Trump administration tightens H-1B review for firms that have cut U.S. workers

President Donald Trump signed an executive order on September 18 that instructs the Departments of State, Labor and Homeland Security to consider whether a sponsoring company has laid off or intends to lay off U.S. workers when reviewing H-1B applications. The proclamation argues that some employers have replaced thousands of American jobs with lower-paid foreign workers, citing technology firms that allegedly laid off between 800,000 and 1.3 million U.S. employees from 2022 through 2026.

The order calls for enhanced data sharing among federal agencies and requires the Labor Department to examine recent Labour Condition Applications within 30 days for possible enforcement action. Immigration lawyer Mitch Wexler said the implementation details remain unclear, but the move could broaden wage and job-requirement scrutiny. The measure also targets outsourcing models that shift work offshore after employing H-1B staff. Earlier Senate hearings in 2025 had questioned major tech and consulting firms about similar practices, and the new order moves the issue from debate to policy action.