The ongoing COVID-19 pandemic has brought change to every facet of life and government. While Congress’s focus has largely been on providing direct relief for workers and business owners struggling with the financial impact of the outbreak, recent actions taken by the Trump administration on immigration issues stand to impact the talent needs of American businesses.
President Donald Trump issued a proclamation on June 22nd suspending the issuance of new non-immigrant visas. This included the H-1B visa program for high-skilled workers, J-1 cultural and educational exchange visas, and L-1 visas for managers, executives, or those with exceptional knowledge. While the administration has stated there are limited exemptions to the ban, the moratorium on new visas stands to severely impact the U.S. tech industry, America’s startup ecosystem, and their talent needs.
Immigrants are vital to the United States, and welcoming immigrants into the country speaks to the ideals on which our nation was founded. High-skilled immigrants play a critical role in developing ideas and founding new ventures that keep the United States at the forefront of innovation. A study by the Kauffman Foundation found that immigrants are more likely to become entrepreneurs than native-born Americans at a rate of almost 2-to-1, and these companies are huge sources of job creation in the United States. Another study indicated that 55 percent of surveyed startups valued at over one billion dollars had at least one immigrant founder. Some of the nation’s largest companies, from Uber to SpaceX, were founded in the United States by immigrants. Restricting the ability of immigrants—like H-1B recipients or DACA recipients—to live and work in the U.S. will only result in the country falling behind the innovative progress of global competitors.
The ongoing pandemic has made attracting talent to the U.S. even more critical, but the continued visa ban will likely result in innovative talent seeking opportunities elsewhere. Some have even posited that the visa ban may also force companies to set up shop or relocate to meet their employment needs. And with H-1B denial rates continuing to rise, companies may see no other option in attracting innovative talent.
The United States should welcome high-skilled workers. Supporting America’s tech and entrepreneurial communities means increasing access to qualified talent, from expanding H-1B visas to making DACA permanent to adopting an entrepreneur visa so innovative job creators can launch their companies in the U.S. Rescinding the welcome mat to talented immigrants under the guise of pandemic safety will only serve to drive ideas and talent to other nations.
Startups and tech companies are continuing to speak out against the administration’s efforts to block H-1B visas. In July, five leading trade associations filed suit against the administration, challenging its actions as unlawful and damaging to American businesses that rely on these visas to access talent they are unable to find in the U.S., and that “left in place, these restrictions will push investment abroad, inhibit economic growth and reduce job creation.” In support, several high-profile tech companies filed an amicus brief in the case, arguing, “the suspension of these vital nonimmigrant visa programs will stifle innovation, hinder growth, and ultimately harm U.S. workers, businesses, and the economy more broadly in irreparable ways.” Engine also led a coalition of 118 startups and tech companies in a letter to the administration that called for President Trump to reconsider his suspension of non-immigrant visas. As we noted in the letter, “only with access to a global pool of talent can companies and entrepreneurs advance new technologies and keep America at the forefront of global innovation.”
The administration should heed the warnings of the startup and tech communities and reverse course on its suspension of H-1B visas and other vital non-immigrant visas. Only with these workers’ help will American companies continue to innovate and thrive—particularly startups and tech firms that can help the country rebound from the disastrous economic effects of the pandemic.
