US President Donald Trump on Friday said that abuse of the H-1B visa program poses a “threat to national security” after he signed a proclamation restricting the entry of certain skilled foreign workers. The new order imposes a $100,000 fee on companies hiring these workers to live and work in the United States.
“The abuse of the H-1B programme is also a national security threat. Domestic law enforcement agencies have identified and investigated H-1B-reliant outsourcing companies for engaging in visa fraud, conspiracy to launder money... and other illicit activities to encourage foreign workers to come to the United States,” he said.
Also read: Donald Trump's crackdown on immigration: H-1B visas set to get costlier, work permits for Indians may take a hit – 10 things to know about 'Project Firewall'
The proclamation, titled “Restriction on entry of certain nonimmigrant workers”, limits entry into the US for H-1B workers whose petitions are not accompanied by the $100,000 payment.
'Program originally designed for high-skilled workers '
“The H-1B nonimmigrant visa programme was created to bring temporary workers into the United States to perform additive, high-skilled functions, but it has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labour,” Trump said in the proclamation, as quoted by PTI.
“The severe harms that the large-scale abuse of this programme has inflicted on our economic and national security demand an immediate response. I therefore find that the unrestricted entry into the United States of certain foreign workers would be detrimental to the interests of the United States because such entry would harm American workers, including by undercutting their wages,” the proclamation said.
He added that higher costs for companies are needed to address abuse while still allowing firms to hire “the best of the best temporary foreign workers.”
'Tech and STEM fields most impacted'
“Some employers, using practices now widely adopted by entire sectors, have abused the H-1B statute and its regulations to artificially suppress wages, resulting in a disadvantageous labour market for American citizens, while at the same time making it more difficult to attract and retain the highest skilled subset of temporary workers, with the largest impact seen in critical science, technology, engineering, and math (STEM) fields,” he said.
The proclamation highlighted that IT firms “have prominently manipulated the H-1B system, significantly harming American workers in computer-related fields.” The share of IT workers in H-1B programs grew from 32% in Fiscal Year 2003 to over 65% in the last five fiscal years.
“Some of the most prolific H-1B employers are now consistently IT outsourcing companies ,” the proclamation said.
Challenges for American graduates
Abuse of the program has made it more difficult for US college graduates to find IT jobs, as companies hire foreign workers “at a significant discount to American workers.”
Also read: Big change for H-1Bs: Donald Trump signs proclamation imposing $100k annual fee on visa application; aim to protect US tech jobs
The proclamation cited high unemployment among computer science and computer engineering graduates and noted many American tech companies “have laid off their qualified and highly skilled American workers and simultaneously hired thousands of H-1B workers.”
It also highlighted a software company approved for over 5,000 H-1B workers in FY 2025, which “announced a series of layoffs totalling more than 15,000 employees.”
American IT workers have reported they were forced to “train the foreign workers who were taking their jobs and to sign nondisclosure agreements about this ‘indignity’ as a condition of receiving any form of severance,” the proclamation said.
Implementation and exceptions
The secretary of homeland security will restrict petitions not accompanied by the $100,000 payment for H-1B specialty occupation workers currently outside the US for 12 months after September 21, 2025.
The secretary of state will also issue guidance to prevent misuse of B visas for beneficiaries of approved H-1B petitions with start dates prior to October 1, 2026.
The proclamation clarifies that restrictions do not apply if hiring H-1B workers “is in the national interest and does not pose a threat to the security or welfare of the United States.”
Also read: Donald Trump's 'Gold Card' visa: US rolls out residency scheme costing $1 million; aimed to draw foreign investment
“The abuse of the H-1B programme is also a national security threat. Domestic law enforcement agencies have identified and investigated H-1B-reliant outsourcing companies for engaging in visa fraud, conspiracy to launder money... and other illicit activities to encourage foreign workers to come to the United States,” he said.
Also read: Donald Trump's crackdown on immigration: H-1B visas set to get costlier, work permits for Indians may take a hit – 10 things to know about 'Project Firewall'
The proclamation, titled “Restriction on entry of certain nonimmigrant workers”, limits entry into the US for H-1B workers whose petitions are not accompanied by the $100,000 payment.
'Program originally designed for high-skilled workers '
“The H-1B nonimmigrant visa programme was created to bring temporary workers into the United States to perform additive, high-skilled functions, but it has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labour,” Trump said in the proclamation, as quoted by PTI.
“The severe harms that the large-scale abuse of this programme has inflicted on our economic and national security demand an immediate response. I therefore find that the unrestricted entry into the United States of certain foreign workers would be detrimental to the interests of the United States because such entry would harm American workers, including by undercutting their wages,” the proclamation said.
He added that higher costs for companies are needed to address abuse while still allowing firms to hire “the best of the best temporary foreign workers.”
'Tech and STEM fields most impacted'
“Some employers, using practices now widely adopted by entire sectors, have abused the H-1B statute and its regulations to artificially suppress wages, resulting in a disadvantageous labour market for American citizens, while at the same time making it more difficult to attract and retain the highest skilled subset of temporary workers, with the largest impact seen in critical science, technology, engineering, and math (STEM) fields,” he said.
The proclamation highlighted that IT firms “have prominently manipulated the H-1B system, significantly harming American workers in computer-related fields.” The share of IT workers in H-1B programs grew from 32% in Fiscal Year 2003 to over 65% in the last five fiscal years.
“Some of the most prolific H-1B employers are now consistently IT outsourcing companies ,” the proclamation said.
Challenges for American graduates
Abuse of the program has made it more difficult for US college graduates to find IT jobs, as companies hire foreign workers “at a significant discount to American workers.”
Also read: Big change for H-1Bs: Donald Trump signs proclamation imposing $100k annual fee on visa application; aim to protect US tech jobs
The proclamation cited high unemployment among computer science and computer engineering graduates and noted many American tech companies “have laid off their qualified and highly skilled American workers and simultaneously hired thousands of H-1B workers.”
It also highlighted a software company approved for over 5,000 H-1B workers in FY 2025, which “announced a series of layoffs totalling more than 15,000 employees.”
American IT workers have reported they were forced to “train the foreign workers who were taking their jobs and to sign nondisclosure agreements about this ‘indignity’ as a condition of receiving any form of severance,” the proclamation said.
Implementation and exceptions
The secretary of homeland security will restrict petitions not accompanied by the $100,000 payment for H-1B specialty occupation workers currently outside the US for 12 months after September 21, 2025.
The secretary of state will also issue guidance to prevent misuse of B visas for beneficiaries of approved H-1B petitions with start dates prior to October 1, 2026.
The proclamation clarifies that restrictions do not apply if hiring H-1B workers “is in the national interest and does not pose a threat to the security or welfare of the United States.”
Also read: Donald Trump's 'Gold Card' visa: US rolls out residency scheme costing $1 million; aimed to draw foreign investment
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