US President Donald Trump signs executive order prohibiting hiring of H-1B visa holders for federal contracts

United States President Donalod Trump on Monday signed an executivr order prohibiting American employers from using H-1B workers to displace Americans in outsourcing contracts. The order alignes federal contracting and hiring practices with the "interest of American workers".

"Today I`m signing an executive order to ensure that the federal government lives by a very simple rule: Hire American. We`ve been doing it at a level that hasn`t been done maybe ever," President Trump said.

This order will change the priorities of the federal goveernment in ther US drastically, forcing it to hire Americans rather than signing on foreign workers majority of those who are on H-1B visas.

"As we speak, we`re finalizing H1-B regulations so that no American worker is replaced ever again. H1-Bs should be used for the top, highly paid talent to create American jobs, not as inexpensive labour program to destroy American jobs," he said.

The H-1B, which is a non-immigrant visa, allows companies in the US to hire foreign workers in specialty occupations that require theoretical or technical expertise. As many as 500,000 migrant workers are employed in the US on an H-1B visa status. The H-1B visa is also especially popular among highly-skilled Indian IT professionals.

The Executive order signed by President Trump states that "the head of each agency that enters into contracts shall assess any negative impact of contractors` and subcontractors` temporary foreign labor hiring practices or offshoring practices on the economy and efficiency of Federal procurement and on the national security, and propose action, if necessary and as appropriate and consistent with applicable law, to improve the economy and efficiency of Federal procurement and protect the national security.

Notably, a few Republican Senators had written to US President Donald Trump on Thursday urging him to suspend all the new guest worker visas for 60 days and some of its categories, including the H-1B visa, for at least the next year or until unemployment figures return to normal levels in the country.

More than 33 million Americans have lost their jobs in the past two months due to the COVID-19 pandemic that has brought the US economy to a standstill. The White House officials predict that the country's economy is likely to grow at negative 15-20% in the second quarter.