Executive Order Alert: H-1B Wage Fraud USCIS Investigation Crackdown 2026

On September 18, 2026, President Trump signed an Executive Order titled 'Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program.' The order responds to alleged systemic abuse of the H-1B program by employers and outsourcing firms, citing an estimated $9,000–$20,000 wage gap between H-1B workers and comparable U.S.-born workers, and claims that employers laid off between 800,000 and 1.3 million American workers from 2022 through 2026 while continuing to file H-1B petitions. The order introduces three major structural changes. First, it mandates interagency coordination, requiring the Secretaries of State, Labor, and Homeland Security to consult with Commerce, Education, and the Small Business Administration when reviewing H-1B petitions, labor condition applications (LCAs), and visas. This adds new data sources — including wage records, educational credentials, and industry data — to the adjudication process. Second, and most operationally significant, agencies must now factor in employer layoff history. Any employer that has conducted layoffs within the past 12 months or has planned reductions in force will face elevated scrutiny on H-1B petitions. Employers must document specifically why each H-1B role is distinct from any eliminated position. Third, by October 18, 2026, the Department of Labor's Wage and Hour Division must begin retrospectively reviewing previously submitted LCAs to assess whether penalties or debarment are warranted under INA § 212(n)(2)(G). For employers who also sponsor EB-3 workers, this enforcement climate has direct implications. The same employers facing H-1B scrutiny — particularly those with recent layoffs — may face heightened DOL review of their PERM labor certifications, which share similar prevailing wage and labor market requirements. Employers should audit LCA files to ensure actual wages meet or exceed prevailing wage commitments and that job descriptions accurately reflect current working conditions. Practically, all employment-based immigration sponsors should prepare for longer processing times due to interagency coordination, broader Requests for Evidence, and a more complex adjudication environment. Additional implementing regulations and policy memoranda are expected in the coming months under the broad delegation authority granted by INA § 215(a).