Trump Signs New Executive Order Against Hiring H1B Visa Holders

President Trump signed an executive order preventing federal agencies from contracting or subcontracting foreign workers — mainly those on H-1B visa — from hiring.

The move came over a month after the Trump administration on June 23 suspended the H-1B visas along with other types of foreign work visas until the end of 2020 to protect American workers in a crucial election year. The new restrictions took effect from June 24.

Trump told reporters that his administration would not tolerate the firing of hardworking Americans in the pursuit of cheap foreign labor.

The executive order requires all federal agencies to complete an internal audit and assess whether they are in compliance with the requirement that only American citizens and nationals are appointed to the competitive service. As a result, the Department of Labour will also finalize guidelines to prevent H-1B employers from moving H-1B workers to other employers' job sites to displace American workers.

According to the White House, Trump's actions will help combat employers' misuse of H-1B visas that were never intended to replace qualified American workers with low-cost foreign labor. One of the participants presents during the signing of the order told the president that as many as 70% of the H-1B visa goes to people from India.

Trump said he favors a merit-based immigration system that brings in high-skilled people that creates jobs inside the US and not take jobs of Americans.