Friday, September 25, 2026

Trump Signs Executive Order Targeting H-1B Layoffs

Last week, President Trump signed an Executive Order aimed at curbing abuse of the H-1B program, which has consistently been used by corporations to replace Americans with cheaper foreign workers. 

The Order directs the State Department, Department of Homeland Security (DHS), and Department of Labor (DOL) to take into account whether employers petitioning for H-1B workers have either conducted layoffs of U.S. workers in the past year or plan future layoffs. The Order also separately requires the three agencies to coordinate with the Department of Commerce, Department of Education, and the Small Business Administration (SBA) to ensure compliance with statutory requirements and gives DOL’s Wage and Hour Division 30 days to review previously filed labor condition applications for potential enforcement actions.

Outsourcing firms and tech companies have routinely exploited the H-1B program to displace American workers and drive down wages, typically by replacing them with H-1B workers from countries such as India and China who are paid substantially less for comparable work. The Trump administration has already issued several regulations aimed at reforming the program, including a recently proposed $103,265 fee on certain petitions. 

FAIR continues to support the administration’s efforts to reform the H-1B program. However, Congress must act to permanently reform our laws. Critical FAIR-supported bills such as the American Tech Workforce Act, introduced by Sen. Jim Banks (R-Ind.), and the American White-Collar Worker Jobs Act, introduced by Congressman Chip Roy (R-Texas) would eliminate the Optional Practical Training (OPT) program, ensure that higher paying positions were prioritized, and abuse of the visa to obtain permanent residency.

To read FAIR’s public comment on DOL’s May 2026 prevailing wage rule for the H-1B program, click here.

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