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President Donald J

President Donald J. Trump signed a new Proclamation on Friday that significantly reshapes the H-1B visa program. The measure restricts the entry of certain foreign workers and introduces a mandatory $100,000 payment per petition, targeting what the administration describes as widespread abuse that displaces U.S. workers and threatens national security.

Key Provisions of the Proclamation

The order introduces several new requirements for employers and agencies involved in the H-1B process:

  • $100,000 Payment Requirement: Any H-1B petition must be accompanied by a $100,000 payment. Petitions without payment will be denied unless exempted in the national interest.
  • Restriction on Entry: Foreign nationals outside the U.S. will be denied entry under the H-1B category if their petition is not backed by the required payment.
  • Exemptions Allowed: The Secretary of Homeland Security can grant case-by-case exemptions in situations deemed to be in the national interest.
  • Verification of Payments: Employers must retain records proving remittance. The Secretary of State will verify payment during petition processing, and both the Departments of State and Homeland Security will enforce compliance, including denying entry for non-payment.
  • Joint Guidance: The Departments of Labor and Homeland Security are tasked with issuing joint rules for verification, audits, enforcement, and penalties.
  • Wage Level Revision: The Secretary of Labor has been directed to revise prevailing wage levels for H-1B positions.
  • Prioritization of Skilled Workers: The Secretary of Homeland Security will begin rulemaking to ensure priority for highly skilled and high-paid H-1B applicants.

White House: Combating H-1B Abuses

The administration argues that the H-1B program, initially intended to bring in specialized talent, has increasingly displaced American workers:

  • The proportion of IT jobs held by H-1B workers has grown from 32% in FY 2003 to over 65% in recent years.
  • Unemployment among U.S. graduates has risen, with 6.1% for computer science majors and 7.5% for computer engineering graduates — more than double the rates for biology or art history majors.
  • From 2000 to 2019, the number of foreign STEM workers in the U.S. more than doubled, while overall STEM employment only grew 44.5%.

The administration also cited examples of companies allegedly relying heavily on H-1B workers while cutting American jobs:

  • One company received approvals for 5,189 H-1B visas in FY 2025 while laying off about 16,000 U.S. employees this year.
  • Another firm was approved for 1,698 H-1B workers in FY 2025 but announced 2,400 layoffs in Oregon in July.
  • A third employer cut 27,000 American jobs since 2022 while receiving 25,075 H-1B approvals.
  • Yet another company eliminated 1,000 American jobs in February, even as it obtained 1,137 H-1B approvals for FY 2025.

Reports have also surfaced of U.S. IT workers being required to train foreign replacements under nondisclosure agreements, which the White House cites as evidence of systemic abuse.

“American workers are being undercut by cheaper foreign labor, and this is not just an economic issue — it is a national security concern,” the proclamation stated.

Prioritizing American Workers

The administration framed the proclamation as part of Trump’s broader agenda to put American workers first:

  • Trade Deals & Tariffs: Trump has renegotiated trade agreements and imposed tariffs under Section 232 to protect U.S. industries from unfair competition and overcapacity.
  • Employment Gains: Since Trump returned to office, the White House claims all employment gains have gone to American-born workers, contrasting it with last year under President Biden, when gains went to foreign-born workers.
  • Protecting Workforce Programs: The administration has issued new rules preventing illegal immigrants from accessing federal workforce development programs, ensuring training and grants are reserved for U.S. citizens.

What’s Next

The $100,000 payment requirement takes effect immediately, with enforcement coordinated by the Departments of Labor, State, and Homeland Security. While exemptions are possible, the administration has signaled it intends to use this policy aggressively to discourage overreliance on foreign workers and push companies to hire domestically.

By raising costs for employers, Trump’s team argues that the measure will curb abuse, increase wages for American workers, and reduce national security risks. Critics, however, are expected to challenge the policy in courts, similar to earlier disputes during Trump’s first term.

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