H-1B Rules: The United States (US) has tightened scrutiny of H-1B visa applications filed by companies that have recently laid off American workers. The new H-1B visa rules 2026 have added another layer of compliance checks for employers sponsoring foreign professionals and made it difficult for them to secure jobs in the US.
The change comes from an executive order signed by President Donald Trump on September 18, directing the Department of State, Labor, and Homeland Security to consider whether an H-1B sponsoring employer has laid off similarly situated US workers during the previous year or plans layoffs that could affect them.
US H-1B Rules 2026: JD Vance Signals Tougher Scrutiny Of Companies Hiring Foreign Workers
The H-1B visa was created in 1990 under then-President George HW Bush, and was introduced to help American companies fill jobs requiring specialized skills with overseas talent.
Now, under Donald Trump’s administration, entry for foreigners is becoming more difficult. Amid this backdrop, US Vice President JD Vance has signalled tougher scrutiny of companies seeking to hire foreign workers as the administration moves to protect the interests of American workers.
“The H-1B should not exist to replace American workers with low-wage foreigners. It should exist to enrich the American economy,” Vance said.
The order calls for greater coordination with the Departments of Commerce and Education and the Small Business Administration. This can provide information on wages, employment conditions and industry trends while agencies assess H-1B applications, labor condition applications and petitions.
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How US H-1B Rules Will Affect Indian Professionals?
The policy will affect the entry of Indian professionals into the US workforce. According to the latest USCIS report on H-1B characteristics, people born in India accounted for roughly 71% of approved H-1B petitions in fiscal year 2024. On the other hand, for China the number remains much lower at only 12%.
The new scrutiny is directed particularly at sponsoring employers rather than at Indian professionals. Companies that have reduced their US workforce could face stricter, tighter scrutiny when seeking to sponsor H-1B workers for comparable positions.
This could impact Indian professionals already in the US, especially when their employment ends. Under the current rules, eligible H-1B workers can generally receive a discretionary grace period of up to 60 days after employment ends to find another qualifying job or take other permitted immigration action.
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H-1B $100,000 Payment Adds To Vis Pressure
The US administration’s H-1B visa overhaul also includes a separate $100,000 payment requirement for certain petitions. The restriction has been extended through September 21, 2027, with limited exceptions. This includes cases deemed to be in the national interest.
The White House says the measure is intended to curb what it describes as abuse of the program. In particular where employers or outsourcing firms use lower-paid foreign workers to displace Americans.
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Summing Up
As per new directives, US agencies will now increase scrutiny for H-1B sponsors that have recently laid off American workers in similar roles. The move adds to a series of changes in the H-1B visa rules 2026 that could affect Indian tech professionals and IT companies.
