Proclamation Expands H-1B Restrictions to Safeguard American Jobs

(UNITED STATES) President Trump on Friday issued a sweeping proclamation to restrict entry of certain H-1B visa workers for 12 months starting 12:01 a.m. EDT on September 21, 2025, unless employers pay a $100,000 fee per petition or qualify for a national interest exception. The White House framed the move as a response to alleged abuse of the program that, it says, has driven wage suppression, displaced U.S. workers, and created national security risks. The restriction applies to beneficiaries of H-1B petitions who are currently outside the United States and seek to enter during the effective period.

Legal authority and stated rationale

The proclamation invokes sections 212(f) and 215(a) of the Immigration and Nationality Act, arguing that immediate limits are needed to protect American workers and address what the administration calls systemic misuse of the H-1B visa. Citing labor market trends in science, technology, engineering, and math (STEM), the order contends some employers have used the program to hire lower-paid, lower-skilled workers in roles Americans can perform, and that these practices have spread across entire sectors—especially information technology (IT).

What the proclamation does

• The Secretary of Homeland Security must restrict decisions on H-1B petitions for specialty-occupation workers who are outside the United States if the sponsoring employer has not made the $100,000 payment.
• The Secretary of State is directed to verify payment during the visa process and to issue guidance to prevent misuse of B visitor visas by approved H-1B beneficiaries with start dates before October 1, 2026.
• The proclamation stresses coordination between the Department of Homeland Security (DHS) and the Department of State to deny entry to H-1B nonimmigrants if the payment has not been made.

The restriction does not apply where the Secretary of Homeland Security, in the Secretary’s discretion, finds that hiring certain H-1B workers—or all H-1B workers at a company or in an industry—is in the national interest and does not pose a threat to the security or welfare of the United States. In practice, that carveout could cover specific projects, employers, or sectors judged critical to national needs.

Employers are instructed to obtain and retain documentation of the $100,000 payment before filing an H-1B petition for a worker outside the country. Visa officers must confirm receipt and approve only those cases where payment has been made.

Key timing and review provisions:

• The order applies only to entries after the effective date and is set to expire 12 months later unless extended.
• No later than 30 days after the next H-1B lottery concludes, the Secretaries of State, Labor, and Homeland Security, together with the Attorney General, must recommend to the President whether to extend or renew the entry restriction.

Directed rulemaking and program shifts

The proclamation directs two major regulatory actions:

1. The Secretary of Labor must begin rulemaking to revise H-1B prevailing wage levels.
2. The Secretary of Homeland Security must start rulemaking to prioritize admission of higher-skilled and higher-paid H-1B workers.

Both steps are presented as part of a plan to shift the program toward the “best of the best” and away from lower-wage hiring that the administration argues drives wage suppression. These rulemakings will proceed through standard notice-and-comment procedures before any final changes take effect.

Economic and security arguments cited

The administration supports the proclamation using labor market data and case examples:

• Foreign STEM workers in the U.S. allegedly rose from 1.2 million in 2000 to almost 2.5 million in 2019, while overall STEM employment grew 44.5% over that span.
• In computer and math occupations, the foreign share increased from 17.7% (2000) to 26.1% (2019).
• IT outsourcing firms are highlighted as heavy users of H-1B: the share of IT workers among H-1B approvals rose from 32% in FY 2003 to an average of over 65% in the last five fiscal years.
• Research cited indicates companies can save about 36% on “entry-level” H-1B tech roles compared with full-time traditional workers—creating incentives to close internal IT teams, lay off American staff, and outsource functions.

Unemployment and wage arguments:

• A Federal Reserve Bank of New York study is noted with unemployment rates of 6.1% for computer science majors and 7.5% for computer engineering majors ages 22–27—more than double rates for recent biology and art history graduates.
• Unemployment in computer occupations reportedly rose from an average of 1.98% (2019) to 3.02% (2025).
• A cited 2017 study suggests that, without the importation of foreign workers into computer science, wages for American computer scientists in 2001 would have been 2.6% to 5.1% higher and employment 6.1% to 10.8% higher.

Security and abuse concerns:

• The proclamation links labor concerns to national security, noting investigations into H-1B-reliant outsourcing companies for visa fraud, money laundering, racketeering conspiracy, and other offenses.
• Officials describe cases where American IT workers were laid off, asked to train incoming H-1B workers who would replace them, and sign nondisclosure agreements for severance—presented as evidence the program is not always used to fill genuine shortages.
• The administration warns these practices could discourage Americans from entering STEM fields and threaten long-term U.S. leadership in critical industries.

Overall, the order aims to impose higher costs on companies using the H-1B system while maintaining a pathway for firms to recruit top global talent under stricter limits.

Immediate practical impact on employers and workers

In the near term, the most immediate effects fall on employers seeking to bring new H-1B workers from abroad during the 12-month window. Companies that proceed face three main choices:

1. Pay $100,000 per worker;
2. Seek a national interest determination from DHS; or
3. Delay onboarding until after the restriction ends (unless it is extended).

The proclamation says the government will coordinate enforcement of the payment requirement and deny entry where payment has not been made.

For H-1B beneficiaries outside the U.S. with approved petitions and start dates inside the restricted period:

• Visa officers will verify payment and approve only those cases tied to the $100,000 fee or a national interest determination.
• The State Department’s guidance to curb B visa misuse signals tighter scrutiny of attempts to use visitor visas for early entry before employment begins.

Industry consequences and expected scrutiny

• Industry reactions were not included in the proclamation, but the policy raises direct questions for staffing models built around offshore and onshore outsourcing.
• Analysis by VisaVerge.com suggests the focus on wage suppression and national security will likely drive intense scrutiny of H-1B hiring plans—especially for high-volume users.
• Employers will closely watch forthcoming guidance on the national interest exception and what evidence will be required.

Where to look for authoritative updates

For those following program rules, official resources remain essential. The USCIS H-1B program page outlines core eligibility and petition steps for specialty occupation roles and will be the place to watch for updates on implementation and related rulemaking by DHS and DOL.

• Authoritative resource: USCIS H-1B program page

Timing, enforcement, and legal notes

• The proclamation requires an interagency recommendation on whether to extend or renew the entry restriction no later than 30 days after the completion of the next H-1B lottery.
• The order states it creates no enforceable rights and must be implemented consistent with law and available appropriations.

Implications by stakeholder

• For American STEM graduates: The administration argues the policy will open more entry-level jobs and raise pay by reducing reliance on lower-wage H-1B hiring.
• For high-skilled foreign professionals: The order creates new short-term barriers unless employers invest heavily or secure a national interest finding.
• For sectors struggling to recruit specialized talent domestically: The planned wage-based prioritization could eventually favor higher-paid roles even as lower-wage placements face tighter limits.

The White House frames this approach as addressing a broader debate over the H-1B visa: whether it fills genuine skill gaps or, as the administration argues, has too often facilitated replacement of U.S. workers and suppressed wages. By linking labor market concerns to national security, the proclamation seeks to present program changes as both an economic and a security imperative for the United States 🇺🇸.