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How President Trump’s new immigration restrictions would impact the tech industry - GeekWire

President Donald Trump speaking at the Economic Club of New York in November. (Official White House Photo / Shealah Craighead)

President Donald Trump’s proposed moratorium on a key immigration pathway is sowing fear in the U.S. technology industry, which relies on a small but critical pool of immigrant talent.

The 60-day ban on green cards would hit immigrants seeking permanent residency in the U.S. on family-based petitions the hardest, but it could have consequences for employment-based applications, too. Trump initially described a broad immigration ban in a tweet on Monday but said Tuesday during a press conference that temporary work visas would be exempt from the order. That shift is seen as a capitulation to business.

Immigration experts say foreign-born tech workers who are currently working in the U.S. aren’t immediately imperiled. However, the uncertainty that the order casts could impact the international talent pool long-term and hinder technology companies’ recruiting efforts.

Tech workers brought to the U.S. by companies like Microsoft and Amazon often agree to immigrate on a temporary work visa because there is a pathway to permanent residency, for example. That path is obscured by the president’s proposed ban, which could extend beyond 60 days, Trump said.

Microsoft President Brad Smith speaking at Seattle’s Town Hall in September. (GeekWire Photo / Kevin Lisota)

“Immigrants are vital to our company & the nation’s economy,” Microsoft President Brad Smith said Tuesday on Twitter. “Today, they’re helping us respond to COVID-19 in healthcare, research, IT, infrastructure, food supply, & more.”

The executive order, which could be signed as early as Wednesday, would also extend delays that are dogging immigration administrators under shutdown orders.

“This is going to be a tremendous load on USCIS, a system that is already multiple months behind due to field office and administrative shutdowns,” said Xiao Wang, CEO of Boundless Immigration, a Seattle startup that streamlines green card applications. “It also adds a huge amount of uncertainty for companies around what happens to the workers that are already here.”

What Trump says: The president says the executive order will protect American workers from being replaced by immigrants after the coronavirus lockdowns are lifted. “It would be wrong and unjust for Americans laid off by the virus to be replaced with new immigrant labor flown in from abroad,” Trump said Tuesday. “We must first take care of the American worker.”

Yes but: Advocates for more restrictive immigration policies frequently take aim at temporary work visas, like the H-1B, as mechanisms for replacing American workers. By exempting those visas from the restrictions, they say, the executive order does little to protect domestic jobs. The coronavirus crisis also has many employers cutting back on hiring altogether. Many companies, like Microsoft, have implemented partial hiring freezes.

“There doesn’t seem to be a logical internal consistency within the immigration ban between the stated purpose and the latest iteration,” Wang said.

By the numbers: Under normal economic conditions, American tech workers do rely heavily on temporary work visas to recruit international talent each year. The U.S. government awarded more H-1B visas for skilled workers to Amazon than any other company in fiscal year 2019.

Amazon received clearance to hire 3,575 workers using the H-1B visa last year. Microsoft received 1,706 approvals, according to data compiled by the National Foundation for American Policy. But the U.S. government is rejecting a higher percentage of H-1B petitions than in years prior. In fiscal year 2019, 21% of applications were rejected, up from 6% in 2015.

Big picture: Although the 60-day ban is stoking new fears in the immigrant and tech communities, it builds on a steady stream of policy changes that curb legal immigration. Green card approvals for new arrivals declined 13% between 2018-2019, and applicants reported more bureaucratic hurdles and red tape than prior to the Trump administration. The federal government has already slowed down visa processing, implemented travel restrictions, and rolled out other policies that restrict immigration in response to the coronavirus crisis.

“There’s a clear message, which reflects this administration’s campaign statements, of discouraging immigration and making it difficult,” Wang said. “As an immigrant myself and a job creator in this country, it’s disheartening to feel that this country that my family aspired to be part of … is going to both discourage and turn away millions of families, potentially, who also want to come here and make a difference in the world.”

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How President Trump’s new immigration restrictions would impact the tech industry - GeekWire
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