What is Project Firewall? 5 things every H-1B worker should know about this ‘America-first’ policy

On Friday, the US Department of Labor launched Project Firewall, a high-profile initiative aimed at policing the H-1B visa programme. The move coincides with President Donald Trump’s executive order imposing a $100,000 fee on all H-1B visa applications. The project is designed to protect American workers’ rights, wages, and job opportunities, signalling a significant tightening of rules for foreign professionals in the United States. "..Launching Project Firewall will help us ensure no employers are abusing H-1B visas at the expense of our workforce,” US Secretary of Labor Lori Chavez-DeRemer said. Here are 6 things you should know about Project Firewall.

Project Firewall’s central objective is to prevent abuse of the H-1B system. Employers are now required to prioritise qualified American applicants before hiring foreign professionals. The Department of Labor will hold firms accountable if violations occur, including fraud, wage suppression, or favouring foreign hires over American candidates. The order goes into effect at 12:01 am eastern daylight time on September 21, 2025.

For the first time, the Secretary of Labor personally approves investigations into employers suspected of H-1B misuse. The Department of Labor on an X post said, “The days of employers abusing H-1B Visas are over. Introducing PROJECT FIREWALL—our plan to ensure high-skilled jobs go to AMERICANS FIRST”. This marks a departure from previous enforcement practices, centralising authority and accelerating compliance checks. Certified investigations can lead to penalties, back wage recovery, or temporary bans from the H-1B programme.

Project Firewall relies on multiple enforcement tools. Investigations may include secretarially certified probes, coordination with other federal agencies, and review of hiring and wage practices. Employers found non-compliant may face civil money penalties and restrictions on hiring foreign talent under H-1B visas, ensuring the programme is used lawfully.

Trump’s fee is intended to discourage companies from hiring foreign professionals unnecessarily. Firms such as Amazon, Microsoft, and Indian IT giants like Tata Consultancy Services and Infosys are particularly affected due to the high number of H-1B employees they sponsor. The financial impact could run into billions of dollars annually for large corporations relying heavily on the visa programme.

Indian IT companies, which historically accounted for nearly 70 per cent of H-1B visas, now face a dual challenge: the fee and heightened scrutiny. Firms such as TCS, Infosys, Wipro, and Tech Mahindra must reassess their US staffing strategies, with some potentially shifting work offshore or reducing on-site deployments to minimise costs.