After months of work, and internal debate, the Senate Gang of Eight has reached an agreement on immigration reform. While we’ve yet to see the full text of the bill, here’s a quick rundown of what we know so far. The plan includes a startup visa, a higher H-1B cap, and 120,000 merit-based visas, among other provisions.

Capital is the lifeblood of startups. The removal of a state tax incentive for investment in startups is likely to make capital scarcer for California companies most poised for high growth—harming job creation and an already vulnerable state economy in the process. The change breaks with current federal policy and puts California’s entrepreneurs at a relative disadvantage to those in other states. We estimate that investments in California’s startups will decline by a conservative 2 percent each year from the tax change—translating to a drop of at least $85-$127 million annually based on 2011 data.

Current immigration policy is holding back the dreams of Americans by not exposing them to global talent, explains Mike Molesky. High-skilled immigration reform is not a pet project for the sole benefit of Silicon Valley; comprehensive reform will expand America’s competitive culture of invention and potential for growth.

Increasing American opportunity and innovation means encouraging STEM education and creating a more level educational playing field in order to produce more qualified young people entering the workforce. Looking at STEM education starting with college obscures the fact that technological awareness and education starts much earlier -- at home and at school. If students fall behind early, they’re likely to stay behind.