The Trump administration has intensified its crackdown on H-1B visa programs with the launch of 175 investigations into potential abuses of the system. This move comes as part of broader efforts to protect American jobs amid growing concerns about foreign worker programs.
Project Firewall: A New Front in Visa Enforcement
The Department of Labor initiated Project Firewall in September following the signing of a proclamation that imposed a substantial $100,000 one-time fee on H-1B visa petitions. This amounts to approximately INR 88 lakhs for companies seeking to sponsor foreign workers through the program.
Labor Department Secretary Lori Chavez-DeRemer emphasized the administration's commitment to this initiative, stating to Fox News that her department is utilizing every available resource to combat H-1B visa abuse. "For the first time, I am personally certifying investigations into suspected violations to better protect American jobs," Chavez-DeRemer declared.
Clarifications and Legal Challenges
On September 19, the Trump administration officially imposed the new $100,000 fee on new H-1B petitions, which companies must pay when sponsoring applicants. The proclamation specifically announced 'restrictions on entry of certain nonimmigrant workers' as part of the broader immigration reform.
However, the US Citizenship and Immigration Services later clarified that the substantial fee would not apply to applicants seeking either a 'change of status' or 'extension of stay'. This clarification came amid growing confusion about the scope and implementation of the new regulation.
The administration's move has not been without controversy. The policy change prompted immediate legal action from various stakeholders, including unions, employers, and religious organizations, who filed challenges in a federal court in California.
Impact on Indian Professionals and IT Sector
The White House provided data showing a significant shift in H-1B program demographics, noting that the share of IT workers grew from 32 percent in Fiscal Year 2003 to an average exceeding 65 percent over the last five fiscal years. Administration officials specifically pointed to IT outsourcing companies as being among the most prolific H-1B employers.
According to USCIS statistics, Indian nationals constitute approximately 71 percent of all approved H-1B applications in recent years, highlighting the potential disproportionate impact of these changes on Indian professionals seeking opportunities in the United States.
Despite these significant regulatory changes, some major Indian companies appear resilient. Last month, Warren Harris, CEO and Managing Director of Tata Technologies, indicated that the fee hike would have no short-term impact on his firm. "We are not an India-out company. We were very much a global company, with the majority of our employees in different territories who were nationals of those countries," Harris told PTI.
The Department of Labor has maintained that its primary focus remains protecting American workers while ensuring the legitimate use of visa programs for specialized talent that cannot be sourced domestically.
