On Friday, the Trump administration made a big, bad move toward creating a radical overhaul of the H-1B visa program. Now they’re going to start charging companies $100,000 per foreign worker visa. Here’s an overview of how this new, costly deterrent to attendance will affect U.S. states. The renewal/approval process is, unsurprisingly, more inconsistent across the country. After all, the tech sector needs all that skilled foreign labor. Because of that, it will experience the deepest impact of all regions from this policy change.
H-1B visas allow U.S. companies to employ foreign workers in specialty occupations that typically require technical expertise or advanced degrees. Imposing such a fee weighs heavily on the future of this critical immigration pathway. That’s especially the case in states that have been home to growing technology sectors. In states with a high volume of H-1B applications, such as California and New York, the financial burden of the new charge could deter companies from sponsoring international talent.
The recently announced $100,000 fee is a burden imposed in bad faith, not to solve a pressing issue. The tech industry is in desperate need of skilled workers as we speak. Businesses often turn to H-1B visas to staff jobs in software development, data analysis, and engineering. With this new charge now happening, companies will face tough decisions on hiring and keeping workers.
Industry experts warn that the impact of this policy would go far beyond affecting one or two companies. Otherwise, the tech sector will find it increasingly difficult to maintain its competitive edge. This is mainly because of increasing expenses tied to the foreign workforce. These new rules may require employers to reassess their staffing policies. They need to further focus their time and effort on training up more domestic workers to fill these roles.
In light of the long-standing history around H-1Bs, the implementation of this charge is particularly worrisome. Approvals have been uneven from state to state. This leaves employers seeking to hire the best foreign professionals through a complex patchwork of accessibility. Other states will see a larger decline in renewals. This new fee has prompted companies to search critically within operational budgets.