US Green Card Rules Trigger Concern Among Indian Students, H-1B Workers Weighing Other Options

Last Updated:May 25, 2026, 08:29 IST

A new Trump administration immigration policy requiring many Green Card applicants to apply from their home countries is likely to impact Indian students and professionals.

A new immigration policy announced by the Trump administration has triggered anxiety among Indian students and professionals in the United States, with education industry leaders warning that repeated uncertainty around visas, work permits and permanent residency is beginning to alter how students view America as a long-term destination.

According to a report by Moneycontrol, the latest memo from the US Citizenship and Immigration Services (USCIS) has intensified fears among Indian students already grappling with tightening immigration rules and growing unpredictability surrounding post-study settlement pathways.

The USCIS memo, released last week, reiterates that obtaining permanent residency from within the United States is a “discretionary benefit" and not an automatic entitlement.

While the policy does not directly amend immigration law, experts and immigration advocates say it signals a tougher approach towards foreign nationals seeking long-term residency after entering the US on temporary visas.

SETTLEMENT PATHWAY NO LONGER LOOKS CERTAIN

For years, the United States remained the top overseas education destination for Indian students, not only because of its universities and job opportunities, but also because it offered a relatively clear route from education to employment and eventually permanent settlement.

That perception is now being shaken.

“The broader message the US is sending right now is that immigration pathways are getting tougher and tougher. You’ve already had tighter OPT and STEM OPT scrutiny, uncertainty around the H-1B lottery, and now this," Mayank Kumar, co-founder and former managing director of upGrad, was quoted as saying by Moneycontrol.

The report noted that repeated policy shifts and administrative tightening are beginning to reshape student preferences globally, as families increasingly evaluate whether investing heavily in a US education still guarantees stability and long-term career prospects.

The concern stems from the USCIS position that temporary visa holders, including students, tourists and workers, are expected to leave the US once the purpose of their stay ends, rather than treating their stay as the “first step" toward obtaining a Green Card.

“Nonimmigrants, like students, temporary workers, or people on tourist visas, come to the US for a short time and for a specific purpose. Our system is designed for them to leave when their visit is over. Their visit should not function as the first step in the Green Card process," USCIS said in a statement, according to an Associated Press report.

WHAT THE NEW POLICY SAYS

As per the Associated Press, the Trump administration has announced that many foreigners already living legally in the US would now need to leave the country and apply for permanent residency from their home country instead of completing the process from within America.

For decades, many foreign nationals, including students, work visa holders and spouses of US citizens, were able to apply for adjustment of status while remaining in the country.

Under the new policy approach, however, adjustment of status is being treated as an “extraordinary form of relief", and applications would be assessed on a “case-by-case basis."

USCIS spokesman Zach Kahler defended the move, saying, “We’re returning to the original intent of the law to ensure aliens navigate our nation’s immigration system properly."

“From now on, an alien who is in the US temporarily and wants a Green Card must return to their home country to apply, except in extraordinary circumstances," he added.

The agency argued that the policy would help curb visa overstays and allow immigration authorities to focus on other priorities.

FEARS OF DISRUPTION FOR INDIAN STUDENTS, H-1B HOLDERS

The development is expected to have major implications for Indian nationals, especially students and H-1B visa holders, many of whom rely on adjustment of status provisions because of decades-long employment-based Green Card backlogs.

According to the IANS report, immigration lawyers and advocacy groups warned that forcing applicants to leave the US during processing could disrupt careers, family stability and long-term residency plans for thousands of Indian-origin families.

Doug Rand, a former senior advisor at USCIS during the Biden administration, criticised the policy strongly.

“The goal of this policy is very explicit. Senior officials in this administration have said over and over that they want fewer people to get permanent residency because permanent residency is a path to citizenship, and they want to block that path for as many people as possible," Rand said, according to AP.

Immigration advocacy group FWD.us also condemned the move.

“Today’s announcement is a stark, deeply harmful, upheaval of more than 70 years of legislative, administrative, and judicial precedent," FWD.us President Todd Schulte said.

“It will create chaos and impose massive costs on immigrants who have lived and worked legally in the United States for many years," he added.

LAWMAKERS AND IMMIGRATION EXPERTS PUSH BACK

Indian-American Congressman Ami Bera also sharply criticised the policy, warning that it would create uncertainty for families, workers and employers following the law.

“I strongly oppose the Trump administration’s disruptive decision to require many students, temporary visa holders, and other individuals seeking green cards to leave the United States and return to their home countries while their applications are processed," Bera said.

“This policy creates unnecessary fear and uncertainty for families, workers, and employers who are following the law," he added.

Bera further said the policy ignored the reality faced by immigrants stuck in long visa backlogs.

“The Administration disregards the fact that many individuals seeking permanent residency are here legally and waiting for their cases to move through an already backlogged immigration system," he said.

“As the son of Indian immigrants, I know firsthand that our nation is strengthened by people who come here legally, work hard, and contribute to our communities."

Meanwhile, immigration attorney Shev Dalal-Dheini told AP that the move could broadly impact anyone seeking a Green Card, including students, professionals and people married to US citizens.

“It’s really hard to tell how this is going to be applied," Jessie De Haven of the California Immigration Project said, warning that the policy could have a “chilling effect" on applicants.

GROWING UNCERTAINTY MAY RESHAPE STUDENT CHOICES

The Moneycontrol report said the latest move adds to a growing list of concerns for Indian students considering the US, particularly around Optional Practical Training (OPT), STEM OPT extensions and the uncertainty of the H-1B lottery system.

Industry observers believe that as immigration pathways become increasingly unpredictable, students may begin looking more seriously at alternative destinations that offer clearer long-term residency and work opportunities after graduation.

For Indian students and professionals already navigating lengthy visa queues and uncertain immigration rules, the latest USCIS policy has further deepened concerns over whether the traditional American dream remains as attainable as it once seemed.

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