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H-1B visa denial rates could rise under new administration

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H-1B visa denial rates could rise under new administration

Craig Johnson
| December 17, 2024
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Denial rates for H-1B visas remain low but could increase under President-elect Donald Trump’s administration, according to research by the National Foundation for American Policy. The research also tracked firms using H-1B visas and found that automaker Tesla, led by Trump advisor Elon Musk, ranked among the top employers on the list this year after significantly ratcheting up its use of the visa. 

H-1B visas are often used to bring IT workers and healthcare professionals to the US. SIA’s lexicon describes H-1B as a visa classification that allows foreign workers with at least the equivalent of a US bachelor’s degree to enter the US temporarily in order to perform a specialty occupation.  

The NFAP reported the H-1B denial rate for initial employment — new employees — was 2.5% in the 2024 federal fiscal year ended Sept. 30. That compares to 3.5% in fiscal year 2023 and 2.2% in fiscal year 2022. 

However, the denial rate for 2024 was far lower than 24% rate in the 2018 fiscal year and 21% in the 2019 fiscal year. Policy changes during the Trump administration caused the higher percentages, according to the NFAP report. Those changes have since been overturned by a court. 

“These policies included memos that increased H-1B denials and time-consuming Requests for Evidence, policies that judges later ruled unlawful,” according to the NFAP. 

The NFAP noted that the Trump administration may make US immigration policies more restrictive. 

Other reports have also raised concern about denial rates, Crain’s Grand Rapids Business reported in an article by Elizabeth Schanz. The issue was covered by NBC as well as in a post by law firm Jackson Walker. 

Top H-1B Users 

NFAP’s research also included the top H-1B visa users. It noted Tesla had 742 approved H-1B visas in fiscal year 2024, nearly double its totals of 328 in the previous fiscal year and 337 in fiscal year 2022. Tesla has been contacted for comment.  

Still, Tesla only ranked 16th on the list of most-approved H-1B visas for initial employment. Amazon had the most at 3,871. It was followed by Cognizant at 2,504, Tata Consultancy Services at 1,452, IBM at 1,348, Microsoft at 1,264, HCL America at 1,248, Google at 1,058, Capgemini at 1,9141 and Meta Platforms at 920.  

Other findings in the NFAP include: 

  • Employers in these states had the most approvals of H-1B petitions for initial employment in fiscal year 2024: California, 23,590; Texas, 21,575; New York, 12,326; New Jersey, 11,188; and Virginia, 7,802. 
  • The average annual salary for an H-1B visa holder in computer-related occupations in 2023 reached $132,000. The median salary was $122,000. 
  • NFAP argues H-1B visas are good for the economy. It cites a study that found restrictions on H-1B visas drive jobs and innovation out of the US.