H-1B Visa: Donald Trump Orders Greater Scrutiny of Companies Laying Off US Workers

US President Donald Trump has tightened scrutiny of employers seeking H-1B visas after laying off American workers, while separately extending a $100,000 payment requirement for certain H-1B petitions for another year. The new measures could affect companies that reduce their US workforce while seeking foreign workers for similar roles, with potential implications for Indian technology professionals, who make up the largest share of H-1B beneficiaries, India Today reported.

What Donald Trump's New H-1B Order Says

Under the executive order signed on September 18, the US Departments of State, Labor and Homeland Security must consider whether an employer has directly or indirectly laid off similarly situated US workers during the previous year or plans future layoffs that could negatively affect them. US-Greenland Deal: Donald Trump Announces Permanent Security Control, Bans Adversary Bases.

The agencies will also coordinate with the Commerce and Education departments and the Small Business Administration to obtain information on wages, employment conditions, academic qualifications and industry requirements.

The order does not automatically prohibit a company from sponsoring H-1B workers simply because it has carried out layoffs. Instead, layoffs become a factor that federal agencies must consider while reviewing labor-condition applications, visa petitions and applications for entry into the US.

Labor Department to Review Earlier H-1B Filings

The administration has also ordered the Labor Department's Wage and Hour Division to begin reviewing data related to previously submitted Labor Condition Applications within 30 days. The review will determine whether further action against sponsoring employers is warranted under existing federal law. CNN, MS NOW and Politico Banned From White House Over ‘Fake News’: What Donald Trump Said.

An LCA is a document employers generally file with the Labor Department when seeking to employ H-1B workers. Among other requirements, employers must meet rules concerning wages and working conditions.

Why Indian Professionals Could Be Affected

Indian nationals are the largest group using the H-1B programme, making up roughly 71% of approved H-1B beneficiaries in 2024, according to figures cited in recent reporting. The visa is widely used by Indian technology and engineering professionals seeking employment in the United States.

The latest order could make some employers more cautious about sponsoring H-1B workers after conducting layoffs, particularly where the foreign hires would perform similar work. However, the actual impact will depend on how US agencies implement the order and the rules and operational guidance issued under it.

$100,000 H-1B Fee Extended

Alongside the new scrutiny, Trump has extended the $100,000 payment requirement for certain H-1B petitions for another 12 months. The White House says the restriction will continue until September 21, 2027. It applies to certain H-1B workers outside the US, subject to specified exceptions, rather than imposing a $100,000 charge on every H-1B petition.

The measure was originally introduced in September 2025. Its continuation comes while legal challenges to the fee remain pending. Reuters reported that a federal appeals court is reviewing the legal dispute surrounding the fee.

White House Cites Changes in H-1B Applications

The White House says the earlier restrictions have already changed H-1B filing patterns. According to the administration, registrations from the largest IT staffing and outsourcing companies fell by 92%, from 24,946 to 2,055. It also reported a nearly 97% decline in consular-processing requests between the FY2025 and FY2027 cap seasons.

The administration argues that the changes have shifted the programme toward higher-skilled and higher-paid workers. These figures and the administration's assessment describe the government's view of the policy's effects.

Companies Face Closer Checks

The latest order comes amid broader US efforts to tighten oversight of the H-1B programme. The administration has alleged that some employers have replaced American workers with lower-paid foreign workers or used outsourcing arrangements that eventually move jobs outside the US.

Supporters of the H-1B programme, however, argue that US employers continue to require specialised skills that may not always be immediately available in the domestic workforce. The Foundation for India and Indian Diaspora Studies, for example, said specialised areas such as artificial intelligence and cybersecurity have specific skill gaps.

For Indian professionals, the immediate impact will depend on how employers respond to the additional scrutiny, how the agencies implement the new rules and the outcome of ongoing legal challenges to the fee.

What Happens Next

US agencies are expected to develop further rules and operational guidance to implement the executive order. The Labor Department's review of earlier H-1B filings is also expected to begin within 30 days. With the $100,000 requirement now extended through September 2027 and greater scrutiny of companies undertaking layoffs, the latest measures mark another significant change in the US H-1B system and its hiring environment for foreign skilled workers.

(The above story first appeared on LatestLY on Sep 19, 2026 04:09 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).