US Presidential Election: Impact on H-1B Visas and IT Firms
The upcoming US Presidential election is crucial for employment-based immigration, especially H-1B visas, according to a report by JM Financial. If Donald Trump returns to power, his previous restrictive policies might reappear, increasing scrutiny and denial rates for H-1B and L-1 visas. During his first term, H-1B visa denial rates rose from 4% to 17%, and L-1 visa denials increased from 12% to 28%.
Trump’s executive order, “Buy American and Hire American,” heightened H-1B visa restrictions. However, IT firms have reduced their reliance on these visas, with visa-dependent employees dropping from 65% to below 50%. This change helps protect them from potential denial rate spikes as they localize their US workforce.
Trump’s administration also tried to raise minimum wage requirements for H-1B visa holders, which could return if he is re-elected. Although these measures were blocked, they could foreshadow future policies. Currently, H-1B wages are 25-35% above prevailing wages, challenging claims of wage suppression.
The report suggests Trump’s presidency might have limited impact on Indian IT services, while a Harris presidency would maintain the status quo. Legislative changes, including bipartisan immigration reform bills, could influence the future of high-skilled immigration in the US.
Doubts Revealed
US Presidential Election -: The US Presidential Election is when people in the United States vote to choose their President, who is the leader of the country.
H-1B Visas -: H-1B visas are special permissions that allow people from other countries to work in the United States, especially in jobs that need special skills, like in technology.
IT Firms -: IT firms are companies that work with technology, like making computer software or managing data. In India, companies like Infosys and TCS are big IT firms.
Donald Trump -: Donald Trump is a businessman who was the President of the United States from 2017 to 2021. He is known for making strict rules about who can come to work in the US.
Denial Rates -: Denial rates refer to how often applications for visas, like the H-1B, are rejected or not approved by the US government.
L-1 Visas -: L-1 visas are another type of permission for people to work in the US, usually for those who are transferred within the same company from another country.
Harris Presidency -: A Harris presidency refers to Kamala Harris, who is currently the Vice President of the US. If she becomes President, it is expected that she would keep the current rules about visas the same.
JM Financial -: JM Financial is a company that provides financial services and advice. They study and report on how different events might affect businesses and the economy.
