Trump signed a new Executive Order yesterday that imposes a yearly fee of $100,000 per H1-b visa. This will apply to new and renewed visas. It also imposes a deadline on hurt H1-b holders to be within the USA on 9/21/2025 or be charged the fee on entry.
The deadline on re-entry does feel very draconian and will screw over a few people that might have been on vacations back home. But the fee structure makes sense to me.
H1-b visas have been abused by corporations to artificially suppress domestic labors wages for years. Why pay an American market rate when they can pay 1k and get an H1-b to fill a vacancy at the bottom of the pay band. It then puts downward pressure on the rest of the employees wages. It incentivizes employers to give shitty raises as any vacancies they can fill with imported labor.
- One company was approved for 5,189 H-1B workers in FY 2025, while laying off roughly 16,000 U.S. employees this year.
- Another company was approved for 1,698 H-1B workers in FY 2025, yet announced it was laying off 2,400 U.S. workers in Oregon in July.
- A third company has reduced its U.S. workforce by 27,000 since 2022 while receiving 25,075 H-1B approvals.
- Yet another company reportedly cut 1,000 American jobs in February despite receiving 1,137 H-1B approvals for FY 2025.
Due to the wage suppression and the high cost of college education it puts stress on anyone looking to get into the STEM fields as the open positions are being farmed out to foreign labor. Why go into debt for a degree that you cant use due to corporations suppressing those industries wages.
I have personally refused position advancement due to the wages in the new position being artificially suppressed with this imported labor. This still might push companies to straight up off-shore the position to india where the wage would be even lower then the H1-b wages. But im not so sure it will be the case since they could have just done that now for cost savings.
STEM industries are disproportionally affected by this program. Which accounts for about 50% of all H1-b visa granted. Making up about 350K Stem jobs being farmed out to imported labor. Which accounts for about 4% of all STEM related positions
These positions should not look like layoffs as the positions should be mostly net neutral as a whole. Though i do expect some companies to reduce headcount slightly and run leaner with a more expensive workforce.
This seems like a great idea though i expect corruption to be rampant with the discretion of who is granted a waiver of the fee is on the whims of the most corrupt president in history.
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