Trump’s Executive Order on H-1B, L-1 Visas for Foreign Workers Cost Companies $100 Billion: Report2 min read
President Donald Trump’s executive order limiting the entry of skilled foreign workers into the US, mostly on H-1B and L-1 visas. It has resulted in an estimated loss of $100 billion to organizations and will have enduring negative effects on firms here. As indicated by a prominent American research organization.
The H-1B visa generally searched after among Indian IT professionals. It is a non-immigrant visa that permits US organizations to hire foreign workers in specialty occupations that require theoretical or technical expertise. An L-1 visa is for internal company transfers.
The executive order was signed by Donald Trump on 22nd June. Which had temporarily restricted issuing new H-1B and L-1 visas till 31st December. Because it caused a negative effect on the valuation of Fortune 500 firms identical to over USD 100 billion in losses. Recently Brookings Institute said in a report released this week.
As per estimates, the order banned the entrance of almost 200,000 foreign workers and their dependents. Said the report co-created by Prithwiraj Choudhury, Indian-American Lumry Family Associate Professor of Business Administration at Harvard Business School; Dany Bahasr from Brookings and Britta Glennon from the University of Pennsylvania.
Noticing that the nonimmigrant visas, (for example, the H-1B and L-1 visas) that were targeted are utilized by organizations. To recruit or transfer high-skilled immigrants, the report said there was overwhelming proof recording that skilled immigration improves firm results. For example, benefits, profitability, production expansion, innovation, and investment. “Thus, it is conceivable that the Trump government estimates essentially restraining immigration. Also, it will have enduring negative effects on American firms, and with it, slow down the post-COVID-19 financial recovery,” it argued.
H-1B L-1 Visas
However, the American Immigration Council on Thursday said another proposed rule by the DHS restricting the admission periods of foreign students. Additionally, exchange visitors could crush US authority in scientific research and technological innovation.
The proposal would negatively affect American colleges, universities, and foreign students. Applicants looking for a higher education degree in the US and have long-term impacts on the legal immigration system, it said.
[US Proposes Not to Issue Business Visa for H-1B Speciality Occupations]
“These rules threaten to undermine the US‘ part as a world leader in education. And defames a huge number of students based on their nation of birth. New fees and bureaucratic barriers will make it harder for students and exchange visitors to finish their courses of study in the US. The uncertainty that will definitely drive capable students from around the globe. To seek after their studies in different nations, said Beth Werlin, executive director of the American Immigration Council.
“Already we have an appropriate system in place to guarantee those international students. Also, exchange visitors comply with the terms of their visas. This proposed rule is unnecessary and would essentially reduce our ability. To serve as a destination for the most talented students and exchange visitors from around the globe,” Werlin said.