Trump administration plans
Under the Trump administration proposal, an entry-level software engineer in San Francisco would have to pay $162,000 a year to qualify for an H-1B visa — about 30 percent more than today. In Dallas, the minimum rate will increase by the same rate to $113,000, and in New York to $132,000.
These are the types of wage increases that could potentially occur for immigrants using the most popular route for white-collar workers to enter or stay in the US. It’s part of changes to the H-1B program that the Trump administration says will help prevent foreigners from undercutting Americans’ wages.
The plan to boost the minimum wage would cost the largest employers of white-collar foreign talent at least $18 billion in the first 12 months, according to an analysis by immigration data companies Lolli and Threshold. The study found that within three years – when most existing H-1B visas would have to be renewed at the higher level – the annual cost could reach $43 billion. The financial hit for employers is only half the story. The new limits are likely to ultimately reduce opportunities for young talent as employers shy away from spending the extra money.
US President Donald Trump campaigned for his second term on a promise to crack down on all forms of immigration, and his most high-profile efforts have focused on apprehending and deporting those crossing the southern border illegally. But he has also worked to restrict opportunities for professionals to come to the US, saying the system is rife with abuse and exploitation.
In its notice earlier this year proposing the salary requirements, which is awaiting final approval from the Labor Department, the administration said H-1B visa holders are typically offered about $10,000 less per year than their US counterparts.
Supporters see Trump’s proposal as a way to provide a level playing field for Americans and ensure that the visas are being used for their stated purpose – to bring exceptional talent to areas that lack highly skilled workers.
Because of increased spending, employers are already cutting back on H-1B visas for entry-level and less experienced workers, making the path easier for the most attractive workers. Of course, its impact extends beyond technology to other sectors that use H-1Bs, including finance, medicine, civil engineering, research, and education.
