45th U.S. President Donald Trump has signed an executive order that bans federal agencies from hiring foreign workers especially those on H-1B visa on contracting or subcontracting.


The unprecedented move is followed by a month old announcement by the Trump administrator on 23 June where the administration announced that the H-1B visas along with other types of foreign work visas will remain suspended until the end of 2020 to protect American workers in a crucial election.

This new restriction took effect from 24 June. Also recently a federally owned corporation in the United States called Tennessee Valley Authority in a press release announced that the company will outsource 20% of its technology jobs to companies based in foreign countries. Through this new announcement, the United States was going to witness another 200 American workers losing their jobs over the coming five year.

New rule

The new order makes it compulsory for all federal agencies to carry out an internal audit to assess whether they are in compliance with the requirement of appointing only United States citizens and nationals to competitive service. The United States Department of Labor will also issue guidance to prevent H-1B employers from moving H-1B workers to other employer’s job sites to displace American workers.

The need for the new order

Recently President Trump in a news briefing to United States reporter stated that the H-1B visa was never meant for top highly paid talent to create American jobs, not as inexpensive labour programmes and destroy American job. He also mentioned that amidst this global pandemic which has already cost millions of Americans their jobs, outsourcing hundreds of workers is especially detrimental.

Coming up

Donald Trump administration is also keen on discussing an immigration bill which will be merit based. The bill will be great for the worker and for the people who will legally enter into the nation wanting to help the country.

Trump Impose restrictions on H1B Visa Trump Impose restrictions on H1B Visa