The US administration has intensified its push against the H 1B visa programme. The US Labour Department is investigating fraud, worker exploitation and other abuses, using subpoenas and search warrants. Officials suggest the foreign labour system could look very different within a year.
A new executive order now requires agencies to consider recent or planned layoffs when reviewing visa applications. The order also highlights alleged misuse by outsourcing firms that replace American workers with cheaper foreign staff. In addition, a $100,000 payment requirement has been extended for certain petitions involving workers outside the US. A separate proposal to impose a $103,265 fee has sparked industry concerns about lost federal revenue.
Vice President JD Vance has warned companies against laying off local employees and replacing them with foreign hires, signalling tighter restrictions ahead. His warning follows an 18 September presidential directive that agencies must weigh layoffs of similar American workers when reviewing petitions. The Labour Department is also reviewing Labour Condition Application data.
The $100,000 fee extension runs through September 2027, though a federal court ruled it unlawful in June and the case is under appeal. Meanwhile, the White House says registrations from large IT outsourcing firms have dropped 92 per cent.
Indians, who historically make up about 71 per cent of H 1B beneficiaries, are expected to feel the impact first. Approvals for six major Indian IT companies fell nearly 40 per cent in FY26.
The crackdown is reshaping the visa landscape, with new rules, falling approvals, and rising costs. For Indian professionals and IT firms, the changes could alter career paths, business models, and even US India economic ties.