WASHINGTON (RAJEEV SHARMA): The Trump administration has kept its $100,000 H-1B payment requirement in place for another year, extending a measure that has significantly altered the way US employers recruit foreign professionals for specialised jobs.
A presidential proclamation signed by Donald Trump extends the restrictions introduced in September 2025 until September 21, 2027. Under the renewed rules, covered H-1B workers who are outside the United States generally cannot enter the country unless the employer’s petition is accompanied or supplemented by a $100,000 payment. Limited exemptions can be granted when the Department of Homeland Security determines that hiring is in the national interest.
The White House said the original measure has already changed hiring patterns across the H-1B programme. According to the administration, more than 700 petitions have involved the $100,000 payment since the policy came into effect last year.
Administration points to sharp drop in outsourcing registrations
The extension comes alongside the administration’s broader effort to tighten oversight of the H-1B system.
The White House argues that some employers, particularly IT staffing and outsourcing companies, had been using the programme to bring in lower-paid foreign workers and, in some cases, replace US employees. The administration says the changes are intended to shift the programme towards highly skilled and highly paid workers.
It has cited a 92 per cent decline in H-1B registrations by the largest IT outsourcing firms as evidence that the policy has altered recruitment patterns. The administration also says the combination of the payment requirement and a new weighted selection system has increased the share of higher-skilled applicants.
Fresh scrutiny for employers
Trump has also signed a separate executive order directing federal agencies to examine employers’ recent or planned layoffs of similarly situated US workers when considering H-1B applications.
The order calls for greater coordination among the Departments of State, Labour and Homeland Security, with additional input from Commerce, Education and the Small Business Administration. It also directs the Labour Department to review data from previously submitted labour-condition applications for possible further action.
Indian professionals remain closely affected
The continuation of the payment requirement is particularly significant for Indian technology professionals, who make up a substantial share of the H-1B workforce.
For employers seeking to bring eligible workers from outside the US, the financial requirement will remain an important consideration for another year. The proclamation also requires senior officials from the State, Justice, Labour and Homeland Security departments to review the policy after the next H-1B lottery and recommend whether it should be extended again.
The administration maintains that the restrictions are necessary to address what it describes as wage suppression, fraud and misuse of the programme. The policy, however, remains part of a broader and continuing debate over how the United States should balance protection of domestic workers with employers’ demand for specialised international talent.
