Trump Admin Plans Major Changes in Green Card & Employer Sponsorship Rules

According to the updates and reports released by several news outlets, the Trump administration is extensively preparing to rewrite the rules that govern how U.S. employers sponsor foreign workers for permanent residency. Once implemented, it could become the most significant overhaul of the employment-based green card in more than two decades.

The Department of Labor's latest regulatory agenda suggests that the agency is preparing a proposal titled "Modernizing the Labor Market Test and Improving Protections for U.S. Workers in the PERM Immigrant Visa Program." The plan targets the Program Electronic Review Management system, or PERM. This is the labor certification process that most employers must complete before they can sponsor a foreign national for an employment-based green card under the EB-2 and EB-3 categories.

What exactly does it mean and why does it matter for employment-based green card holders in the EB-2 and EB-3 categories? Here, our eb1a experts have discussed all the details with a clear explanation.

Why does it matter for the employment-based green card holders?

PERM sits at the foundation of the employment-based green card system. Under current rules, employers must prove that no qualified, willing, and available U.S. worker exists for a position, and that hiring a foreign national won't undercut wages or working conditions for similarly employed Americans. To meet that bar, companies traditionally run a structured recruitment campaign. The campaign may include obtaining a prevailing wage determination, placing job ads (including two Sunday newspaper listings for most professional roles), posting an internal notice, and so forth. The company may also consider filing with the relevant State Workforce Agency and conducting several additional recruitment steps such as online postings or job fairs.

The Labor Department now argues that those requirements are outdated, noting the rules have not been substantially revised since 2004. In other words, there is a significant disparity between recruiting practices and modern trends, which have shifted dramatically toward digital platforms. The agency says it wants to strengthen recruitment standards and expand protections for U.S. workers affected by layoffs.

A modernization with uncertain trade-offs?

Since no draft regulatory text has been released, the practical shape of the changes remains unclear. Our main source about the update in this case is the speculation by the immigration attorneys. Morgan Bailey, a partner at Mayer Brown and a former senior Department of Homeland Security official, questioned whether the changes would bring clarity and efficiency or instead add complexity to an already lengthy and difficult process. Bailey also pointed to a broader problem with the current system: PERM guidance is often unclear and the DOL has no dedicated help line for substantive questions. Moreover, she added that outdated FAQ materials leave employers guessing in gray areas. She commented the following, according to a report by the Newsweek:

"DOL calls the changes ‘modernization’ but a key question is whether the changes will bring clarity and make the process more efficient or result in additional complexity and slow down a system that is already lengthy and can be challenging to navigate.

Employers and practitioners routinely describe a lack of clarity across multiple areas of the PERM process. Questions often have no clear regulatory answer. DOL does not maintain a publicly accessible help line for substantive PERM guidance, and the formal FAQ documents have not been comprehensively updated. When an employer encounters a gray area, the practical reality is that there is often no one to call and no published guidance to rely upon. That ambiguity increases the risk of audit or denial.”

The stakes for enforcement were further underscored by a recent Justice Department lawsuit against a technology company. The latter was accused of steering outside job applicants toward an email system that allegedly blocked their applications from being received and, hence, conveyed to the DOL that no qualified U.S. workers had applied. The department separately suspended the company from the PERM program for 180 days.

Reporting from Bloomberg Law frames the PERM rewrite as a continuation of the larger crackdown tied to the H-1B visa program. In a related but separate action, the DOL published a proposed rule in March 2026 to raise prevailing wage levels across the H-1B, H-1B1, E-3 and PERM programs, with early estimates suggesting average salary increases of roughly $14,000 per sponsored worker.

What the overhaul perhaps won’t change

Immigration analysts caution that the PERM overhaul, whatever form it takes, would not touch the deeper structural drivers of green card backlogs. It would not adjust annual visa number limits for EB-2 or EB-3. Neither it will alter per-country caps, nor move the Visa Bulletin priority dates. Its impact would be concentrated at the recruitment and documentation stage that precedes those filings.

The proposal remains at the Notice of Proposed Rulemaking stage, with the DOL expected to publish draft text in July 2026. The department will open a public comment period before the final rule takes effect. Employers and immigration lawyers are watching closely for the final text, which will determine whether "modernization" ultimately speeds up or further slows an already backlogged system.

At GCEB1, our EB-1A consultancy is staying alert on all the changes and updates in the U.S. immigration landscape. For more details, insights and latest developments, stay tuned to our blog section. We wish you a safe and stress-free immigration journey ahead.

Frequently Asked Questions

1. What is the Trump administration changing about green card sponsorship?

The Department of Labor is preparing to overhaul the PERM (Program Electronic Review Management) system: the labor certification process most employers must complete before sponsoring a foreign worker for an EB-2 or EB-3 green card. The plan focuses on modernizing and revamping the entire recruitment standards.

2. What is PERM and why does it matter for green cards?

PERM is the labor certification step that requires an employer to test the U.S. labor market and prove no qualified and willing American worker is available before sponsoring a foreign national. It is considered the first stage in most employment-based green card cases filed before Form I-140 and I-485.

3. Will the new PERM rules speed up or slow down green card processing?

This bit of information is unclear. The DOL frames the changes as "modernization," but immigration attorneys warn stricter recruitment and compliance requirements could add complexity and lengthen an already backlogged process rather than streamline it. No draft regulatory text has been released yet.

4. Does the PERM overhaul change the Visa Bulletin or green card wait times for Indian applicants?

No. The proposed rule does not adjust annual visa number limits, per-country caps, or Visa Bulletin priority dates. Its impact is limited to the labor certification stage that precedes filing.

5. When will the new PERM rule be published?

The Department of Labor has indicated it expects to publish a Notice of Proposed Rulemaking (NPRM) in July 2026. Once published, the rule will go through a public comment period before any final version takes effect. The current PERM rules remain in place until then.

6. Is this related to the H-1B visa changes the Trump administration has made?

Yes. The PERM overhaul is part of a broader push to tighten employment-based immigration, alongside a wage-weighted H-1B lottery selection process, a $100,000 fee on certain new H-1B petitions. It also falls in the line with a separate March 2026 proposed rule raising prevailing wage levels across the H-1B, H-1B1, E-3, and PERM programs.

Sources and further readings

1. Kably, Lubna.“Trump Administration Eyes Tighter H-1B, Green Card and Student Visa Rules; Indians Could Be Among Most Affected.” The Times of India. July 7, 2026.
2. MSN.“Green Card Update: Trump Admin Plans to Overhaul Employer Sponsorship Rules.”MSN News. July 2026.
3. Stevenson, Sam.“Green Card Update: Trump Admin Plans to Overhaul Employer Sponsorship Rules."Newsweek. July 6, 2026.