Project Firewall: How Trump’s Enforcement Push Reshapes H-1B Outcomes

(UNITED STATES) The U.S. Department of Labor has launched Project Firewall, a sweeping H-1B enforcement drive announced on September 19, 2025, under President Trump. The initiative places the H-1B program under the most intensive federal scrutiny seen to date, combining aggressive audits, surprise inspections, and deeper coordination with the Department of Justice, USCIS, and the Equal Employment Opportunity Commission.

The Department of Labor says the goal is straightforward: protect U.S. wages, stamp out fraud, and ensure employers follow the law. But for companies that hire high-skilled workers and for H-1B employees whose lives and careers in the United States 🇺🇸 depend on consistent status, the stakes are immediate and personal.

How Project Firewall is structured

• The Secretary of Labor will personally certify investigations when there is “reasonable cause,” elevating political and legal risk for employers.
• The administration paired the enforcement push with a new $100,000 fee on certain new H-1B petitions filed on or after September 21, 2025.
• The measures are slated to run for 12 months, with the option to extend.

Officials describe Project Firewall as a high-visibility crackdown, not a statutory change. No new law has been passed; the Department of Labor is intensifying use of existing tools:
– Labor Condition Application (LCA) process
– Wage standards
– Worksite posting rules
– Record-keeping duties

By ramping up audits and matching data across agencies, the plan aims to spot patterns of underpayment, title downgrades, and sham job placements. The Department of Justice stands ready to pursue charges—such as visa fraud or false statements—if deliberate misrepresentation surfaces.

Enforcement priorities and what investigators will examine

Investigators will focus on common problem areas:

• Wage compliance
  • Whether H-1B employees receive at least the required pay level (the higher of prevailing wage or actual wage for similar U.S. workers).
• Job titles and duties
  • Whether job titles/duties match what was presented to the government.
  • Whether downgrading roles was used to reduce wage costs.
• Worksite compliance
  • Including home offices and remote locations.
  • Whether required notices were posted for each worksite.
• Public access files
  • Whether wage data, notices, and records are accurate and up to date.
• Termination procedures
  • Whether employers offered return transportation when a worker is terminated before the authorized period ends.

These checks protect wages and prevent cost-cutting through misclassification.

“This is designed as a deterrent,” according to analysis by VisaVerge.com — an effort that not only punishes bad actors but nudges all employers toward tighter compliance systems.

Interagency coordination and cascading effects

Project Firewall emphasizes interagency data-sharing, increasing the odds that one finding could trigger additional actions:

• A DOL audit could lead to a Department of Justice referral for criminal charges if fraud is suspected.
• A site visit could prompt USCIS to reopen or recheck an approval.
• The EEOC may step in if evidence suggests discrimination.

While each agency operates under its own authority, Project Firewall is designed to knit the pieces together into a more forceful, coordinated response.

Risks and penalties for employers

Employers face significant potential consequences:

• Back pay orders
• Civil money penalties
• Debarment (a ban on using the H-1B program for a set period)
• Reputational damage, especially for public companies and federal contractors

The Department of Labor signaled that audits may be unannounced and that remote arrangements will receive close scrutiny. Policies that passed in lighter enforcement eras may no longer suffice without careful documentation.

Impact on H-1B workers

Project Firewall introduces immediate stress points for workers:

• Surprise visits and document requests from multiple agencies can create uncertainty about status, roles, and timelines.
• Findings of underpayment or mismatched duties may delay extensions or transfers and could, in extreme cases, lead to visa revocation or removal proceedings if fraud is proven.
• The Department of Labor says it will shield workers who report abuse and treat retaliation as a serious offense; however, many workers still fear job loss or jeopardizing their immigration status.

The $100,000 fee: purpose and scope

According to VisaVerge.com, the $100,000 fee:
– Is designed as both a cost signal and a funding mechanism for stepped-up oversight.
– Does not apply to current H-1B holders filing routine extensions or certain amendments, per the administration’s summary.
– Took effect for filings on or after September 21, 2025.

Businesses that rely heavily on H-1B hiring say the fee could reshape staffing plans — particularly for mid-sized firms — potentially leading to:
– Prioritizing U.S. hires where possible
– Offshoring specialized roles to avoid risk

Those shifts could change where engineering, data, and product teams are located.

Compliance actions employers should take now

The Department of Labor’s message: invest in robust compliance programs. Practical steps include:

1. Verify wage levels and update them when promotions, location changes, or market shifts occur.
2. Review job titles and duty statements to ensure they match actual work.
3. Confirm remote-work arrangements match what was filed.
4. Train HR and legal teams to maintain meticulous records and to respond quickly to audits.
5. Maintain a public access file for each H-1B worker and post required notices for all covered worksites.

Many companies are already:
– Conducting internal reviews of H-1B portfolios
– Running mock audits across junior, mid-level, and senior roles
– Appointing single points of contact for H-1B compliance

Policy details — pay, classification, worksites, and termination

• Pay: H-1B workers must be paid the required wage—the higher of prevailing wage or actual wage paid to similar U.S. workers. Wage mismatches due to role evolution or relocation are treated as compliance failures.
• Job classification: Filing a role at a lower level than its actual duties (to save wage costs) can trigger back wages and penalties and prompt other agencies to question the petition’s accuracy.
• Worksites: Remote and hybrid work increases complexity; notices must be posted for each worksite, and public access files must be kept current.
• Termination: Employers must offer return transportation to the worker’s last foreign residence if employment ends early and must document that offer.

Practical checklists

For employers (sample actions):
– File and maintain an up-to-date LCA (ETA-9035).
– Keep thorough public access files and proof of posted notices.
– Keep records of offers for return transportation when needed.
– Prepare a response plan for surprise audits.

For workers (sample checklist):
– Keep copies of pay stubs, offer letters, and role-change communications.
– Request a current letter confirming duties, salary, and primary worksite.
– If location changes, confirm HR updated records and posted notices.
– Consider confidential legal advice before filing complaints if retaliation is a concern.

Resources

• Department of Labor H-1B program page for the Labor Condition Application: H-1B Program and Form ETA-9035 — this explains the LCA process, record expectations, and how to prepare for reviews.

Broader effects and political context

• Supporters argue tougher oversight will raise wages and protect U.S. workers while still allowing specialized hires.
• Critics worry compliant employers will be caught in technical violations, and skilled workers may relocate to countries with steadier policies.
• The initiative aligns with the administration’s “America First” theme and has some bipartisan roots due to longstanding concerns about H-1B misuse.
• The Secretary of Labor’s personal certification of investigations signals leadership-level commitment.

Timeline and outlook

• Project Firewall announced: September 19, 2025
• $100,000 fee effective for certain filings: September 21, 2025
• Measures set for 12 months, with the possibility of extension

During that period, expect guidance, enforcement actions, and interagency activity. Because no new law was passed, agencies must operate within existing rules — and courts may be asked to adjudicate disputes over agency actions or penalties.

Final takeaway

Project Firewall raises the enforcement bar for H-1B compliance. For employers, the safest course is to audit now and fix gaps fast. For workers, awareness and documentation are essential. For policymakers, the challenge will be balancing strict enforcement with preserving U.S. competitiveness for high-skilled talent.