In an effort to target H-1B visas, the US Department of Labour launched "Project Firewall" on Friday.
The action, which coincides with President Donald Trump's signing of an executive order mandating payment of $100,000 with each H-1B petition, is in line with his "America First" agenda in the labour market.Officials said "Project Firewall" will punish those who abuse the H-1B program while protecting American workers' pay and employment chances.
The Department of Labor's Project Firewall initiative aims to prevent US firms from abusing the H-1B visa program.
By closely examining businesses that employ foreign labour, particularly in high skilled industries like technology, it aims to protect American workers.
Project Firewall may result in increased scrutiny, higher expenses, and more stringent compliance requirements for tech firms and other businesses that significantly depend on H-1B workers.
It is being promoted as a protection against job displacement for American workers.
Trump's new $100,000 annual H-1B fee and Project Firewall could change the IT sector by making it more expensive for US companies to hire foreign workers, especially Indians, who make up almost three-quarters of all H-1B grantees.
This entails increased costs, more stringent hiring procedures, and potential delays in important projects that require specialised engineers and programmers for Silicon Valley behemoths and IT services companies.
As the US fights international competitors in AI, semiconductors, and advanced technology, the crackdown runs the risk of widening the talent gap and harming innovation and competitiveness, as American colleges continue to produce insufficiently skilled workers to satisfy demand.
The program is in line with Trump's plan to prioritise American workers and his promise to reduce the number of foreign worker permits.
The timing, which coincides with his executive order, indicates a concerted effort.
