US President Donald Trump has signed an executive order aimed at increasing oversight of the H-1B nonimmigrant visa program, citing widespread abuse by employers and outsourcing firms. The order, titled “Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program,” was issued on September 18, 2026. Alongside this directive, the President extended a $100,000 H-1B visa fee for an additional year, maintaining the higher cost through September 21, 2027.
The White House contends that the H-1B program, originally intended to bring highly specialized foreign talent into the US, has been misused to replace skilled American workers with lower-paid foreign labor. According to the order, H-1B visa holders in reliant industries earn between $9,000 and $20,000 less than their US-born counterparts, despite statutory requirements for equal pay. The administration stated, “The abuse of cheaper H-1B labor places downward pressure on domestic pay. H-1B visa holders earn far less than comparable United States-born workers, despite the statutory mandate that H-1B workers be paid equally to their domestic peers, with the estimated wage gap starting at $9,000 and climbing as high as $20,000 in H-1B reliant industries.”
Data cited in the order indicates that technology sector employers requested hundreds of thousands of H-1B visas while simultaneously laying off between 800,000 and 1.3 million American employees between 2022 and 2026. The administration further alleged that some companies required laid-off American staff to train their foreign replacements. Additionally, the order highlighted that the top six H-1B users in the outsourcing sector accounted for over 25,000 cap registrations in fiscal year 2026, with the White House noting that some officials have characterized the program as an “outsourcing visa.”
Beyond economic concerns, the administration framed the alleged systematic abuse as a national security issue, noting that law enforcement agencies have investigated H-1B-reliant firms for visa fraud, money laundering, and other illicit activities. The order warns that such practices may discourage Americans from pursuing careers in science and technology, potentially threatening US leadership in these sectors.
To address these issues, the order mandates increased coordination between the Departments of State, Labor, Homeland Security, Commerce, and Education, as well as the Small Business Administration. These agencies are directed to share economic and employment data to ensure compliance with the Immigration and Nationality Act. Immigration authorities must now consider whether a sponsoring employer has conducted recent layoffs or plans future ones that could negatively impact US workers. Furthermore, the Department of Labor’s Wage and Hour Division has been instructed to begin reviewing past labor condition applications within 30 days to determine if further enforcement actions are necessary.
