Amid H-1B debate, US companies told to hire Americans or face fines

The Trump Administration has vowed to intensify its crackdown on H-1B visa abuses under an initiative called "Project Firewall", aiming to ensure that employers follow visa rules and give priority to qualified American workers over foreign hires. The initiative is part of a broader effort to protect US jobs and wages, particularly in industries where H-1B visas are widely used. Indians are the biggest beneficiaries of the temporary work visa programme.

The development has come in the wake of allegations that there is rampant fraud in the H-1B visa programme, particularly at the Chennai consulate.

Under Project Firewall, the Department of Labor (DOL), in coordination with agencies including the Equal Employment Opportunity Commission (EEOC), the United States Citizenship and Immigration Services (USCIS), and the Department of Justice (DOJ), will step up enforcement against employers suspected of misusing H1B visas.

This is a significant development in federal oversight of H-1B visas, coming amid debates over the role of highly skilled immigrants in the US workforce and as President Donald Trump's stance on visas collides with factions of his own political base (MAGA), Newsweek reported.

Employers found misusing H-1B visas may face serious penalties, including back-pay orders, fines, or temporary bans from hiring foreign workers through the programme.

US FEDERAL AGENCIES UNITED TO CRACK DOWN ON H-1B VISA ABUSES

The DOL has announced expanded federal enforcement targeting discrimination against American workers related to the H-1B visa programme, which allows US employers to temporarily hire foreign workers in speciality occupations, according to the report.

"The ongoing project ensures employers prioritise qualified Americans when hiring and includes enforcement actions to hold employers accountable if they abuse the H-1B visa programme," the DOL said in a statement on Monday.

DOB Deputy Secretary Keith Sonderling said agencies united to safeguard worker rights and ensure fair hiring.

"The EEOC's announcement underscores the importance of federal agencies working in concert to uphold the rights of workers. By sharing data, clarifying employer obligations, and aligning enforcement tools, we are better positioned to prevent discriminatory hiring practices and protect labor market integrity," said Keith Sonderling.

This comes amid significant shifts in H-1B visa distribution. The number of H-1B visas awarded to India-based companies has dropped sharply, with just three firms making it into the top 25 for approved petitions in 2025.

LAYOFF OF AMERICANS, MORE H-1Bs CAN TRIGGER PROBE

Red flags that could trigger an investigation include sudden layoffs of US workers immediately followed by the hiring of H-1B employees, according to Boundless, a US-based immigration services firm.

Other warning signs involve significant discrepancies between the wages posted on Labor Condition Applications (LCAs) and the actual pay employees receive.

Employers are now under pressure to maintain wage integrity and proper reporting.

For workers, this means the H-1B pathway, long seen as a gateway to global careers, might soon come with stricter checks but also fairer ground.

Project Firewall reflects the Trump administration’s broader policy stance on immigration and work visas, which has consistently emphasised prioritising American workers in employment decisions. While the programme aims to prevent abuse, it also signals a significant shift in how the federal government monitors and enforces H-1B visa regulations.

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