US Vice President JD Vance has announced a significant administrative crackdown on companies seeking H-1B visa workers after laying off domestic staff. The move is framed as a crucial measure to safeguard American professionals from being replaced by cheaper foreign labor.
Vance criticized corporations that claim labor shortages while simultaneously downsizing their American workforces. “If you’re laying off American workers, you shouldn’t be going to the market searching for foreign workers to replace them,” Vance stated, adding that such practices are “ridiculous.”
H-1B Program's Intent and Misuse
The Vice President emphasized that the H-1B program was never intended to undercut domestic salaries. He highlighted wage disparities, noting that the program should not facilitate replacing a $60,000 accountant with a foreign worker earning $45,000. Instead, the H-1B visa should bring in top-tier talent that significantly enriches the American economy and its technological ecosystem.
Vance reiterated this stance on social media, stating, “Our message to corporate America is simple: We’re not going to let you lay off American workers so you can replace them with cheap foreign labor.”
Executive Actions and Policy Framework
This administrative push follows an executive order signed by President Donald Trump on September 18, 2026. The order directs federal agencies, including the Department of Labor, Department of Homeland Security, and the State Department, to factor in recent or planned layoffs of similarly situated US workers when evaluating H-1B petitions.
As part of this expanded oversight, the Labor Department’s Wage and Hour Division is tasked with auditing past labor condition applications to identify potential violations. Vance explained that the administration chose administrative action over legislative routes due to congressional gridlock, seeing it as the most direct way to address fraud and ensure the program targets high-skilled talent rather than driving down wages.
Financial Restrictions and Past Precedent
The administration’s strategy also includes a $100,000 payment requirement for covered H-1B petitions involving workers outside the country. This restriction, which includes a national-interest exception, was extended by President Trump in September 2026 through September 21, 2027.
Vance’s recent statements are consistent with his long-standing criticism of corporate hiring practices. In July 2025, he publicly condemned companies like Microsoft Corp. for laying off thousands of American employees while simultaneously filing applications for foreign talent through the visa system.
The overarching goal, Vance stressed, is to restore the H-1B system to its original mandate: to enrich the American economy with specialized talent, not to replace American workers with low-wage foreign labor.