The recent executive order by former President Donald Trump to increase fees for H-1B visa applications has left many small businesses, particularly in the behavioral health sector, scrambling to navigate a growing workforce crisis. Karen Brady, chief executive at Ryther, highlighted the severe implications of this decision on companies struggling to fill essential positions with skilled foreign workers.
Seattle-based Ryther, a behavioral health training and treatment organization, currently has two therapists on H-1B visas. That’s out of their overall staff of 45 passionate professionals. Like 90% of their professions, both therapists come from China, emphasizing the H-1B program’s role in uniting the world’s talents to fill workforce shortages in crucial sectors. The behavioral health industry, like many others, has faced an unprecedented demand for services following the pandemic, exacerbating existing challenges in recruiting qualified personnel.
Brady isn’t the only one who has voiced concerns about the financial burden the new regulation will impose. “There’s no way that we can afford $100,000,” she stated, emphasizing the dire situation for small firms reliant on skilled foreign labor. This steep fee could potentially cripple their ability to hire the talent needed to meet the increasing demand for services.
We know that major tech companies have wielded considerable influence over the H-1B program for a long time. Together they represent nearly 40% of the new H-1B visas issued each year. Brady’s experience underscores the need for this program. That’s especially important for the smaller businesses that are really struggling right now, largely due to the domestic talent drain.
Abhishek Singh, an innovative software engineering manager based in the Seattle area. He has lived and worked in the U.S. for the past ten years, the last seven of which as an H-1B visa holder. When the recent announcement about these dramatic fee increases came out, immediate concerns pumped up to the surface for him. He was deeply concerned that his startup employer would be at a disadvantage bearing the additional costs of his visa application. This concern sat heavy on his conscience.
In particular, there’s unknown right now because of the fact that anything can happen in the future, Singh remarked. He is considering moving abroad if he can’t get a job that fits with his visa situation. If they kick us out we don’t have any other option,” he asserted. He mentioned how employers can abuse precarity and employment flexibility for H-1B visa holders under current policies.
Our experts recently joined us for a webinar to digest the bigger implications of these sweeping changes. Elise Fialkowski, co-chair of Klasko Immigration Law Partners’ corporate immigration practice, noted that Trump’s executive order “almost begs companies to offshore work.” Those feelings are expressed by Dan Wang, a professor at Columbia Business School. Wang commented on how policies that hinder access to skilled foreign workers often lead companies to consider relocating operations abroad.
Ronil Hira, an academic and policy expert, offered a contrasting perspective: “If these are really specialized people, and they’re bringing in a lot of value, $100,000 shouldn’t be a big deal for those employers.” Others see the fee as a death blow. To many others, it’s an essential investment in future skilled labor.
This push-back against the exorbitantly increased fees is indicative of much deeper issues at play that impact our labor market competitiveness. Many argue that these policies do not effectively balance the interests of American workers with those of skilled foreign labor. “These policies really don’t have the intended effect of balancing the labor market competitiveness of American workers,” Wang noted.
While creative small businesses like Ryther work their way around these challenges, the discussion about the future of the H-1B program rages on. The current landscape presents both a challenge and an opportunity for businesses to adapt to changing regulations while addressing workforce shortages.