President Donald Trump on Monday banned federal agencies from firing U.S. citizens or green card holders and replacing them with foreign workers, and criticized a major state company for doing so.
The executive order that Trump signed Monday increases scrutiny of the use of H-1B visas by federal contractors to bring in temporary foreign labor for highly-skilled jobs rather than relying on American workers.
The move was fueled by the June Tennessee Valley Authority federal announcement that it will lay off 62 information technology workers as the federal energy agency outsources data and programming work, according to an administration official. who asked for anonymity.
Trump called TVA CEO Jeff Lyash's outsourcing decision "disastrous and ruthless." Trump said the board must eliminate Lyash, or it will. He also said he will remove some members of the board, including President James Thompson.
After receiving a note during the White House event, Trump said he received a call from Lyash and that the TVA chief had indicated a "readiness to reverse course" in the announced layoffs. TVA did not immediately respond to a message seeking comment.
The Covid-19 recession has left millions of Americans out of work, with uncertain prospects for recovery due to continued increases in virus case counts in many states.
With the president behind Democrat Joe Biden in the polls ahead of the November election, Trump's move would show actions to support jobs. The administration is also in talks with Democrats about the extension of additional unemployment benefits.
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