The move could directly stop hundreds of thousands of foreign workers from keeping their H-1B visas while their green card applications are pending.
The proposal which is being shared between the Department of Homeland Security Department (DHS) heads is part of Trump's "Buy American, Hire American" initiative promised during the 2016 campaign, US-based news agency McClatchy's DC Bureau reported.
It aims to impose new restrictions to prevent abuse and misuse of H-1B visas, besides ending the provision of granting extension for those who already have a green card.
"The idea is to create a sort of 'self- deportation' of hundreds of thousands of Indian tech workers in the United States to open up those jobs for Americans," it said, quoting a source briefed by Homeland Security officials.
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"The agency is considering a number of policy and regulatory changes to carry out the President's Buy American, Hire American Executive Order, including a thorough review of employment-based visa programmes," said Jonathan Withington, chief of media relations for United States Citizenship and Immigration Services (USCIS).
It is typically issued for three to six years to employers to hire a foreign worker. But H-1B holders who have begun the green card process can often renew their work visas indefinitely.
The technology companies depend on it to hire tens of thousands of employees each year from countries like India and China.
The proposed changes would have a dramatic effect particularly on Indian visa holders considering more than half of all H-1B visas have been awarded to Indian nationals, the report said, quoting the Pew Research Center report.
Fresco estimates more than 1 million H1-B visa holders in the country are waiting for green cards, many of whom are from India and have been waiting for more than a decade.
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