H1-B Visa Holders Can't Be Hired For Federal Contracts: Here's How Donald Trump's Move Will Affect US-Based Indian Workers And Companies

Team Latestly
·2-min read

Washington, August 4: US President Donald Trump, who has taken a slew of measures to promote his "Hire American" agenda, on Monday signed an executive order preventing federal agencies from contracting or subcontracting foreign workers, mainly H1-B visa holders. The new restrictions took effect from June 24. This has come as a fresh blow to Indian IT professionals who comes to the US for jobs on H1-B visa. Donald Trump Suspends H1B And Other US Work Visas Till End of 2020; Here's How It Will Affect Workers From India.

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"Today I am signing an executive order to ensure that the federal government lives by a very simple rule, higher American," Donald Trump told reporters in the Oval Office of the White House before signing the order against hiring H1B visa holders for federal contracts. Earlier, he suspended the H-1B visas along with other types of foreign work visas until the end of 2020 to protect American workers ahead of the presidential elections. H-1B Visa Suspension by Donald Trump: India Assessing Impact on Its Nationals, Says MEA.

The H1-B visa, most sought-after among Indian IT professionals, is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. The US-based technology companies, as well as federal agencies, depend on it to hire tens of thousands of employees each year from countries.

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Since the new rule bars foreign workers, federal agencies will no longer hire H1-B visa holders. They might also not give any contract to an Indian company where H1-B visa holders work. Therefore, indirectly, the Trump administration's move will also affect US-based Indian companies.

All federal agencies have been asked to complete an internal audit and assess whether they are in compliance with the requirement that only US citizens and nationals are appointed to the competitive service.