The US Department of Labor on Friday rolled out “Project Firewall”, a new initiative targeting the H-1B visa program. The move, aligned with Donald Trump’s “America First” agenda, coincided with his executive order mandating a $100,000 payment with every H-1B petition.
What is Project Firewall?
Project Firewall is designed to ensure American workers are not displaced by foreign hires. It focuses on rooting out abuse of the H-1B system, particularly in high-skill sectors like technology, where reliance on overseas talent is highest.
Why it Matters
For US tech giants and IT service providers, the program means stricter scrutiny, higher compliance costs, and tougher hiring rules. Since Indians account for nearly three-quarters of all H-1B visas, they are expected to face the brunt of the impact.
- US firms may encounter hiring bottlenecks, rising expenses, and delays in critical projects.
- Analysts warn the crackdown could widen the talent gap, stifling innovation just as the US faces competition in AI, semiconductors, and advanced technologies.
Trump’s Push
The initiative mirrors Trump’s long-standing pledge to prioritise American workers. The timing—launching Project Firewall alongside his executive order—signals a coordinated drive to curb foreign worker visas.
In a Truth Social post, Trump also introduced the “Trump Gold Card”—priced at $1 million for individuals and $2 million for corporations—aimed at generating over $100 billion in revenue for tax cuts, growth projects, and debt reduction.
Oversight & Investigations
For the first time, the Secretary of Labor (Lori Chavez-DeRemer) will personally certify H-1B investigations. Using existing federal authority, the department can probe employers suspected of fraud or non-compliance, triggered by “reasonable cause.”
Penalties for Violators
- Repayment of back wages
- Civil fines
- Temporary bans from the H-1B program
Multi-Agency Coordination
Project Firewall will work with other federal agencies to enforce compliance and prevent discrimination against American workers.
The Bigger Goal
At its core, the initiative reinforces the principle of “Americans First” in the job market—ensuring high-skilled roles go primarily to US citizens.
India Most Affected
With 71% of last year’s H-1B visas granted to Indians (compared to just 11.7% for China), the policy shift is expected to disproportionately impact Indian tech professionals and the firms that rely on them.
