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Businesses fear skilled labor gap under Trump

NJ employers warn that $100,000 visa fee will hurt competitiveness

By: Ricardo Kaulessar
NorthJersey.com
USA Today Network - New Jersey

..... President Donald Trump's changes to the visa program that brings skilled foreign workers into the U.S. have alarmed those in New Jersey who deal with the program to fears that it will hurt businesses and scapegoat workers.
.....The executive order signed by Trump on September 19 [2025] requires a $100,000 payment from companies to accompany any new H1B visa petitions submitted after midnight on September 21. [2025] the order does not apply to any previously issued H1-B visas or renewals.
..... A day after that fee took effect, the administration proposed changing the H1B visa lottery to a "weighted selection process" that gives preference to higher-skilled and higher-paid foreign workers.
..... Before Trump's change, employers typically paid about $2,000 pr worker for the visa application for expedited processing, as well as lawyers costs.
..... H1Bs allow American companies to hire educated foreign professionals and students for specialized work in fields such as mathematics, technology, medical science and health care.
..... Rupal Parikh, an immigration attorney with an office in Montclair, said she never expected trump's executive order to impose the $100,000 fee, given the support he's received from the CEOs of major tech companies.
..... "I did not see this coming, and to have a $100,000 fee is extremely ridiculous," Parikh said. "I don't even know if eh has the legal power to do that."
..... Parikh is not the only one worried about the new policy in New Jersey.
..... Michael Siekerka, CEO of the New Jersey Business and Industry Association, said some of her members have told her they now fear a shortage of skilled workers that will eventually translate into higher prices for goods and services.
..... "There's no question that this policy shift will have ramifications, which directly and in the press," Siekerka said. "Many of our job creators do rely on H-1B visa workers, and even with that reliance, it's still fair to say we have a skilled-worker challenge here in New Jersey and across the country."
..... "We understand that the policy seeks to prioritize American workers," she said. "But it's also an unforeseen disruption to employers, large and small, and it could have impacts on competitiveness levels. Increases in wages for skilled U.S. workers in high-demand areas could also ungentlemanly result in increased prices for consumers."
..... The U.S. annually issues a capped total of 85,000 H-1B visas, with 20,000 set aside for workers with advanced U.S. degrees, according to the U.S. Citizenship and Immigration Services.
..... In the 2025 fiscal year, New Jersey had the fifth-highest number of H1B approvals, counting both new and renewed visas with 21,800. That number reflects the major presence of technology and health care companies in the Garden State.
..... There are 4,651 H-1B recipients in New Jersey, according to federal data.
..... Trump expressed support for the program last year [2024] when siding with his billionaire ally, Elon Musk, in a dispute with Trump supporters on X over whether the visas helped take jobs away from American tech workers. However, the president's longtime displeasure with the H-1B program resurfaced in his comments in the executive order.
..... "The H-1B non-immigrant visa program was crated to bring temporary workers into the United States to perform additive, high-skilled functions, but it has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor," Trump's proclamation said.
..... The visa fees have run into bipartisan pushback in Washington.
..... "We agree that the H-1B visa program can be improved and that reform is needed to better align the system with America's values and workforce needs," a group of Democratic and Republican lawmakers said in a letter to the administration October 21. [2025]
..... "At the same time, we are convened that the recent proclamation ... will create significant challenges for U.S. employers and overall weaken our competitiveness."
..... The Trump administration also recently clarified some of its H-1B measures. information posted on the USCIS web-page states that the $100,000 fee applies only to new applicants living overseas. Payment must be made before applying for the visa, and the fee does not apply to applicants changing from one type of visa to another, the agency said.
..... Between October 1 of last year [2024] and this June, [2025] 2,713 companies in New Jersey petitioned for H-1B visas, according to federal data.
..... Those companies included accounting firm Ernst & Young, which had the most, with 2,160 applications, Prudential Insurance sought 71 of the visas, and pharmaceutical company Bayer applied for 59.
..... Those companies did not respond to request for comment for this story.
..... Parikh, the immigration attorney, said Trump's actions will hurt many New Jersey industries and businesses that depend on skilled foreign workers. They also scapegoat the individual workers when this the companies and other institutions they serve that are the reason they are in the U.S., Parikh said.
..... "He's making it seem like the students or the H-1B visa holders themselves are the bad actors. Like they're the ones that are taking away the jobs. he is vilifying the visa holders, but it is an employ-sponsored process," Parikh said.
..... Parikh, who has both employers and visas holders as clients, explained that individuals become H-1B visa holders in two ways due to employer sponsorship.

Who gets H-1B visas?

..... After obtaining their degree, foreign-born students can participate in a government program called Optional Practical Training, which allows them to worm in their field of study for a year. After the year ends, it an employer is impressed with their work, they will submit their names for the H-1B visa lottery so they can get a visa that last six years.
..... U.S. companies also find foreign worked whom they sponsor for the visas through placement companies, Parikh believes Trump was targeting those businesses, believing that they commit fraud.
..... NorthJersey.com reached out to the technology staffing and solutions firm Collabra, headquartered in BaskingRidge. The company did not immediately return a message seeking comment.
..... Patrick McGovern, an immigration attorney who works for Genova burns in Newark, described the Trump revisions as "bungling," with little thought behind them.
..... "They just roll these things out. They don't think about it. They cerate all of the chaps. And now, they have to pick it up and try to explain to people, 'Isn't it obvious what we intended?' " McGoven said. "No, it wasn't obvious."
..... McGovern called the actions "illegal."
..... "You can't do it this way. you cannot do it by presidential proclamation, a change in the immigration laws. wishing does not make it so," McGovern said. "So it is going to be challenged, and some court is going to strike it down."

Legal challenges filed

..... There are currently two legal challenges to the proposals.
..... The U.S. Chamber of commerce filed a lawsuit on October 16 [2025] to the $100,000 fee, arguing it was "unlawful: and "in direct contravention of Congress' statutory enactments."
..... In early October, [2025] a coalition of labor unions, health care providers, schools, faith groups and individual workers sued Trump and other administration officials on the same grounds. they argued the fee would hurt sectors such as helaht care and education.
..... McGovern said he sees some of his business clients not paying the 4100,000 fee.
..... "This is not something that employers, most employers,take lightly, McGovern said.
..... Walmart, which has 70 locations in New Jersey, is already scaling back on hiring overseas. According to a CNBC report, the retailer decided not to offer jobs to foreign candidates who need H-1B visas for work in the U.S. Walmart, which has a growing Online presence, wide, according to government data.

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