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H-1B visa change will hurt American tech ecosystem, says Cornell expert

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Damien Sharp

On Friday, President Trump signed a proclamation requiring a $100,000 fee accompany new H-1B visas, but H-1B visas have long been beneficial for the U.S. economy as a whole and this move will hurt the American tech ecosystem say Cornell University experts. 

 


Greg Morrisett

Jack and Rilla Neafsey Dean and Vice Provost

“I don’t see how these changes will help American workers, and it will for sure hurt the American tech ecosystem which is powering our economy. When applying for an H-1B, employers have to file a Labor Condition Application with the Department of Labor that ensures the H-1B worker is paid at least the prevailing wage and that hiring them won’t adversely affect similarly employed U.S. workers.  

“Perhaps more importantly, the U.S. leads in tech innovation because it has attracted the very best talent from around the world. For example, Forbes reported that, in 2022, immigrants founded or co-founded more than half of the billion-dollar ‘unicorns’  in the U.S. If we’re serious about creating jobs, then we should be removing barriers to attracting talent from around the world.”  

Fernando Gomez-Baquero

Director of Runway and Spinouts

"H-1B visas have long been beneficial for the U.S. economy as a whole. A recent study from the American Immigration Council linked H-1B recipients with increased patenting, venture capital funding, higher wages, and overall increased economic activity. Startups and non-profits use H-1B to start companies that create new jobs for American workers, and to attract amazing talent that does not exist in the U.S. 

"The new H-1B $100k fee immediately affects universities, startups, and entrepreneurs who cannot afford it, reducing the potential for new jobs created. It also does not solve the potential abuse of the H-1B by large corporations. On the contrary, only large corporations will have the economic power to pay the fee. 

"A more effective approach to H-1B reform would be to uncap H-1B for entrepreneurs seeking to create new jobs, and to strengthen the review process for H-1B petitions to ensure that American workers with the right qualifications and knowledge are considered for these positions above foreign workers." 

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