. These reforms, if enacted, will reshape the H-1B visa landscape, particularly for companies sponsoring foreign talent.

The key proposed changes include giving first preference to applicants with a US master’s degree or higher, effectively reshuffling the lottery order to favor US-educated candidates. Additionally, the reforms aim to close the “green card loophole” by tightening the definition of specialty occupation and limiting visa extensions based on long-pending green card applications. From our practical experience, this means that many applicants currently benefiting from extended H-1B status under INA §106(a) may face stricter scrutiny.

For our client base of Chinese corporate executives and investors, who often rely on H-1B for initial or transitional work authorization, these changes imply a need to consider alternative pathways such as L-1 intracompany transfer or O-1 extraordinary ability visas. We have seen in the past year that USCIS increasingly enforces 8 CFR 214.2(h) requirements related to specialty occupation criteria, which aligns with the intent behind the proposed reforms.

Attorney Insight
One concrete example from last quarter: a fintech client’s H-1B extension was RFE’d because USCIS questioned whether the offered role met specialty occupation standards, despite the candidate holding a US master’s degree. This case underlines the importance of robust job descriptions and credential evaluations, which we recommend clients prepare proactively.

Actionable steps we suggest now include: 1) Employers should prioritize early submission of Labor Condition Applications (LCA) with accurate SOC codes reflecting specialty occupations, which helps preempt RFEs. 2) Applicants holding US advanced degrees should clearly document their educational credentials and how these align with the job duties to maximize chances under the new priority scheme.

Attorney Insight
While the reforms are still in proposal stages and not finalized, we anticipate that USCIS and the Department of Labor will update their guidance accordingly. We recommend clients monitor official channels such as USCIS policy updates and the Federal Register. For those relying on H-1B as a stepping stone to green cards, it is prudent to evaluate EB-1C or EB-5 options in parallel, especially given recent EB-1C approval rate improvements to above 70% in Q1 2026 [2].

In summary, these H-1B reforms signal a tightening environment but also create opportunities for those with US advanced degrees and strong specialty occupation claims. We advise affected clients to review their immigration strategies now, particularly focusing on documentation quality and alternative visa categories. As always, timely preparation and understanding USCIS’s evolving criteria will be key to maintaining smooth transitions.

Data Sources

[1] U.S. Department of State, travel.state.gov [2] USCIS, uscis.gov