On September 18, 2026, the Trump Administration announced two significant actions affecting employers that sponsor H-1B workers: an Executive Order directing heightened scrutiny of H-1B employers, particularly those that have implemented layoffs, and a Presidential Proclamation extending restrictions on the entry of certain H-1B workers through September 21, 2027.
Together, the actions signal continued federal scrutiny of the H-1B program through increased enforcement, interagency coordination, and restrictions on the admission of certain foreign workers.
Executive Order Expands Focus on Employer Layoffs
The Executive Order, “Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program,” directs the Departments of Labor (DOL), Homeland Security (DHS), and State (DOS) to consider whether an employer has conducted layoffs within the past year or anticipates future layoffs affecting similarly situated U.S. workers when adjudicating H-1B matters.
That scrutiny will extend across the H-1B process: labor condition application (LCA) certifications, U.S. Citizenship and Immigration Services (USCIS) petition adjudications, consular visa interviews, and inspections at U.S. ports of entry.
Potential Expansion Beyond Current Nondisplacement Rules
Current nondisplacement requirements generally apply only to H-1B-dependent employers and certain employers with prior immigration violations. Those requirements also generally focus on displacements occurring within a relatively narrow period surrounding the H-1B filing.
The order would significantly expand the scope and timeframe of that review. It directs agencies to consider layoffs affecting similarly situated U.S. workers during the preceding year, as well as anticipated future workforce reductions. The directive is not limited to H-1B-dependent employers or employers with a history of violations and appears to apply to all H-1B sponsors.
The Administration has not explained how agencies will evaluate layoffs, what evidence employers may be required to provide, or how the findings may affect H-1B adjudications.
DOL to Review Prior Filings
The DOL has the most immediate action item. Within 30 days, its Wage and Hour Division must begin reviewing previously filed LCAs to determine whether enforcement action is warranted under existing statutory authority.
The order also establishes an interagency framework requiring DOL, DHS, and DOS to coordinate with other federal agencies when evaluating labor market, wage, education, and industry data.
Proclamation Extends H-1B Entry Restrictions Through September 2027
In a separate action issued the same day, President Trump extended restrictions on the entry of certain H-1B workers through September 21, 2027. The proclamation extends restrictions first imposed in September 2025 affecting certain H-1B workers who are outside the United States.
$100,000 H-1B Fee Remains Blocked
The proclamation extends the $100,000 payment requirement for certain H-1B petitions, but employers are not currently required to pay that fee because a federal court order continues to block its collection. That ruling is on appeal.
As a result, the proclamation’s extension does not result in immediate $100,000 fee obligations while the injunction remains in effect.
Separately, DHS has a pending rulemaking proposal that would impose a $103,265 fee for cap-subject H-1B petitions. If finalized, that fee would be separate from the proclamation’s $100,000 fee requirement.
For now, neither fee is being collected. Employers should continue to monitor the litigation and rulemaking because developments in either could substantially increase H-1B sponsorship costs.
What Employers Should Do Now
The new actions make it important for employers to review H-1B compliance and workforce decisions together. Employers should:
- Review recent and planned workforce reductions. Assess layoffs within the past year and anticipated reductions for potential overlap with H-1B-sponsored positions.
- Review job descriptions and specialty occupation analyses. Confirm that posted requirements accurately reflect the role.
- Review LCA and public access file compliance. Identify potential gaps in wage documentation or posting requirements.
- Examine third-party placement arrangements. Employers placing H-1B workers at client sites should prepare for greater scrutiny.
- Prepare for increased government contact. Designate internal contacts and establish protocols for requests for evidence, site visits, and investigations.
- Evaluate future budgeting considerations. Track litigation and rulemaking developments that could affect H-1B sponsorship costs and long-term workforce planning.
The Bigger Picture
Neither the order nor the proclamation immediately changes H-1B eligibility requirements or current filing procedures. Both actions, however, underscore the federal government’s renewed focus on H-1B enforcement, employer compliance, and workforce reduction practices.
Additional impacts are likely to emerge through agency guidance, audits, investigations, and rulemaking. Employers that sponsor H-1B workers should assess compliance and prepare for heightened scrutiny.
For more information, assistance assessing the potential impact on your organization, or tailored guidance, please contact the Immigration Team at Alston & Bird.
If you have any questions, or would like additional information, please contact one of the attorneys on our Immigration team.
You can subscribe to future advisories and other Alston & Bird publications by completing our publications subscription form.