Rewind: Can America thrive without immigrants?
From building railroads in the 19th century to running Silicon Valley today, immigrants power America, but the H-1B visa fee hike may choke its economy
A nation built by migrants
By Dr O Prasada Rao
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Migration to the US began before independence. Settlers from Europe laid the foundation for colonial America. Africans, forcibly brought as slaves, built much of its economy. The 19th century witnessed waves of Irish, German, Italian, and Chinese immigrants, each group making significant contributions to infrastructure, agriculture, and industry. They brought both cultural enrichment and political tension, but the cumulative effect has been a dynamic, resilient society.
Migrants Vs Native
According to the Migration Policy Institute, 45.2 per cent of recent immigrants (post-2010) hold a bachelor’s degree or higher, compared to 38 per cent of US-born citizens. Immigrants from countries such as India, China, South Korea, and Nigeria consistently outperform native-born Americans in educational attainment. While Latin American immigrants tend to have lower formal education, they contribute through skilled trades and entrepreneurship. This educational diversity in the US workforce fills both high-tech and essential service roles.
Migrants have been instrumental in building America in all spheres. Immigrants added about USD 2 trillion to the US GDP in 2016. They paid over USD 500 billion in taxes in 2021, including USD 76 billion from undocumented workers. Twenty-two per cent of US entrepreneurs are immigrants, driving innovation and job creation.
Over 45 per cent of Fortune 500 companies were founded by immigrants or their children. Immigrants account for 22.8 per cent of Science, Technology, Engineering, and Mathematics (STEM) workers, driving research and technological advancement. They dominate sectors such as agriculture, hospitality, elder care, and domestic services, including cleaners and cooks. Not just labourers — they are leaders too. They have served in Congress, state legislatures, and as mayors. Notable figures include Rep Pramila Jayapal (India) and Rep Ilhan Omar (Somalia).
CEOs of Google (Sundar Pichai), Microsoft (Satya Nadella), and Adobe (Shantanu Narayen) are all immigrants. When it comes to nurses and doctors, they make up 15.2 per cent and 26.5 per cent, respectively.
Migrants are the invisible engine powering the US logistics sector. Nearly 20 per cent of US truck drivers are immigrants — up to 47 per cent in States like California and Texas. They are heavily employed in warehousing, at docks, and at ports. According to reports, the US already faces a shortfall of over 80,000 truck drivers, and stricter immigration policies could displace 50,000-1,00,000 drivers, leading to slower freight movement, delays, and higher costs for consumers.
Migration Policies
The first major federal restriction on immigration came through the Chinese Exclusion Act (1882). The Immigration Act of 1924 imposed quotas favouring Northern Europeans. Later, the Immigration and Nationality Act (1965) abolished these quotas, opening doors to Asia, Africa, and Latin America. The Immigration Reform and Control Act (1986) legalised millions of undocumented immigrants.
Recent tariff hikes have adversely affected migrants and their families. For instance, Indian textiles now face up to 50 per cent tariffs, hurting migrant-owned businesses. Seafood and spice exports from Kerala have drastically reduced due to US penalties, affecting migrant workers and their families. Tariffs on Chinese technology components have raised costs for immigrant-run startups.
Estimates suggest that the US may experience negative net migration for the first time in decades. Historically, countries like India, China, and Nigeria suffered from “brain drain”. Now, skilled migrants are returning home, bringing advanced education, entrepreneurial skills, and global networks. According to a Nasscom report, India’s technology hubs, such as Bengaluru and Hyderabad, are seeing a surge in startups founded by returnees from Silicon Valley.
China’s semiconductor sector has benefited from engineers returning after facing visa hurdles in the US, accelerating domestic innovation (South China Morning Post, 2024). Meanwhile, the US faces reduced GDP growth, projected to drop by 0.8 per cent in 2025, besides seeing a decline in innovation and talent shortages.
Economists believe migrants complement rather than replace US-born workers. Thus, the idea of a self-reliant America is alluring but flawed. Migrants are not just contributors — they are catalysts. Restricting them risks shrinking the labour force, lowering GDP growth, and reducing competitiveness.
In trying to protect its borders, America may be inadvertently exporting its future.
(The author is retired Scientist, Council of Scientific and Industrial Research)
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The $ 1,00,000 visa wall
By Dr Jadhav Chakradhar
In a move that reeks of economic nationalism gone amok, US President Donald Trump has slapped a staggering USD 1,00,000 annual fee on new H-1B visa petitions, raising the cost of hiring skilled foreign workers from a modest USD 215.
At a time when the US economy thrives on innovation driven by global talent, this fee hike threatens to choke off the very pipeline that has fueled Silicon Valley’s dominance, burdened tech giants, and alienated key allies like India.
Tracing H-1B
The H-1B program has been a cornerstone of American competitiveness since its inception in 1990. Designed for speciality occupations requiring advanced knowledge — software engineers, data scientists, and biotech researchers — the visa allows US companies to hire foreign professionals when domestic talent falls short.
Annually, the program caps at 65,000 visas, plus 20,000 for those with US master’s degrees or higher. Indians dominated this share with over 70 per cent, and have been instrumental in contributing to breakthroughs at firms like Google, Microsoft, and Amazon. Studies show that every H-1B visa holder generates up to 1.83 additional jobs for Americans, particularly in STEM fields where unemployment remains below 2 per cent.
The fee, applicable only to new petitions and not renewals or existing holders, will hit hardest during the fiscal year 2026 lottery cycle. For companies already navigating a lottery system with approval rates under 40 per cent, this adds an insurmountable barrier. Imagine a startup in Austin or a fintech firm in New York: paying USD 1,00,000 per hire — annually — could bankrupt smaller players overnight.
Even behemoths aren’t immune. Amazon, with over 10,000 H-1B employees, TCS (5,505), Microsoft (5,189), and Meta (5,123) top the list of beneficiaries as of June 2025. These firms, clustered in hubs like California (home to the most H-1B holders), Texas, New York, and Virginia, have already issued frantic memos urging visa holders to stay put amid the chaos.
The administration’s rationale? A vague nod to ‘America First’ echoed in a White House fact sheet suspending certain non-immigrant entries to protect US workers. Proponents argue it weeds out low-wage exploitation, targeting outsourcing firms that undercut American salaries. Abuses exist, no doubt, like the infamous Disney case in 2014, where US workers were required to train their H-1B replacements. But this sledgehammer approach misses the scalpel. Existing regulations already mandate prevailing wages, and the fee hike doesn’t distinguish between abusers and innovators. Instead, it punishes the entire tech sector, which relies on H-1B talent to fill gaps in a domestic workforce short by millions in STEM roles.
Economic Impact
The economic fallout could be catastrophic. The US Chamber of Commerce estimates that restricting high-skilled immigration costs the economy USD 100 billion annually in lost output. With this fee, companies may offshore operations entirely, relocating R&D to Canada or Europe, where investor visas cost far less. Innovation suffers too: H-1B alumni founded unicorns, like Zoom and Stripe, that contribute trillions to GDP. Stifling this inflow risks ceding ground to rivals like China, which is aggressively courting global talent with streamlined visas.
The policy’s “humanitarian consequences” are profound. Families face disruption — spouses on H-4 visas, often skilled professionals themselves, could see dreams deferred. The sudden rollout, with scant guidance, sparked panic: immigration lawyers were flooded with calls, and employees scrambled back from vacations. This echoes Trump’s 2017 travel ban fiasco, where ambiguity led to airport chaos. While clarifications emerged — that the fee spares current holders — it underscores the administration’s reckless implementation.
Legal challenges loom large. Experts deem the move akin to “mobs demanding protection money,” questioning its statutory basis under the Immigration and Nationality Act. Critics might counter that the move is to fund USCIS (US Citizenship and Immigration Services) modernisation or deter fraud. But why not targeted reforms? Expand the cap, prioritise US graduates, or crack down on lottery abuses where firms file multiple petitions. Biden-era proposals, like wage-based selection, offered smarter paths.
The fee hike may play well in rallies, but it betrays the American Dream.
(The author is Assistant Professor of Economics, Centre for Economic and Social Studies [CESS], Views are personal)
