Trump Executive Order Triggers Interagency Scrutiny of Employer Layoffs In H-1B Visa Process

President Trump signed an executive order on September 18, 2026, directing three federal departments to coordinate more closely on H-1B visa programme administration.

The order instructs the U.S. Departments of Labor, Homeland Security, and State to factor employer layoffs into the H-1B filing and adjudication process going forward.

Under the directive, agency secretaries must consider whether a sponsoring employer conducted layoffs within the prior year or plans future layoffs affecting similarly situated U.S. workers.

Employers could face additional scrutiny at multiple stages, including Labor Condition Application review, USCIS petition adjudication, consular visa issuance, and border admission.

The H-1B programme allows U.S. employers to temporarily hire foreign nationals in specialty occupations, with certification from the Department of Labor generally required.

Certain H-1B-dependent employers and willful violators already face nondisplacement obligations covering layoffs within a ninety-day window before and after an H-1B petition filing.

The new executive order extends that scrutiny significantly, reaching layoffs during the prior year and planned future workforce reductions, rather than the existing ninety-day period alone.

It may also apply to all H-1B employers, not only those classified as H-1B-dependent or deemed willful violators under current statute.

The order, titled “Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program,” does not directly amend the Immigration and Nationality Act or existing H-1B regulations on its face.

Instead, it authorises implementing rules, policies, and operational guidance to incorporate layoff and labour-market information into H-1B administration consistent with existing law.

The Department of Labor’s Wage and Hour Division has been instructed to begin reviewing already-submitted Labor Condition Applications within 30 days to assess whether enforcement action is warranted.

Employers who have recently conducted or are planning a reduction in force involving roles similar to sponsored H-1B positions may need to address those circumstances directly within their filing records.

The executive order was announced alongside a proclamation renewing the administration’s previously imposed $100,000 H-1B fee requirement for certain petitions, further raising the cost burden for sponsoring employers.