CNN has a story today that is subscriber only that I somehow managed to sneak past to copy and paste. I will attach it here and return later with commentary since I have a lot of experience on this issue.
H1Bs
When the Trump administration announced last month that every new H-1B visa would come with a $100,000 fee, the objective seemed straightforward: encourage companies, particularly tech companies thatheavily on the program, to start hiring American workers and stop driving down American wages.
But the health care industry is raising concerns that the price hike on the H-1B visa will threaten the ability of hospitals in rural and underserved areas to bring in foreign workers and fulfill a shortage of specialists needed to serve the community.
“There’s no way we’re going to pay $100,000,” Carolynn Lundry, a residency program coordinator at St. Luke’s Hospital in the St. Louis suburb of Chesterfield, Missouri.
“We pool from international graduates, and if we’re going to take away the H-1Bs from that, it’s going to shrink our pool of choices,” said Lundry, who selects 16 internal medicine residents a year for St. Luke’s.
More than 64% of international medical graduates were practicing in medically underserved areas or health professional shortage areas, with more than 45% practicing in rural areas, according to a 2021 study published by the National Institutes of Health.
And the United States needs an additional 13,075 physicians just to fill shortages, according to a 2024 report from the Health Resources and Services Administration (HRSA). The HRSA forecasts that by 2037, the US will be short of 87,150 full-time equivalent (FTE) primary care physicians.
Groups push back against $100,000 fee
The White House said the new fee for H-1B visa applicants is part of President Donald Trump’s promise to prioritize American workers.
“President Trump promised to put American workers first, and this commonsense action does just that by discouraging companies from spamming the system and driving down wages,” White House spokesperson Taylor Rogers told CNN in a statement. “It also gives certainty to American businesses who actually want to bring high-skilled workers into our great country but have been trampled on by abuses of the system.”
Some groups have pushed back against the $100,000 fee, which was previously at about $3,000. Last week, the US Chamber of Commerce became the latest group to sue the Trump administration over the fee.
“The new $100,000 visa fee will make it cost-prohibitive for U.S. employers, especially start-ups and small and midsize businesses, to utilize the H-1B program, which was created by Congress expressly to ensure that American businesses of all sizes can access the global talent they need to grow their operations here in the U.S.,” said Neil Bradley, executive vice president and chief policy officer of the chamber, which is one of the biggest pro-business lobbying groups in the nation.
The American Medical Association and more than 50 other health care-related societies have urged the Trump administration to declare international medical graduates exempt from the hefty fee.
“States with a higher percentage of H-1B physicians are often those with lower physician density,” they wrote in a letter to Kristi Noem, the secretary of the Department of Homeland Security. “The U.S. health care workforce relies upon physicians from other countries to provide high-quality and accessible patient care.”
In its latest guidance, US Citizenship and Immigration Services said the $100,000 fee only applies to new H-1B applicants living abroad — not existing H-1B visa holders living who need to renew their visa, and not those who hold other visa statuses and need to change their status to an H-1B.
For small rural hospitals like St. Luke’s, the shortage of physicians, along with the new fee, can be devastating for their staffing. St. Luke’s already has trouble attracting American graduates because it is not an academic residency, which is often more appealing to American graduates who want to compete for certain hospital positions after finishing their residency.
“We need so many physicians in this country, and there just aren’t enough American medical graduates to fill all of those positions. We have to draw from other places,” Lundry said.
These foreign applicants open up choices for Lundry to pick residents who have prior work experience and “astronomical” scores on American qualifying exams.
“Those people can be stellar stars,” she said.
Clinics under pressure to stay open
Dr. Chuck Thigpen, chief clinical and strategy officer at ATI Physical Therapy, wonders if he can maintain the job offers he made to international students graduating from US universities in January.
ATI has 450 open clinical roles across the United States, and 49 employees on the H-1B visa and 97 employees on the H-4 visa, which is a non-immigrant visa for spouses and unmarried children under 21 of the H-1B visa holders.
“There are way more jobs than we have even applicants applying for those jobs, so there’s not enough qualified therapists with licensure to fill our current workforce needs,” Thigpen said.
With these shortages and federal cuts to the health care industry, an exorbitant fee on hiring immigrants “sort of just piles on,” Thigpen said.
Thigpen says the real loss will be borne by Americans who really need the help.
“We’re already under severe pressure of just margin to keep clinics open and be sustainable,” he said. “So, if I now layer on an additional $100,000 per hire to bring in, I can’t do it. I just have to close clinics.”
Uncertain path for international graduates looking to the US
The H-1B fee has cast doubt on the future for international graduates.
Mykola, who fled the war in Ukraine in 2024, was a practicing doctor in Kyiv. (He asked that his full name not be included out of fear of backlash.)
He arrived in the United States through Uniting for Ukraine (U4U), a US government humanitarian parole program that allowed private US citizens to sponsor and help support Ukrainians who left because of the war. Mykola decided to prepare for exams to qualify to work as a doctor here.
As a parolee, he doesn’t qualify for the change-of-status process, according to Rakhel Milstein, an immigration lawyer and founder and CEO of Milstein Law Group. “He has to do a new H-1B petition, notifying the consulate. And those are exactly the people who are impacted,” Milstein said.
Mykola has spent thousands of dollars on qualifying exams, including textbooks, credential verification and application fees.
“I’m mainly applying to programs that are in underserved areas,” he told CNN, adding that he has seen how health care can be accessible in Ukraine and that he would like to help make it more accessible in the United States.
“I’m willing to help those underserved areas,” he said. “I know that for me, it’s not really a problem to serve there.”
Now, he waits for a residency program to accept his application and hopes to be sponsored for an H-1B visa so he can leave his parolee status behind. But with the new $100,000 fee, he wonders if those sponsorship offers will come.