President Donald Trump signed an executive order on September 18 directing federal agencies to increase scrutiny of H-1B visa petitions in cases where U.S. workers could be displaced. The order directs the departments of State, Labor, and Homeland Security to consider an employer’s layoff history when reviewing visa applications, aiming to prevent companies from using the program to replace American workers with lower-paid foreign labor.
The policy shift follows a proposal in September 2025 to impose a $100,000 fee on new H-1B petitions, which critics argue could further disrupt the immigration landscape for employers and visa holders. The changes include a weighted H-1B selection system prioritizing higher-paid positions, expanded biometric and security fees for large employers, and a proposal to eliminate a rule allowing some foreign workers to remain in the U.S. for up to 60 days after job loss.
Vice President JD Vance, who has been dubbed the administration’s "fraud czar," stated during a September 15 appearance on the All-In podcast that officials are examining employers’ layoff records to curb abuses. "We're also looking at various ways of preventing companies that use H-1B visas from laying off a bunch of American workers," Vance said. He added that some firms apply for visas while simultaneously reducing domestic staff, calling such practices "ridiculous."
Impact on visa holders
Vivienne Yang, a former H-1B visa holder from Taiwan who earned a master’s degree in applied analytics from Columbia University, was laid off from her ad-tech job in 2024. After the policy changes, she chose to leave the U.S., forfeiting the life she had built in New York. Yang’s experience reflects broader concerns among visa holders about the program’s stability and long-term viability in the current regulatory environment.
Policy rationale and enforcement
The Trump administration frames the changes as necessary to protect American workers from displacement by foreign labor. The executive order directs agencies to scrutinize petitions more closely, particularly in industries where layoffs have occurred alongside visa applications. The weighted selection system, which favors higher-paid positions, is intended to ensure that H-1B visas are awarded to roles that align with higher wage standards, reducing incentives for companies to replace U.S. workers with cheaper foreign labor.
Critics of the program argue that H-1B visas have been misused by some employers to fill roles that could be performed by American workers at competitive wages. They contend that the program’s structure has enabled companies to exploit loopholes, such as hiring foreign workers at lower salaries than their U.S. counterparts. Proponents of the visa program, however, emphasize its role in attracting specialized talent that fills critical gaps in the U.S. labor market, particularly in tech, healthcare, and engineering sectors.
Broader implications
The policy changes come amid ongoing debates over the H-1B program’s effectiveness and fairness. Supporters of stricter oversight argue that the reforms are long overdue to prevent exploitation of the system, while opponents warn that increased fees and scrutiny could deter legitimate employers from hiring foreign talent, potentially harming innovation and economic growth. The elimination of the 60-day grace period for job loss could also force foreign workers to leave the U.S. more quickly, adding uncertainty to their employment status.
The administration has not provided a timeline for full implementation of the new rules, but the executive order signals a shift toward more aggressive enforcement of existing immigration policies. Federal agencies are expected to issue further guidance in the coming months as they operationalize the changes.