On September 18, 2026, President Trump signed two significant actions targeting the H-1B visa program: a presidential proclamation extending the controversial $100,000 H-1B payment requirement for another year, and a separate executive order that introduces a new layer of employer scrutiny tied to workforce layoffs. Together, the measures represent the administration's most aggressive push yet to reshape how companies hire skilled foreign workers — though one of the two policies remains legally blocked.
Here's what employers, H-1B workers, and prospective applicants need to know.
The Executive Order: Layoffs Now Under the Microscope
The executive order, 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 order applies across several stages of the H-1B process, including labor condition applications (LCAs), H-1B petitions, visa applications, and entry into the United States. It directs the Departments of Labor (DOL), Homeland Security (DHS), and State to consider whether a sponsoring employer has engaged in layoffs during the previous year or plans future layoffs that negatively affect "similarly situated" U.S. workers.
Under the order, the Department of Labor will also begin, within 30 days, reviewing data from previously submitted labor condition applications to determine whether additional action against sponsoring employers may be warranted under federal law.
Critically,
the executive order does not itself prohibit employers from laying off U.S. workers and subsequently sponsoring H-1B workers. Instead, it instructs federal agencies to take such layoffs into account when reviewing H-1B-related applications and directs the Labor Department to review previously filed applications for potential violations.
The executive order does not, on its face, amend the Immigration and Nationality Act (INA) or the H-1B regulations.
It leaves significant implementation details to forthcoming agency guidance, which will determine how DOL, DHS, and the State Department incorporate layoff-related information into H-1B adjudications. Information on how the directive will apply in practice is not yet known.
The $100K Fee Extension: Alive on Paper, Blocked in Court
Employers that rely on H-1B visas face more uncertainty after the Trump administration extended a $100,000 payment requirement for certain H-1B workers through September 21, 2027.
This fee was originally signed September 19, 2025, and took effect September 21, 2025, targeting certain new H-1B specialty occupation workers hired from outside the United States. It does not apply to F-1 students changing status inside the U.S., to extensions or renewals for current H-1B holders, or to change-of-employer petitions for beneficiaries already in the country.
However, the practical reality is that this fee cannot currently be collected.
The fee has been unenforceable since late July. U.S. District Judge Leo T. Sorokin vacated the policy June 8, ruling it functioned as a tax the executive branch had no authority to impose without Congress.
Twenty states, led by California and Massachusetts, challenged the policy in federal court, arguing that the Administration exceeded its statutory authority and violated the Administrative Procedure Act (APA).
On July 24, 2026, the First Circuit denied the government's motion for a stay pending appeal. 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 new extension keeps the fee policy alive on paper, but it does not appear to override the court's ruling. As a result, employers are not currently required to pay the $100,000 fee when filing H-1B petitions.
As the law firm WR Immigration (Wolfsdorf) noted,
"the fee policy remains vacated; the extension should also remain blocked, subject to judicial clarification." Employers and universities can continue planning H-1B sponsorship under the current court-ordered framework.
Why the Administration Extended the Fee Anyway
Despite the court block, extending the proclamation serves a strategic legal purpose.
The original proclamation carried a one-year term and would otherwise have lapsed September 21, 2026. Extending it keeps the framework in place, so the fee could take effect quickly if an appeals court rules for the administration.
The White House has pointed to dramatic shifts in H-1B usage as evidence of the policy's effectiveness.
The White House said the largest IT staffing and outsourcing firms cut their combined H-1B registrations from 24,946 to 2,055 between the relevant cap seasons, a 92% decrease.
It also reported a nearly 97% decrease in consular-processing requests from the fiscal year 2025 to fiscal year 2027 cap seasons. At the same time, 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 merits appeal remains pending before the First Circuit, and the government may seek a stay from the Supreme Court. Parallel challenges remain pending in the Northern District of California and before the D.C. Circuit.
What This Means for Employers
The combination of these two actions creates a more complex compliance environment for companies that sponsor H-1B workers, even though only one of the two measures is currently enforceable.
On the layoff review order:
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 who have conducted layoffs within the past year — or who anticipate workforce reductions — should consult with immigration counsel before filing new H-1B petitions.
International students transitioning from F-1 or OPT to H-1B should also pay attention to their prospective employer's situation. The order does not create a new eligibility requirement specifically for F-1 or OPT students, but the compliance history and layoff activity of the sponsoring employer may become more relevant during the H-1B process.
On the $100K fee:
For employers, the court block is welcome news, but it is not the final word. The government is expected to continue pressing its appeal, and the fee's status could shift again depending on further rulings. Employers should treat this as a meaningful development rather than a permanent resolution.
Additionally,
if the asserted concern is concentrated use of the cap by a discrete group of outsourcing firms, a blanket $100,000 payment imposed on covered employers across the economy is a poorly tailored response. It prices out smaller and mission-driven employers while allowing the largest and wealthiest companies to treat the payment as another cost of doing business.
What to Watch Next
Several developments could shift the landscape in the coming months:
- First Circuit merits ruling: The appeals court has not yet issued a final decision on the legality of the $100,000 fee. A ruling for the government could quickly revive the payment requirement.
- Supreme Court intervention: The administration could petition the Supreme Court for an emergency stay if the First Circuit rules against it.
- Agency guidance on layoffs:
- DHS regulatory fee proposal: Separately,
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This article is for informational purposes only and does not constitute legal advice. Individuals and employers affected by these policy changes should consult with a qualified immigration attorney.