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Trump’s ban on H-1B, L-1 visas for foreign workers cost $100 billion, says report

An order signed by Trump on June which temporarily banned H-1B & L-1 visas, caused a negative impact to the valuation of Fortune 500 firms, Brookings Institute said in a report.

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Washington: President Donald Trump’s executive order restricting entry of skilled foreign workers into the US, mainly on H-1B and L-1 visas, has resulted in an estimated loss of USD 100 billion to companies and will have lasting negative impacts on firms here, according to a prominent American think-tank.

The H-1B visa, most sought-after among Indian IT professionals, is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. L-1 visa is for internal company transfers.

The executive order signed by Trump on June 22, that had temporarily banned issuing fresh H-1B and L-1 visas till December 31, caused a negative impact to the valuation of Fortune 500 firms equivalent to over USD 100 billion in losses, Brookings Institute said in a report released this week.

According to estimates, the order barred the entrance of nearly 200,000 foreign workers and their dependents, said the report co-authored 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.

Noting that the nonimmigrant visas (such as the H-1B and L-1 visas) that were targeted are used by companies to hire or transfer high-skilled immigrants, the report said there was overwhelming evidence documenting that skilled immigration improves firm outcomes such as profits, productivity, production expansion, innovation, and investment.

“Thus, it is plausible that the Trump administration’s measures significantly restraining immigration will have lasting negative impacts on American firms, and with it, slow down the post-COVID-19 economic recovery,” it argued.

Meanwhile, the American Immigration Council on Thursday said another proposed rule by the Department of Homeland Security limiting the admission periods of foreign students and exchange visitors could devastate US leadership in scientific research and technological innovation.

The proposal would negatively impact American colleges and universities and foreign students seeking a higher education degree in the United States and have long-term effects for the legal immigration system, it said.

A proposed rule by the Department of Homeland Security limiting the admission periods of foreign students and exchange visitors could devastate US leadership in scientific research and technological innovation, it said.

“This rule threatens to undermine the US’ role as a world leader in education and stigmatises tens of thousands of students based on their country of birth. New costs and bureaucratic barriers will make it more difficult for students and exchange visitors to complete their courses of study in the United States uncertainty that will inevitably drive talented students from around the world to pursue their studies in other countries, said Beth Werlin, executive director of the American Immigration Council.

“We already have an appropriate system in place to ensure that international students and exchange visitors comply with the terms of their visas. This proposed rule is unnecessary and would significantly reduce our ability to serve as a destination for the most talented students and exchange visitors from around the world,” Werlin said.


Also read: Trump administration imposes fresh curbs on H-1B visas ahead of 2020 US election


 

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2 COMMENTS

  1. Here goes the $80Bils p.a. remittances Indians sent back to India. Every year 20Mils new job seekers are produced in India explosive population, they will not able to find jobs as tiny Singapore arm twisted by India with CECA is already overwhelmed. Only US can absorbed millions after millions of Indians, so American Indians will vote for Biden(hence Indian Kamala).

    These H1B are mostly given to Indians that are not real programmers. According to them, some are only high school leavers given a 30days coding course by India IT companies like Infosys. They are then paid $1200 as cheap labour sent to US for assignment, hardly survive the living cost. But at least they get a job, while getting OTJ training hopefully able to stay in US later.

    That’s why many US IT engineers decry how these untrained Indians ruin all projects they touch with spaghetti coding. Coincidentally Boeing 737Max coding was outsource to two India companies, reported Reuters. Microsoft disastrous unusable Windows8 was developed under Indians stewardship.

    If Indians are truly IT talent, one wonder why there is not a single great Apps, software, technology or gadget ever invented/make by Indian?

  2. 90% of these visas were issued to Indians. Because Indians claims to be good in IT industry , but why American keep issuing these visas to Indian while Indian cant keep safe their defence equipment which are controlled by software’s.

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