'Shouldn't exist to replace...': Vance warns against replacing laid-off US workers with cheap H-1B labour

US Vice President JD Vance has signaled tougher administrative scrutiny of companies seeking H-1B workers after laying off domestic staff, framing the policy as a vital measure to protect American professionals from being replaced by cheaper foreign labor.

Detailing the administration’s strategy, Vance questioned the rationale of corporations claiming labor shortages while actively downsising their domestic workforces.

“You’ll have a company that applies for an H-1B and they’ll say, ‘Oh, we’re desperate for workers. We can’t find the workers.’ And then you go and look at their history and they’ve laid off 5,000 people. Well, that’s ridiculous,” Vance said. “If you’re laying off American workers, you shouldn’t be going to the market searching for foreign workers to replace them.”

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Vance underscored this stance on X (formerly Twitter), saying, "Our message to corporate America is simple: We're not going to let you lay off American workers so you can replace them with cheap foreign labor."

The Vice President made it clear that the H-1B programme was never intended to undercut domestic salaries. Pointing to wage disparities in skilled professions, he noted, “It's a person that is going to significantly enrich the tech ecosystem or the American economy. You know, you're not just replacing one accountant who makes $60,000 with a lower-wage foreign accountant who makes $45,000 a year. That is not what the programme exists for.”

Executive enforcement & Policy framework  

The administrative drive follows an executive order signed by President Donald Trump on September 18, which instructs federal agencies — including the Department of Labor, the Department of Homeland Security, and the State Department — to consider recent or planned layoffs of similarly situated US workers when evaluating H-1B petitions.

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As part of this expanded oversight, the Labor Department’s Wage and Hour Division has been tasked with auditing past labor condition applications to identify potential violations or enforcement opportunities.

Labor Department Inspector General Anthony D'Esposito issued a stark warning that the foreign labor visa landscape will undergo significant changes over the next year as federal investigators widen a nationwide crackdown into foreign-labor fraud, worker exploitation, and potential human trafficking.

“I think that the foreign labor visa program is going to look very different 365 days from now than it does today,” D'Esposito said in an interview posted by commentator Benny Johnson on X.

Explaining why the administration chose to bypass legislative routes, Vance pointed to gridlock in Congress. “We looked at the fraud in the system,” he said, adding that administrative action offered the most direct path to ensure the program targets top-tier talent rather than driving down wages.

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Vance acknowledged the legal pushback surrounding the executive actions, but expressed confidence in the policy’s standing. “So we're doing a lot within the confines, of course, of what we're allowed to do legally. We've gotten sued on some of this stuff, but I think fundamentally we're on the right on both the law and the policy,” he added.

Financial restrictions & Past precedent  

Alongside tighter review criteria, the administration’s strategy includes a $100,000 payment requirement for covered H-1B petitions involving workers outside the country. President Trump extended this restriction in September 2026 through September 21, 2027, maintaining a national-interest exception.

Vance’s recent statements build on his long-standing criticism of corporate hiring practices. In July 2025, he publicly criticised Microsoft Corp. and other technology companies for laying off thousands of American employees while simultaneously filing applications to recruit foreign talent under the visa system.

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Reiterating the overarching goal of the executive efforts, Vance stated that the system must return to its original mandate. “The H-1B should not exist to replace American workers with low-wage foreigners,” Vance said. “It should exist to enrich the American economy.”