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• The proclamation DOES NOT apply to individuals already in the U.S. on H-1B status, or to student visa holders on OPT seeking to change their status to H-1B.
• It applies only to individuals outside the United States who are being sponsored for H-1B visas and seeking entry. This is specifically aimed at the Indian IT outsourcing companies whose business model is to sponsor large numbers of foreign workers abroad and bring them into the U.S. on H-1B visas. They may shift to sourcing workers who arrived on student visas or to heavily utilizing L-1 visas.
• H-1B workers could also be affected if they ever travel abroad and require visa stamping in order to return to the United States, even if they are otherwise in valid status.
The proclamation isn’t terrible, but it falls short of truly helping American workers and STEM graduates. Companies like Google and Microsoft won’t be affected, because they source their foreign workers through L-1 visas or from those who arrived on student visas. So when @howardlutnick said tech companies support it, now we know why.
If the Trump administration truly wants to help American tech workers and STEM graduates, it needs to end the OPT program, which was created entirely through regulation. Otherwise, it isn’t serious about fixing this issue.
Not so fast, offshore folks. Here’s what’s coming for offshore and OPT.
• A $100,000 annual fee on H-1B entries is now in effect by presidential proclamation for an initial 12 months. That changes the math on body-shopping and staffing arbitrage overnight.
• The HIRE Act has been introduced to add a 25% excise tax on “outsourcing payments” and to deny tax deductions for those payments. If it passes, offshore vendor work aimed at U.S. consumers gets hit twice.
• Courts and cities are laying groundwork against caste bias in hiring, making the referral networks that exclude Americans a legal liability. Seattle’s caste ban has survived court challenges, and similar actions are gaining traction.
• Litigation risk is rising. A Ninth Circuit panel revived a class action alleging preference for foreign workers over U.S. citizens, signaling more lawsuits and discovery into hiring pipelines.
Bottom line. The offshoring arbitrage that locked out American grads is getting expensive, risky, and visible. Expect more scrutiny on OPT-to-H-1B pipelines and on any job reqs written to exclude citizens. The era of quiet gatekeeping is ending.

The Visa Trap: When Foreign Workers Realize the Ground Beneath Them Is Cracking
One week, you’re promised “easy applications” and a million more H-1Bs.
The next week, it’s a $100,000 fee, mandatory in-person interviews, and restrictions on where those interviews can even take place.
This is not stability. It’s whiplash.
• India’s Ministry of External Affairs called the $100,000 H-1B fee “deeply concerning” and warned of “serious humanitarian consequences for families already settled in the United States” (Al Jazeera, 2025).
• Nasscom, the largest IT industry body in India, said the new fee would “seriously disrupt Indian IT operations in the United States and threaten business continuity for major firms” (Reuters, 2025).
• The Hindustan Times editorial board wrote that the fee “effectively kills the programme” because “median salaries of H-1B holders make such a cost punitive and unsustainable” (Hindustan Times, 2025).
• Former NITI Aayog CEO Amitabh Kant declared bluntly: “This is India’s gain. The more Washington tightens, the more talent will stay here and build India’s future” (Times of India, 2025).
• The Washington Post reported that major employers had met with the White House days before the announcement, leaving workers convinced “their companies knew what was coming but chose not to warn them” (Washington Post, 2025).
• NDTV quoted corporate sources advising employees “to stay put inside the United States until the dust settles,” adding that “Microsoft, Amazon, and JPMorgan privately told foreign staff not to travel abroad” (NDTV, 2025).
• On Reddit’s r/Economics forum, one user wrote: “I sold my car in India, uprooted my kids, and moved here. Now I’m being told I might owe $100K every year just to keep my visa alive. How do you plan a life around that?” (Reddit, 2025).
• In r/ABCDesis, a viral thread described an Emirates flight at San Francisco International Airport: “Indians literally pleaded to get off the plane after hearing about the new rule. They didn’t want to risk being locked out if they left the country” (Reddit, 2025).
And it doesn’t stop there:
• In-person interviews are back, and third-country workarounds are ending. Applicants must interview in their own country of residence.
• Student visas are capped at four years. Language programs even shorter.
• Optional Practical Training (OPT) is openly discussed as being eliminated.
If you are here on a visa, you cannot trust what you hear on Monday to still be true on Friday. You cannot trust your employer to tell you what’s coming. And you cannot assume that yesterday’s path to residency will exist tomorrow.
The Trump administration has made more incremental restrictions on H-1B, OPT, and student visas in a few months than any administration in decades. The pattern is clear.
Foreign workers thought they were buying stability. What they got was a trap door.
Are big tech execs on suicide watch?

4. It lowers house prices in California in particular, and California has severe TDS
MolotovCocktail says
Banks get fucked? What's not to like about this. When do we ever see banks get fucked as opposed to the little guys?
https://m.youtube.com/watch?v=u9-0Nl2a32w
Interesting rant from Indian media. Turn on captions.
Banks get fucked? What's not to like about this. When do we ever see banks get fucked as opposed to the little guys?
Flee with unpaid debt is whole different than flee with unpaid asset.
stereotomy says
MolotovCocktail says
Banks get fucked? What's not to like about this. When do we ever see banks get fucked as opposed to the little guys?
Flee with unpaid debt is whole different than flee with unpaid asset.
Banks get fucked? What's not to like about this. When do we ever see banks get fucked as opposed to the little guys?
What a load of shit, mostly. Notice the entitlement they have?
stereotomy says
Banks get fucked? What's not to like about this. When do we ever see banks get fucked as opposed to the little guys?
As long as the Fed exists, they will print to prevent any pain to the biggest banks.
Some small banks might get hurt though.
Patrick says
stereotomy says
Banks get fucked? What's not to like about this. When do we ever see banks get fucked as opposed to the little guys?
As long as the Fed exists, they will print to prevent any pain to the biggest banks.
Some small banks might get hurt though.
Yeah, big banks don't make Silicon Valley Bank mistakes.
.
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