By Lalit K Jha
Washington, Sept 20: The White House said on Friday that President Donald Trump’s proclamation on the H-1B visa program would “curb abuses that displace U.S. workers and undermine national security,” as the order imposed a $100,000 fee on new petitions and barred entry for applicants without proof of payment.
Trump’s proclamation requires employers to submit a $100,000 payment with new H-1B petitions, and directs agencies to block entry for applicants if the fee has not been paid. The White House said the measure was intended to protect American jobs and prevent companies from hiring lower-paid foreign labour in place of U.S. workers.
“American workers are being replaced with lower-paid foreign labour, creating an economic and national security threat to the nation,” the fact sheet said.
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The order instructs the Department of Homeland Security to deny petitions from applicants outside the United States unless the payment is provided. Limited exemptions will be allowed “if in the national interest.” Employers must retain documentation of the payment, while the State Department will verify compliance during visa processing. Non-payment will lead to denial of entry, the document said.
The proclamation also directs the Labour and Homeland Security departments to issue joint guidance covering “verification, enforcement, audits, and penalties.” The Labour Department is tasked with revising prevailing wage levels for H-1B jobs, while Homeland Security must prioritise “high-skilled, high-paid” workers when approving petitions.
The administration cited data showing reliance on H-1B visas has surged in the technology sector. The share of IT workers on such visas grew from 32% in 2003 to more than 65% in recent years. At the same time, unemployment among recent computer science graduates stood at 6.1%, and 7.5% for computer engineering graduates — more than double the rate for biology or art history majors.
Officials highlighted examples of major corporations securing large numbers of visas while cutting American jobs. One firm received approval for 5,189 H-1B workers in fiscal 2025 but laid off about 16,000 U.S. employees this year. Another obtained 1,698 visas and announced 2,400 layoffs in Oregon. A third company cut 27,000 American jobs since 2022 while being approved for 25,075 visas, the fact sheet said.
“American IT workers have even been reportedly forced to train their foreign replacements under nondisclosure agreements,” the fact sheet said.
The administration argued that the H-1B system discourages U.S. students from pursuing careers in science and engineering. “The H-1B program is creating disincentives for future American workers to choose STEM careers, which threatens our national security,” the document added.
Trump, who returned to the White House after defeating Joe Biden in 2024, has long pledged to prioritize American workers. “Voters gave President Trump a resounding mandate to put American workers first, and he has worked every day to deliver on that commitment,” the White House said.
The administration linked the new order to its wider economic agenda, pointing to tariffs, renegotiated trade deals, and efforts to strengthen domestic supply chains. It said that since Trump’s return, “all employment gains have gone to American-born workers—unlike last year during the same period under President Biden, when all employment gains went to foreign-born workers”.
The U.S. Department of Labour on Friday unveiled “Project Firewall,” a sweeping enforcement initiative aimed at cracking down on alleged abuses of the H-1B visa program. They said it will conduct investigations of employers through Project Firewall to maximise compliance.
For the first time in the agency’s history, the Secretary of Labour will personally certify the initiation of probes when there is reasonable cause to believe an H-1B employer is not in compliance.
Labour Secretary Lori Chavez-DeRemer said that “by rooting out fraud and abuse, the Department of Labour and our federal partners will ensure that highly skilled jobs go to Americans first.”
Under the initiative, investigations may lead to enforcement actions against violators, including monetary penalties and debarment from the program. Employers found in violation could be barred from using H-1B visas for a prescribed period.
On the same day, Trump also launched a new "Gold Card" visa. He pitched it as a program to attract extraordinary talent and funnel billions into U.S. coffers, while drawing a sharp contrast with what he called the “open borders disaster” of his predecessor.
The executive order signed by Trump, which created the Gold Card visa program, allows foreign nationals of “extraordinary ability” to obtain expedited entry to the United States by contributing at least $1 million to the U.S. Treasury—or $2 million if sponsored by a corporation.
Trump's proclamation represents one of the most sweeping changes to skilled immigration policy in years. By imposing steep new costs and instructing agencies to crack down on perceived abuse, the White House said it is raising the bar for companies to prove they genuinely need foreign workers.
Trump’s move is expected to fuel debate over the balance between safeguarding American jobs and maintaining access to global talent as the 2026 election season approaches.
[5WH/VS]
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