President Trump Issues Executive Order and Directing Heightened Enforcement for H-1Bs; Also Extends H-1B $100,000 Fee

On September 18, 2026, President Trump signed an Executive Order directing federal agencies to increase oversight and enforcement of the H-1B program rules. The Order does not immediately change H-1B eligibility requirements, but it signals heightened scrutiny of H-1B employers, particularly those with recent layoffs, third-party placement models, or significant reliance on foreign national talent.

Increased Focus on Layoffs

A key focus of the Order is whether an H-1B petitioner has:

• Conducted layoffs of similarly situated U.S. workers within the previous year
• Plans future layoffs that may negatively affect comparable U.S. workers

Agencies must consider these factors when reviewing LCAs, H-1B petitions, visa applications, and admissions decisions.

The Order does not create an automatic bar following layoffs, but employers should expect additional scrutiny where workforce reductions involved professional, technical, or specialty occupation roles.

Expanded Government Coordination

The Order directs the Departments of State, Labor, and Homeland Security to coordinate with Commerce, Education, and the Small Business Administration in evaluating H-1B matters.

This coordination may give adjudicators broader access to wage, labor market, education, and economic data when assessing H-1B compliance.

Review of Existing H-1B Employers

Within 30 days, the Department of Labor must begin reviewing previously filed LCAs to determine whether enforcement action against sponsoring employers may be warranted.

The Administration identifies concerns involving:

• Displacement of U.S. workers
• Misclassification of positions as specialty occupations
• Misrepresentations regarding job duties or requirements
• Wage-related compliance issues
• Questions regarding foreign educational credentials

Employers should therefore be prepared for increased audits and enforcement activity.

Future Regulatory and Policy Changes Expected

The Order authorizes agencies to issue regulations, policy guidance, and operational directives to implement its objectives. Although no immediate regulatory changes were announced, future measures could affect H-1B adjudications, specialty occupation standards, employer compliance obligations, third-party placement arrangements, and prevailing wage enforcement.

Overall, the Executive Order is an enforcement and policy directive—not an immediate regulatory overhaul. Still, it signals a clear intent to intensify scrutiny of H-1B employers and prioritize U.S. worker protections. Employers that sponsor foreign national employees, particularly in technology, consulting, staffing, and outsourcing, should anticipate more compliance reviews and rigorous adjudications in the months ahead.

Extension of H-1B $100,000 Fee

The President also issued a proclamation extending the H-1B $100,000 fee for another year, through September 2027. However, it is important to note that a federal district court vacated the $100,000 fee in June 2026; therefore, it is not currently in effect. USCIS has indicated they will comply with the court order, but anecdotally there have not been many cases that would have been subject to the fee actually adjudicated since the court order vacating the fee. Litigation is ongoing, and it remains to be seen if the $100,000 fee will be reinstated in the future. The proclamation underscores the Administration’s position that the fee should be in effect.

Clark Hill will continue monitoring agency guidance and implementing regulations and will provide updates as additional details become available.

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