United States Restricts Certain H-1B Nonimmigrant Workers Amid Alleged Program Abuses

By Steve Rey – The New York Diplomat

Washington, D.C. – In a major policy shift, the U.S. President has announced restrictions on the entry of certain H-1B nonimmigrant workers, citing systemic abuses of the visa program that have allegedly displaced American workers and undermined both economic and national security.

Background on the H-1B Program

The H-1B visa program was originally designed to bring highly skilled temporary workers to the United States in areas of shortage, particularly in science, technology, engineering, and mathematics (STEM). However, according to the proclamation, some employers have exploited the program to replace American workers with lower-paid foreign labor, distorting wage structures and creating challenges for U.S. graduates seeking entry-level employment in technical fields.

Data cited in the proclamation highlights that between 2000 and 2019, the number of foreign STEM workers in the U.S. more than doubled, from 1.2 million to nearly 2.5 million, while overall STEM employment grew only 44.5 percent. Within IT and computer-related occupations, the share of foreign workers rose from 17.7 percent to 26.1 percent over the same period.

Alleged Consequences for American Workers

The proclamation emphasizes that some technology companies have used the H-1B system to reduce labor costs. For example, IT outsourcing firms reportedly offer H-1B positions at significantly lower wages than comparable American roles, sometimes incentivizing layoffs of U.S. employees. Several cases are cited where companies received approvals for thousands of H-1B visas while simultaneously announcing large-scale layoffs of American staff.

Recent labor statistics underscore the impact: computer science and computer engineering graduates have faced unemployment rates of 6.1 percent and 7.5 percent, respectively, more than double that of graduates in other fields such as biology or art history. In addition, unemployment in computer occupations rose from 1.98 percent in 2019 to 3.02 percent in 2025.

Policy Measures Announced

Under the new restrictions, employers seeking to sponsor H-1B workers must pay a $100,000 supplemental fee unless exceptions are granted in the national interest. These measures are intended to deter misuse of the program while maintaining access to top-tier foreign talent.

The proclamation also calls for revisions to prevailing wage levels and prioritization of high-skilled, high-paid H-1B applicants, aligning the program more closely with its original intent: filling positions for which qualified American workers are unavailable.

National Security and Economic Implications

The President’s statement frames the abuses of the H-1B program as a potential national security threat. Investigations have reportedly uncovered visa fraud, money laundering conspiracies, and other illicit activities among H-1B-dependent outsourcing companies. Furthermore, the influx of lower-paid foreign labor is said to discourage Americans from pursuing STEM careers, potentially threatening long-term U.S. leadership in critical technological sectors.

Looking Ahead

The restrictions will take effect on September 21, 2025, and are set to last for 12 months, subject to review. Federal agencies, including the Departments of State and Homeland Security, will oversee compliance and ensure that only qualifying petitions with the supplemental payment are approved.

The administration has framed the policy as a balance between safeguarding American labor markets and maintaining access to exceptional global talent in high-demand fields.