White House Cracks Down on H-1B Visa Job Replacement Abuse
Published Date: 9/23/2026
Presidential Document
Summary
This new order cracks down on companies misusing the H-1B visa program, which was meant to bring in highly skilled foreign workers but has been used to replace American workers with cheaper labor. It aims to protect U.S. workers’ jobs and wages by improving how agencies work together and enforce the rules. These changes will start soon and could affect many tech companies and others relying heavily on H-1B workers.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
Layoffs can affect H‑1B approvals
If you are an employer sponsoring H‑1B workers or an H‑1B applicant, agencies must consider whether the sponsor directly or indirectly engaged in layoffs within the previous year or plans future layoffs when deciding labor condition applications, petitions, visas, and entry for H‑1B nonimmigrants. The order cites that H‑1B visa holders earn $9,000 to $20,000 less than comparable U.S. workers and notes employers laid off between 800,000 and 1.3 million American employees from 2022 through 2026.
Labor Department review of past LCAs begins
Within 30 days of the date of this order (the order is dated September 18, 2026), the Secretary of Labor, through the Wage and Hour Division, must begin reviewing previously submitted labor condition applications to determine whether further action against sponsoring employers is warranted under section 212(n)(2)(G) of the Immigration and Nationality Act.
Agencies must share wage and employment data
When processing H‑1B petitions, labor condition applications, and visas, the Secretary of State, the Secretary of Labor, and the Secretary of Homeland Security must coordinate and consult with the Secretary of Commerce, the Secretary of Education, and the Administrator of the Small Business Administration, and those agencies must provide relevant wage, employment, academic, industrial, or other economic information. The order notes that in Fiscal Year 2026 the top six users with outsourcing business models accounted for over 25,000 H‑1B cap registrations.
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Key Dates
Department and Agencies
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