On September 18, 2026,
President Donald J. Trump signed an Executive Order and a Proclamation to continue to protect what the White House described as "American national and economic security and American workers from abuses of the H-1B visa program."
The dual actions represent the latest chapter in a year-long effort to reshape one of the nation's most consequential employment-based immigration pathways — and they arrive amid active litigation that has, at least for now, blocked the fee's enforcement.
What the New Executive Order Does
The Order enhances program integrity in the H-1B visa program by improving interagency coordination and directing enhanced scrutiny of H-1B visa applications where there is a heightened risk that American workers would be laid off.
In practical terms,
agencies reviewing H-1B-related filings will be instructed to consider whether a sponsoring employer has recently conducted layoffs or plans future workforce reductions that would affect similarly situated U.S. workers.
The order directs the Departments of State, Labor, and Homeland Security to consider whether a sponsoring employer "directly or indirectly" laid off similarly situated U.S. workers within the past year, or plans to do so, before approving H-1B applications.
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.
Notably,
the executive order designates systematic and organized abuse of the H-1B program as "a national security threat," citing domestic law enforcement investigations of H-1B-reliant outsourcing firms for engaging in visa fraud, conspiracy to launder money, and other illicit activities.
An important caveat:
the measure does not state that an employer automatically loses the ability to sponsor H-1B workers after conducting layoffs. Instead, layoffs are now a factor federal agencies must take into account when assessing H-1B cases.
Within 30 days, the Labor Department's Wage and Hour Division must begin reviewing data from previously submitted labor condition applications to determine whether action against sponsoring employers is warranted.
The $100K Fee Extension — and Its Legal Complications
Alongside the executive order,
the September 18 proclamation extends the policy for 12 months beginning at 12:01 a.m. EDT on September 21, 2026.
Restrictions on the entry of certain H-1B workers have been extended through September 21, 2027, and covered petitions generally remain subject to a $100,000 payment requirement unless an exemption or national interest exception applies.
However, the fee faces a formidable legal barrier.
On June 8, 2026, a federal judge blocked the $100,000 fee for H-1B visa applications imposed by the Trump administration, determining that the administration exceeded its authority, and that the fee usurped Congress's power to set immigration policy and taxes.
The court concluded that the administration's implementation of the fee exceeded executive authority and violated governing legal principles, including the Administrative Procedure Act (APA) and constitutional separation of powers.
The U.S. Court of Appeals for the First Circuit subsequently denied the federal government's request to temporarily reinstate the $100,000 H-1B visa fee while litigation continues.
In reaching its decision, the court concluded that the government failed to make a strong showing that it is likely to succeed on the merits of its appeal.
The White House proclamation does not address the litigation.
This creates an unusual dynamic: the administration is extending a policy that federal courts have effectively blocked from enforcement — at least in jurisdictions covered by the First Circuit's ruling.
Administration's Claimed Results
The White House pointed to dramatic shifts in H-1B usage since the original 2025 proclamation.
The largest IT staffing and outsourcing firms reduced their combined H-1B registrations from 24,946 to 2,055, a 92 percent decrease.
There has also been a large reduction in consular processing requests, with a nearly 97 percent decrease from the FY 2025 to FY 2027 cap seasons.
Registrations for beneficiaries with at least a U.S. master's degree increased from 45.1% of registrants for fiscal year 2026 to 66.1% for fiscal year 2027, according to the proclamation.
The proclamation also said employers made the $100,000 payment for more than 700 petitions after the 2025 policy took effect.
Before the 2025 Proclamation, unemployment among recent computer science graduates reached 6.1% and 7.5% for computer engineering graduates — more than double the rates for biology or art history majors,
the White House said, framing the policy as necessary to protect domestic STEM workers.
Practical Implications for Employers and H-1B Workers
For employers, the combined effect of the executive order and proclamation creates several immediate compliance considerations:
Layoff scrutiny.
The executive order directs federal agencies to consider whether an employer has conducted layoffs within the previous year affecting similarly situated workers, plans to implement future layoffs that could affect comparable positions, or has taken actions that may negatively impact employment opportunities for U.S. workers.
Broader data sharing.
The agencies may share wage, employment, academic, and industry information while reviewing applications for specialty-occupation workers,
meaning adjudicators will have access to a wider body of evidence when evaluating petitions.
Fee uncertainty persists.
Employers who paid the $100,000 H-1B fee should retain complete payment records and speak with counsel about whether to pursue recovery.
The judgment does not declare the Proclamation void, and no injunction was entered against giving effect to it. The First Circuit ruled based on a lack of legal authority rather than on a procedural mistake, so a renewed implementation would need a different statutory footing.
For H-1B workers and prospective applicants, the landscape remains deeply uncertain.
Extensions and most transfers are exempt from the fee, so a worker who is already in the U.S. and switching employers or renewing status is not hit by the $100,000 charge.
The burden falls most heavily on new hires being brought in from abroad through consular processing.
What Comes Next
The legal trajectory of the $100,000 fee will likely determine its ultimate enforceability. The First Circuit appeal remains pending, and
the Massachusetts court's ruling conflicts with another district court's ruling in a separate lawsuit that allowed the fee to stand,
setting the stage for potential Supreme Court involvement.
It remains unclear how agencies will weigh economic data, though this could lead to heightened scrutiny of offered wages, job duties, and job requirements — particularly given USCIS's recent expansion of job requirement disclosures on the H-1B petition.
Immigration attorneys broadly advise employers to take several steps: audit H-1B wage and public access file compliance; review labor condition application records; examine third-party placement arrangements; and establish internal protocols for responding to government inquiries. Companies that have recently undergone layoffs should be particularly attentive to how those reductions may be viewed when pending or future H-1B petitions are adjudicated.
For now, the $100,000 fee remains legally blocked but administratively extended — a paradox that underscores the volatile intersection of executive power, congressional authority, and judicial oversight that continues to define H-1B policy in the Trump era.
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This article is provided for informational purposes only and does not constitute legal advice. Individuals and employers with questions about how these developments affect their specific circumstances should consult a qualified immigration attorney.