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Trump’s New Executive Order Puts H-1B Related Workforce Cuts Under Federal Review
For years, H-1B sponsors were judged mostly on wages, job descriptions and paperwork. A new executive order adds a sharper question: did you lay off American workers first? On September 18, 2026, President Trump issued Executive Order 14431, directing the Departments of Labor, Homeland Security and State to weigh layoffs in H-1B processing. The order was published in the Federal Register on September 23.
Our EB-1A experts have presented a detailed analysis of this important update and what it means for the H-1B applicants and the sponsoring companies.
What the order actually does
The order makes three moves. First, the three lead agencies must coordinate with the Commerce and Education Departments and the Small Business Administration, which are to supply wage, employment, academic and industrial data. Fragomen’s analysis notes this pulls in a broad range of federal economic data that agencies do not usually use in H-1B cases.
Secondly, agencies must consider whether a sponsoring employer “directly or indirectly engaged in layoffs within the previous year” or plans layoffs hurting similarly situated U.S. workers. That review covers petitions, Labor Condition Applications (LCAs) and visas.
Thirdly, the order looks backward. Within 30 days, the Labor Department’s Wage and Hour Division must begin reviewing previously submitted LCAs to decide whether action against employers is warranted. Practitioners put that deadline at about October 18, 2026. The order also delegates authority to issue rules and guidance to carry it out.
The administration’s case and the executive order
The order’s opening section argues that the program has been widely abused by certain employers, third-party placement groups and outsourcing firms. It cites an estimated wage gap of $9,000 to as much as $20,000 in H-1B-reliant industries. It also says technology employers laid off between 800,000 and 1.3 million American workers from 2022 through 2026 while requesting H-1B visas for hundreds of thousands. In its telling, some forced laid-off Americans to train their foreign replacements, and the top six outsourcing-model users accounted for over 25,000 fiscal 2026 cap registrations. It also frames the alleged abuse as a national security threat.
These are the administration’s own assertions. The text does not name the studies behind the figures, so readers should treat them as claims rather than independently verified findings.
What the executive order does not do
Lawyers stress that this is not a ban. The order does not prohibit an employer from filing an H-1B petition after layoffs, though cuts could be scrutinized in petitions, extensions, visa stamping and entry.
Clark Hill calls it an enforcement and policy directive, not an immediate regulatory overhaul. Ogletree adds that it does not, on its face, amend the Immigration and Nationality Act or the H-1B regulations.
The existing law already has narrower layoff rules. “H-1B dependent” employers and willful violators must attest they have not displaced similarly employed U.S. workers within 90 days before and after filing. In the green card process, employers with layoffs in the previous six months face extra obligations.
Littler’s Carissa Tyler notes the order “does not address how compliance will be investigated or enforced.”
Lawyers weigh in on the new order
Reaction has centered on the associated uncertainty. Edward Raleigh of Fragomen said the directive articulates a “whole of government” approach to H-1B violations that should put businesses on notice. Sairah Saeed of Manifest Law said employers should expect “increased scrutiny by USCIS”, especially if they have had or plan layoffs. Fragomen’s Mitch Wexler cautioned, “It is not yet clear how the immigration agencies will implement these provisions.”
Not everyone expects a big impact. Immigration attorney Jonathan Wasden told Bloomberg Law the order will ultimately have little effect, especially for the tech companies behind the largest layoffs.
Legal challenges may follow. Ellis George’s analysis says Congress already wrote H-1B layoff rules that are much narrower than the order. Critics argue the President cannot add an eligibility rule Congress never wrote, and that the one-year lookback and “indirect” layoffs exceed the statute. No court has ruled on the order yet.
The wider crackdown
The order arrived alongside yet another proclamation. It extends the $100,000 payment requirement for certain H-1B cases for another year, through September 2027, though the fee remains blocked by a court order. Immigration lawyer Cyrus Mehta stresses that the two measures do different work: one adds a layoff inquiry, the other continues an entry restriction.
Gibson Dunn places both in a longer campaign. DHS has proposed a $103,265 fee for new cap-subject petitions, after a federal court struck down the earlier fee in June 2026. The Labor Department’s Inspector General announced a major H-1B and PERM fraud investigation on July 8, and on September 8 announced the first enforcement actions, suspending processing for two technology companies.
What employers are being told
Ellis George suggests employers keep a record of layoffs from the past year and be able to show how an H-1B role differs from any eliminated position. Littler warns that employers should expect possible requests for evidence about layoffs and more investigations. As of late September, no agency had changed H-1B forms or filing steps because of the order.
At GCEB1, our EB-1A consultants are cautiously tracking all the latest developments in the US immigration landscape. Get in touch with us for personalized mentorship on merit based green cards. We wish you a safe and stress free immigration journey ahead.
Frequently Asked Questions
1. What is Executive Order 14431?
It is a September 18, 2026 order directing the State, Labor and Homeland Security Departments to consider employer layoffs when handling H-1B petitions, LCAs and visas.
2. Does it ban H-1B filings after layoffs?
No. Littler says the order does not prohibit filing after layoffs, but the layoffs may be scrutinized.
3. How far back do agencies look?
One year, plus planned future layoffs.
4. Which layoffs count?
Those that negatively affect “similarly situated” U.S. workers, whether done directly or indirectly. The order does not define these terms.
5. What is the 30-day deadline?
The Labor Department must begin reviewing previously filed LCAs within 30 days, around October 18, 2026.
6. Has the law changed?
Not on its face. Agencies must still issue guidance, and no court has ruled on the order.
7. Is this the same as the $100,000 fee?
No. That was a separate proclamation signed the same day. It extends the fee, which a court has blocked.
8. Who is most exposed?
Employers with recent or planned layoffs, third-party placement models, or heavy reliance on foreign workers.
9. What should employers do now?
Document layoffs, explain how sponsored roles differ from cut positions, and consult immigration counsel.
Sources and Further Readings
- Badmus & Associates. “H-1B Scrutiny Just Got Tougher: What the New Executive Order Means If Your Company Has Layoffs.” Accessed September 30, 2026. https://badmuslaw.com/blog/h-1b-scrutiny-just-got-tougher-what-the-new-executive-order-means-if-your-company-has-layoffs/.
- Bloomberg Law. “White House H-1B Order Puts Employer Layoffs Under Microscope.” Daily Labor Report, September 22, 2026. https://news.bloomberglaw.com/daily-labor-report/white-house-h-1b-order-puts-employer-layoffs-under-microscope.
- Clark Hill. “Trump Order Signals Increased H-1B Enforcement Scrutiny.” Accessed September 30, 2026. https://www.clarkhill.com/news-events/news/publications-trump-executive-order-h1b-enforcement-scrutiny/.
- Ellis George. “The New H-1B Executive Order: How Employer Layoffs Now Affect H-1B Petitions in 2026.” Accessed September 30, 2026. https://www.ellis.com/resources/h1b-executive-order-layoffs-2026.
- Executive Order 14431. “Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program.” Federal Register 91 (September 23, 2026): 60501–3. https://www.federalregister.gov/d/2026-19555.
- Fragomen, Del Rey, Bernsen & Loewy LLP. “New Executive Order Directs Federal Agencies to Consider Layoff Activity and Labor Market Data in H-1B Adjudications.” Accessed September 30, 2026. https://www.fragomen.com/insights/united-states-new-executive-order-directs-federal-agencies-to-consider-layoff-activity-and-labor-market-data-in-h-1b-adjudications.html.
- Gibson Dunn. “Executive Order on H-1B Program Is Latest Sign of Immigration Program Risks for Employers.” Accessed September 30, 2026. https://www.gibsondunn.com/executive-order-on-h-1b-program-is-latest-sign-of-immigration-program-risks-for-employers/.
- Manifest Law. “Executive Order Adds Layoff Scrutiny to H-1B Review.” September 24, 2026. https://manifestlaw.com/news/h-1b-layoff-news-09-24-26.
- Mehta, Cyrus. “Additional H-1B Barriers Outside the Statute: The September 18 Executive Order on Layoffs and the Extension of the $100,000 Proclamation.” Insightful Immigration Blog, September 21, 2026. https://blog.cyrusmehta.com/2026/09/additional-h-1b-barriers-outside-the-statute-the-september-18-executive-order-on-layoffs-and-the-extension-of-the-100000-proclamation.html.
- Ogletree Deakins. “Executive Order Calls for Interagency Review of Employer Layoffs in H-1B Filing Process.” Accessed September 30, 2026. https://ogletree.com/insights-resources/blog-posts/executive-order-calls-for-interagency-review-of-employer-layoffs-in-h-1b-filing-process/.
- Tyler, Carissa. “Executive Order Directs Agencies to Consider Layoffs in H-1B Adjudication.” Littler, September 28, 2026. https://www.littler.com/news-analysis/asap/executive-order-directs-agencies-consider-layoffs-h-1b-adjudication.
