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H-1B visa policy: What is Project Firewall? How will the $100,000 hike impact employers in the US?

The US Department of Labour introduced Project Firewall alongside the new $100,000 application fee hike on H-1B visas. According to the US Secretary of Labour, the initiative aims to protect the rights, wages, and jobs of skilled American workers by holding employers accountable for the visa violations

US Secretary of Labor Lori Chavez-DeRemer | AFP

The U.S. Department of Labor announced the launch of Project Firewall, an initiative that aims to protect the rights, wages, and jobs of skilled American workers.

The initiative was announced right after US President Donald Trump signed an executive order imposing a $100,000 fee for H-1B applications.

What is Project Firewall?

Lori Chavez-DeRemer, the US Secretary of Labour, said in the official press release, “The Trump Administration is standing by our commitment to end practices that leave Americans in the dust. As we re-establish economic dominance, we must protect our most valuable resource: the American worker. Launching Project Firewall will help us ensure no employers are abusing H-1B visas at the expense of our workforce,”

In addition to the $100,000 fee for applicants, the project also intends to hold employers accountable if they violate or abuse the visa process. The project will allow the Secretary of Labor to personally certify investigations into violations, a first for the department. Violations could lead to monetary penalties, back wages, and employer exclusion from the visa program for a prescribed amount of time.

“By rooting out fraud and abuse, the Department of Labor and our federal partners will ensure that highly skilled jobs go to Americans first,” Chavez-Deremer said.

The Office of Immigration Policy, Employment and Training Administration, and Wage and Hour Division will lead Project Firewall within the Department of Labor. They will be working in tandem with the Civil Rights Division of the Department of Justice, the Equal Employment Opportunity Commission, and US Citizenship and Immigration Services.

Indians make up a majority of all H-1B applications. The hike in the fees will make U.S. employers reconsider hiring from outside the country.  Congressman Raja Krishnamoorthi said that the fee hike is a "reckless attempt to cut America off from high-skilled workers who have long strengthened our workforce, fuelled innovation, and helped build industries that employ millions of Americans."

It is still unclear how the project will affect foreign nationals who are currently in the US on H-1B visas.