Vice President JD Vance issued a stern warning to U.S. companies today, saying the White House will scrutinise any firm that fires American workers to replace them with H‑1B visa holders. The order mandates that sponsors disclose their employment history; firms that fired U.S. workers and hired H‑1B candidates face penalties.
Department of Labor inspector‑general Anthony D’Esposito echoed Vance’s tone, stating, “Lay off Americans to hire cheaper foreign labor? Expect us to come knocking.” His remarks signal a tougher enforcement stance that could trigger investigations and civil actions against non‑compliant employers.
The administration’s fight against H‑1B abuse stretches back to a $100,000 fee introduced last year, which a court struck down, only to be renewed. Washington now proposes an additional fee of $103,265, which remains unimplemented but signals a larger fiscal pressure on sponsors.
Data from the White House show that prior to the 2025 proclamation, unemployment among recent computer‑science graduates stood at 6.1% and engineering graduates at 7.5%, double rates for other majors. Since the proclamation, H‑1B registrations by the largest IT outsourcing firms have plunged 92%, and consular processing requests have dropped 97%. The policy has nudged companies toward higher‑wage, higher‑skill foreign talent.
The order also replaced the random lottery with a wage‑based system, ensuring that only the highest‑paying positions are awarded H‑1B visas. This change is expected to tighten the labor market for foreign workers while protecting domestic employment.
Implementation kicks off next month, with the Department of Labor preparing compliance guides. Firms must submit employment histories by September 30, or face audits and potential penalties. Legal challenges are likely, but the administration has indicated it will pursue enforcement aggressively.