President Donald Trump has signed an executive order aimed at increasing scrutiny of H-1B employers that lay off U.S. workers, as part of a broader effort to strengthen oversight of the visa program.
President Donald Trump has signed an executive order that mandates federal agencies to closely examine H-1B visa applications from employers who have recently laid off, or are planning to lay off, similarly situated U.S. workers. The order, signed on September 18, seeks to enhance oversight of the H-1B program and prevent the displacement of American employees by foreign workers.
This executive directive instructs the Secretaries of State, Labor, and Homeland Security to take into account an employer’s recent or planned layoffs when processing H-1B labor condition applications, petitions, and visas. The administration asserts that this move will help ensure that the program is not misused by companies looking to replace U.S. workers with lower-paid foreign labor.
As part of the new policy, the Department of Labor is required to review data from previously submitted labor condition applications within 30 days. This review aims to determine if further action against sponsoring employers is warranted under federal law.
The White House has indicated that the policy will involve enhanced coordination among various federal departments, including State, Labor, Homeland Security, Commerce, and Education, as well as the Small Business Administration. These agencies will share information regarding wages, employment conditions, industries, and job specialization while administering the H-1B program.
This executive order is a continuation of the Trump administration’s broader initiative to tighten oversight of the H-1B program, which allows U.S. employers to hire foreign workers for specialty occupations. The administration has alleged that some employers and outsourcing firms have exploited the program by hiring lower-paid foreign workers, thereby displacing American employees. The executive order references instances where U.S. workers were reportedly laid off and subsequently replaced by H-1B visa holders, which the administration cites as justification for the new policy.
Additionally, the order highlights that federal agencies have identified potential violations involving H-1B employers, including alleged misrepresentation of job duties, working conditions, and worker qualifications.
In a separate but related action, Trump has signed a proclamation renewing a $100,000 fee requirement for certain new H-1B visa applications. This measure, which was first introduced in September 2025, treats current H-1B visa holders and certain workers already covered by the program differently under the administration’s rules.
The $100,000 fee has faced legal challenges, with reports indicating that a federal appeals court is currently reviewing the administration’s appeal of a ruling that blocked the fee’s implementation.
While the latest executive order does not outright prohibit employers from laying off U.S. workers and subsequently sponsoring H-1B workers, it does instruct federal agencies to consider such layoffs when reviewing H-1B-related applications. It also directs the Labor Department to investigate previously filed applications for potential violations.
The administration’s recent actions are expected to heighten scrutiny of companies that heavily rely on H-1B workers, particularly in the technology and outsourcing sectors, as federal agencies ramp up coordination over employment and immigration data.
According to Reuters, the implications of these changes could significantly affect the landscape for employers utilizing the H-1B visa program.