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Understanding the Potential Impact of H-1B Visa Program Changes

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  • Nicolas Morales

Abstract

A new policy proposal would require firms to pay a one-time fee of $100,000 to hire an immigrant college graduate under the H-1B visa program. The policy would likely reduce the total number of college-educated immigrants in the U.S., with universities as well as companies in the IT sector among organizations most likely affected. Research shows that firms expand when they hire H-1B workers without significantly displacing Americans. Firms might respond to this policy change by offshoring their operations to countries such as Canada or India.

Suggested Citation

  • Nicolas Morales, 2025. "Understanding the Potential Impact of H-1B Visa Program Changes," Richmond Fed Economic Brief, Federal Reserve Bank of Richmond, vol. 25(39), October.
    • Handle: RePEc:fip:fedreb:101933
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