On September 18, 2026, President Trump signed a sweeping executive order that could fundamentally reshape how the federal government evaluates H-1B visa applications.
The order, formally titled "Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program," directs federal agencies to consider an employer's recent or planned layoffs when reviewing H-1B cases.
The Trump administration plans to ramp up scrutiny of businesses hiring H-1B workers if those companies have conducted recent layoffs, the latest step in a campaign to limit foreign employment.
What the Order Requires
The executive order directs the Departments of State, Labor, and Homeland Security to consider whether a sponsoring employer "directly or indirectly" laid off employees within the previous year or plans future layoffs that "negatively affect the employment of similarly situated" U.S. workers when adjudicating an H-1B labor condition application (LCA), petition, visa application, or application for admission to the United States.
This review can come up at several points in the H-1B process, including when an employer files a Labor Condition Application or H-1B petition, when an employee applies for an H-1B visa, and when an H-1B employee seeks admission to the United States.
Critically,
the order does not ban employers with layoff histories from filing H-1B petitions, nor does it establish a formal labor market test. It requires agencies to weigh layoff activity as a factor.
Interagency Data Sharing and Expanded Coordination
The directive goes beyond simply adding a layoff consideration to individual case reviews.
The order directs the Secretary of State, the Secretary of Labor, and the Secretary of Homeland Security to consult with the Secretary of Commerce, the Secretary of Education, and the Administrator of the Small Business Administration in order to receive additional data for the administration of the H-1B program, such as data on wages, industrial conditions, and employment specialization.
The administration says the move is intended to strengthen oversight of the H-1B program and prevent employers from using foreign workers to displace American employees.
DOL Review of Existing LCAs and Enforcement Timeline
One of the most operationally significant provisions involves the Department of Labor's backward-looking review authority.
The Labor Department has 30 days to start, which ends up being around October 18, 2026. The Wage and Hour Division has to begin reviewing data from labor condition applications already on file, then decide whether to act against the employers who filed them. This review lets the Labor Secretary open an H-1B investigation personally, with no worker complaint behind it.
That is the same power behind Project Firewall, the enforcement push the Labor Department launched in September 2025. This order reads as the next phase of that effort.
For context,
in November 2025, DOL told Fox News that it had at least 175 ongoing H-1B investigations and had assessed $15 million in back wages owed to workers.
What It Does NOT Change—Yet
The executive order does not, on its face, amend the Immigration and Nationality Act (INA) or the H-1B regulations.
Instead, it directs the agencies to incorporate layoff and labor-market information into H-1B administration to the extent consistent with existing law and authorizes implementing rules, policies, operational guidance, or other guidance.
As of September 19, 2026, no implementing guidance has been issued, and details regarding effective dates and enforcement mechanisms remain unclear.
As Fragomen senior counsel Mitch Wexler noted,
"It is not yet clear how the immigration agencies will implement these provisions."
The key phrase is "similarly situated United States workers." A cut on the same team, doing the same work, is much closer to the H-1B role than a layoff in another department at another site. Details on this difference have not been clarified yet.
Practical Implications for Employers
The uncertainty surrounding the order should not lead to complacency. Immigration attorneys are already advising employers to take proactive steps:
- Audit layoff-to-H-1B connections.
- Prepare for DOL enforcement.
- Coordinate internally. Companies should ensure that HR, legal, and immigration counsel are aligned on workforce planning, particularly when layoffs and H-1B sponsorships may overlap.
If a company recently laid off a group of U.S. workers and then quickly files a large number of H-1B petitions for similar positions, that situation could receive additional scrutiny. But this does NOT mean that a company that has conducted layoffs can no longer sponsor H-1B workers.
Impact on H-1B Workers and Applicants
While the executive order is primarily directed at employers, its practical effects will be felt acutely by H-1B workers and prospective visa holders. Workers whose employers have conducted recent layoffs may face increased processing delays, additional requests for evidence (RFEs), or potential denials at multiple stages—from the initial LCA filing through to entry at a U.S. port of entry.
For H-1B workers currently employed at companies undergoing layoffs, the situation creates dual jeopardy: they face the same risk of being laid off as their U.S. counterparts, while their employer's ability to maintain or sponsor new H-1B positions simultaneously comes under heightened scrutiny.
Part of a Broader H-1B Crackdown
The latest orders followed a slew of policies adding new hurdles for H-1B employers and workers, who predominantly work in tech-related occupations.
The September 18 executive order was accompanied by a separate proclamation.
It accompanied a separate proclamation extending the $100,000 payment policy for certain H-1B petitions to September 21, 2027.
The fee policy remains vacated; the extension should also remain blocked, subject to judicial clarification.
The broader landscape has been one of escalating restrictions.
The Trump administration's initial six-figure charge for some H-1B workers led to a sharp drop in demand from the program's biggest users in the IT staffing and tech industries. Visa lottery entries fell this year by 85 to 100% for firms most heavily impacted by the White House proclamation.
A contemporaneous announcement by the Department of Labor Inspector General touting recent actions suspending visa applications from two technology companies, a video from the Chair of the EEOC, and a spate of recent DOJ resolutions under the INA paint a sobering picture for U.S. employers.
What Comes Next
All eyes now turn to the agencies tasked with implementing this directive. The DOL's October 18 deadline to begin reviewing previously filed LCAs will be the first concrete benchmark. Whether USCIS, the State Department, and CBP issue formal guidance—and what that guidance looks like—will determine how this order transforms from a policy signal into operational reality.
The administration's actions are likely to increase scrutiny of companies that rely heavily on H-1B workers, particularly technology and outsourcing businesses, as federal agencies expand coordination over employment and immigration data.
Employers sponsoring H-1B workers—especially those that have undergone or are contemplating workforce reductions—should consult experienced immigration counsel immediately to assess their exposure and develop compliance strategies. Clinch Law Firm will continue monitoring developments as agency guidance is released.