In September 2025, United States President Donald Trump signed a proclamation introducing a new H-1B visa fee of $100,000. By signing the “Restriction on Entry of Certain Nonimmigrant Workers” proclamation, Trump directed the Department of State to implement the exorbitant fee for new H-1B applications, which are filed by American employers on behalf of skilled foreigners, particularly information technology professionals.
The text of the proclamation indicates an intention to protect American workers. This has been a principal aspect of Trump’s anti-immigration rhetoric, which he often justifies as a means to improve the national economy. The problem with this justification, which is deeply flawed and will likely backfire, is that it ignores widely reviewed research on the economic benefits of immigration. Well-informed professionals, including immigration lawyers in San Diego, have an in-depth understanding of the economic benefits immigration can provide, including those listed below.
The Current Reality of Immigration and the American Economy
Economists and business analysts reacting to the $100K H-1B visa fee proclamation have been highly skeptical about Trump’s claims that the program displaces American workers and dilutes income-earning potential. On CNBC, Goldman Sachs CEO John Waldron described the situation as a superfluous economic barrier. Harvard University professor Kenneth Rogoff explained that attracting skilled workers has always been crucial to economic growth.
Before Trump’s onerous increase of the H-1B visa fee, researchers from the Wharton School, his business alma mater at the University of Pennsylvania, pointed out the economic flaws of his anti-immigration program. In a July report published by Wharton, economists warned that mass deportations could reduce the U.S. gross domestic product (GDP) growth rate to the low levels experienced during the COVID-19 pandemic.
The Economic Policy Institute (EPI), a think tank based in the District of Columbia, estimates the American labor market would be reduced by 3.3 million foreigners and 2.6 million Americans if Trump’s mass deportation plan is fully executed. The rationale for this contraction is that the low-skilled jobs mostly held by immigrants are highly complementary to high-skilled workers. Furthermore, the EPI projects major losses to the agricultural, construction, and service sectors, which are major engines powering the U.S. economy. The state economies of California, Florida, New York, and Texas would be the most affected. Coincidentally, they’re the largest contributors to GDP growth and federal tax revenues.
The Mariel Boatlift and the Benefit of the Doubt
Instead of listing the many economic benefits of immigration, which include boosting overall GDP and consumer demand, economists usually issue warnings and worst-case scenarios. An oft-cited report involves the processing of 12 million foreigners at Ellis Island in New York City from the early 1890s to the mid-1950s. The GDP growth charts from this period tell a story of prodigious economic prosperity.
Large-scale studies invariably indicate immigration has overall positive economic effects. If we want to explore the benefit of the doubt, we can cite research conducted by David Card, a Nobel laureate in economics, about the effects of the Mariel Boatlift in the early 1980s. For approximately five years, the influx of Cuban workers in Miami lowered wages in the construction industry by almost 25 percent. This trend didn’t last long. By 1986, the economic growth across South Florida promoted heavy demand for construction workers of all skill levels. Thousands of Americans relocated to Miami in search of high-paying jobs, thus reversing the short-lived wage reduction trend.
In these turbulent political times, it’s often difficult to get the truth about immigration, which is that it benefits the United States in many ways. Immigrants are understandably concerned about stereotypes that can affect immigration policies and legislation, leaving them uncertain about their futures in the U.S. If you have questions about any aspect of immigration, contact trusted attorneys who have vast experience with immigration services. In San Diego, CA, KS Visa Law is the firm to turn to when you need advice about immigration law and how it affects you and your family. Call us today to schedule an appointment.
