The President signed an executive order directing federal agencies to increase interagency coordination in the H-1B nonimmigrant visa program.
The order, signed Sept. 18, 2026, and published in the Federal Register on Sept. 23, 2026, states that the H-1B program has been abused by some employers, outsourcing firms and third-party placement groups to displace skilled United States workers. The document says this abuse places downward pressure on domestic pay, estimating a wage gap of $9,000 to $20,000 in industries reliant on the program.
The order directs the departments of State, Labor and Homeland Security to consider certain employer actions when processing petitions, labor condition applications and visas. These agencies must take into account whether a sponsoring employer directly or indirectly engaged in layoffs within the previous year, the order says. The agencies must also consider whether an employer plans future layoffs that negatively affect the employment of similarly situated United States workers.
The order requires the processing agencies to coordinate with the Commerce and Education departments and the Small Business Administration to ensure compliance with statutory requirements. The directive states that those three agencies shall provide relevant wage, employment, academic, industrial or other economic information.
According to the order, domestic law enforcement agencies have investigated some H-1B-reliant outsourcing firms for visa fraud, money laundering conspiracy and other illicit activities. The document describes systemic abuse of the program as a national security threat that discourages Americans from pursuing careers in science and technology.
Within 30 days of the Sept. 18 signing date, the Labor Department’s Wage and Hour Division must begin reviewing data related to previously submitted labor condition applications, the order says. The administrator will use this review to determine whether further action against sponsoring employers is warranted.