H-1B 2026 Alert: Trump Executive Order Adds Layoff Scrutiny and Extends $100K Proclamation
A September 18, 2026 executive order directs federal agencies to scrutinize employer layoffs at every stage of the H-1B process, while a companion proclamation extends a $100,000 payment requirement for certain H-1B cases for another year.
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," paired with a proclamation extending the controversial $100,000 payment requirement for certain H-1B applicants for an additional year. Together, these measures introduce sweeping new barriers to H-1B employment that go well beyond existing statutory frameworks.
The executive order is notably broad in scope, directing the Departments of State, Labor, and Homeland Security to consider whether an H-1B sponsoring employer has conducted layoffs in the past year—or plans future layoffs affecting similarly situated U.S. workers—at every stage of the H-1B process. This includes not just initial petitions, but also extensions, amendments, changes of employer, visa issuance at consulates, and admission at ports of entry.
Section 2 of the order establishes an interagency consultation framework, requiring the Departments of Commerce and Education and the Small Business Administration to supply relevant wage, employment, and economic data to adjudicating agencies. The Wage and Hour Division has been directed to begin reviewing previously submitted Labor Condition Applications (LCAs) within 30 days to determine whether further action against sponsoring employers is warranted.
Legal experts are raising serious questions about statutory authority. While the order cites INA sections on H-1B classification, LCA requirements, and entry restrictions, none of these provisions expressly authorize agencies to treat prior or planned layoffs as a blanket adjudicative factor. The delegation to issue implementing guidance similarly cannot expand substantive authority beyond what Congress granted.
For employment-based immigration applicants more broadly, these measures signal an increasingly restrictive environment for employer-sponsored visas. EB-3 employers who also sponsor H-1B workers may find themselves subject to heightened scrutiny across their entire immigration portfolio, particularly if they have conducted recent layoffs. Applicants and their counsel should monitor agency guidance expected within 30 days for implementation details.
A California federal court blocked enforcement of the proclamation-based $100,000 H-1B payment requirement on Sept 30, 2026. The ruling — the second such block — bars USCIS, CBP, and the State Department from collecting the fee until proper rulemaking occurs.
The American Immigration Council filed a lawsuit challenging Trump-Vance administration policies that put green card applicants at risk of family separation, raising due process concerns for EB-3 and other employment-based applicants.
The October 2026 Visa Bulletin opened I-485 filing windows for some EB-3 and EB-4 applicants, but filing does not prevent ICE enforcement. BIA precedent in Matter of Ho may require Immigration Judges to hold cases in abeyance when retrogression is the sole barrier to adjustment approval.