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US foreign worker visas face tougher scrutiny as Labor Department signals new action
M
Moneycontrol•05-10-2026, 13:33
Trump Admin Signals Tougher Scrutiny on Foreign Worker Visas, H-1B Program Under Fire
  • •US Department of Labor Inspector General Anthony D’Esposito indicated intensified enforcement against companies using foreign worker visa programs.
  • •Vice President JD Vance called the H-1B program "completely broken" and advocated for its abolition, citing concerns about replacing American workers with cheaper foreign labor.
  • •The administration introduced a $100,000 fee on certain H-1B petitions involving workers outside the US, which has faced legal challenges and an injunction.
  • •An executive directive instructed federal departments to examine H-1B sponsors for recent or planned layoffs of American workers in similar positions.
  • •The administration has also implemented a tiered H-1B selection system that prioritizes higher-paid positions.

Key Questions Answered

The Trump administration has increased scrutiny on foreign worker programs, with Vice President JD Vance calling the H-1B system broken. The administration introduced a $100,000 fee on certain H-1B petitions for workers outside the US, which was extended through September 2027, and implemented a tiered selection system favoring higher-paid positions. Additionally, federal authorities have issued subpoenas and launched investigations into alleged visa fraud.

A federal magistrate issued an injunction on October 1 against the administration's $100,000 H-1B fee after finding that officials failed to follow mandatory administrative rulemaking procedures.

US officials and Vice President JD Vance have criticized employers for allegedly misusing the H-1B program to replace American workers with cheaper foreign labor to reduce labor costs. Vance specifically pointed to scenarios where companies substitute American professionals with lower-paid foreign workers, arguing that this destroys domestic jobs and defrauds the public.