THE U.S. DEPARTMENT OF LABOUR (DOL) - "PROJECT FIREWALL"
What’s New
On September 19, 2025, President Donald Trump signed a proclamation that will require a $100,000 annual fee for each H-1B visa application.
This fee is to be paid by the sponsoring employer. It is significantly higher than the current fees, which are only a few hundred to a few thousand dollars depending on the situation.
The policy applies not only to new H-1B applications but also to renewals/extensions.
Effective date mentioned is September 21, 2025.
Why This Is Being Done (Admin’s Justification)
According to the Trump administration:
To discourage misuse or over-use of the H-1B visa for jobs that could be done by U.S. workers. They argue that many companies hire skilled foreign workers at wages lower than what equivalent U.S. workers would demand.
To make sure H-1B visa holders are really highly skilled or indispensable, not filling entry level or lower wage roles.
To shift some of the burden onto employers so they more carefully assess whether a foreign hire is necessary.
Key Details & Unknowns
It is not completely clear how this fee interacts with or replaces existing fees (for lottery registration, petition filing, etc.).
Whether there will be exemptions (for universities, nonprofits, certain startup/early-stage companies, etc.) is not yet fully detailed.
How this will be enforced, how transitions for ongoing H-1B holders will be managed (if at all), and whether legal challenges might delay or block parts of this.
What is Project Firewall
-
Official Launch: The U.S. Department of Labor (DOL) announced Project Firewall on September 19, 2025.
-
Core Purpose: It is an enforcement initiative aimed at preventing misuse of the H-1B visa program — making sure highly skilled jobs go to qualified Americans first, and protecting wages, rights, and job opportunities of U.S. workers.
-
Leadership & Authority:
-
The Wage and Hour Division (DOL), the Office of Immigration Policy, and the Employment and Training Administration will lead implementation.
-
For the first time, the Secretary of Labor will personally certify the initiation of investigations when there is reasonable cause that an employer is violating H-1B rules.
-
Key Features / How It Works
-
Investigations & Audits
-
Employers suspected of not complying with H-1B visa regulations will be investigated.
-
Secretary-certified investigations give the DOL heightened oversight power.
-
-
Penalties for Violations
If abuses are found, the DOL can impose penalties including:-
Back wages owed to affected workers.
-
Civil money penalties.
-
Debarment from the H-1B program for some period for repeat or serious offenders.
-
-
Coordination Among Agencies
-
The DOL will work with other federal partners such as the Department of Justice’s Civil Rights Division, the Equal Employment Opportunity Commission (EEOC), and U.S. Citizenship and Immigration Services (USCIS).
-
Shared information, coordination to detect fraud, abuse, and discrimination.
-
-
Compliance Assistance
-
Employers will have resources to help them stay compliant. The Wage and Hour Division offers assistance and has made available a toll-free number for questions.
-
Motivations / Policy Context
-
This fits within the broader “America First” stance under the current U.S. administration, which emphasizes protecting American jobs, especially in segments that rely on foreign skilled labor.
-
There has also been concern over perceived abuses in the H-1B system: underpayment, displacement of U.S. workers, misuse of visa rules, etc. Project Firewall is meant to address those concerns.
-
The same time, other policy changes are being introduced (e.g. a $100,000 fee for H-1B applications) which amplify the regulatory pressure.
Potential Impacts & Challenges
Impacts
-
On Foreign Nationals / H-1B Workers
-
Higher scrutiny of employers sponsoring H-1Bs might lead to slower visa processing or more rejections if compliance isn’t clean.
-
Costs for employers may increase (both in fees and in compliance overheads).
-
For many Indians and others who constitute a large share of H-1B beneficiaries, this could change job prospects or change employer behavior.
-
-
On U.S. Employers (especially tech / skilled industries)
-
Companies using H-1B talent will need tighter compliance to avoid penalties or debarment.
-
Likely more legal/labor cost overhead, perhaps shifting hiring practices.
-
Potential risk of talent shortages if companies are less willing to navigate stricter rules, or if the foreign skilled labor pool shrinks.
-
-
On U.S. Workers
-
Intended benefit: to ensure qualified U.S. workers have better access to skilled jobs and are not undercut by visa misuse.
-
May lead to improved enforcement of wage standards and rights for those on H-1B too.
-
Challenges & Risks
-
Defining “Qualified Americans”: what counts as priority, what level of skill, education, etc. Clear criteria will be essential.
-
Resource and Capacity Constraints: DOL, USCIS, EEOC, DOJ will need adequate staff, funding, expertise to investigate, monitor, enforce.
-
Legal Pushback: Employers or industry groups may challenge debarments, fees, or definitions in court.
-
Global Competitiveness: U.S. innovation, especially in sectors like tech / AI, often depends on international talent. Overly strict rules could hamper that.
-
Administrative burden: It may create bureaucratic delays, especially if investigations are frequent or overlap.
Key Things to Watch
-
How “reasonable cause” is interpreted; that determines when Secretary certification triggers investigations.
-
How much rise in application costs or fees beyond the existing changes (e.g., the $100,000 fee) will affect IOUs, startups, universities.
-
The number of debarments or employers penalized — that will signal how aggressive enforcement is.
-
Reaction from industry (e.g. tech companies, consulting firms) and from foreign governments whose citizens participate heavily in the H-1B program (e.g. India).
-
Whether this causes shift in U.S. immigration / labor policy — e.g. more domestic training or incentives to grow U.S. skilled labor supply.Here’s a detailed breakdown of the newly announced U.S. policy that introduces a $100,000 fee for H-1B visas for highly skilled foreign workers — what it is, why it’s being done, the reactions, and what it could mean. If you want, I can also do a version focused more from the Indian perspective.
Reactions & Criticism
-
Business / Tech Sector: Likely to push back heavily. Companies that depend on H-1B workers (especially tech, consulting, engineering) may argue this will dramatically raise costs and reduce competitiveness.
-
Immigration Advocates: Many see this as a barrier for talented foreign professionals, particularly those early in their careers or from lower-wage sectors, who won’t be able to command salaries or positions justifying this cost.
-
Legal Concerns: Some experts say such a high fee may be legally vulnerable, since fees for immigration are usually governed by statutes (i.e. Congress) and are supposed to be cost-based or justified.
-
Comments
Post a Comment