The Federal Government is not the only one facing a shutdown. Walmart, our favorite giant, has just announced that it will no longer hire new people. And of course, there is a reason behind it. In mid-September, the Trump Administration imposed a $100,000 fee for each H-1B visa application, the one companies use to hire qualified professionals from other countries. Trump says this will make companies hire more domestic professionals, but Trump, dear, not all the best minds are within our borders. So, Walmart and many other companies are thinking twice before hiring new staff.
A pause
Walmart currently has more than 2,300 employees with H-1B visas, mostly in tech and corporate management areas, but this new rule (published on September 19) has made them decide to freeze new hires, since not many companies are ready to pay $100,000 per worker. And that doesn’t necessarily mean hiring local talent, it actually means sacrificing innovation.
From the White House, they claim that the measure aims to “protect American jobs” but as we said, what it’s really causing is monumental chaos.
“The process has become practically inoperable. Companies don’t know how to proceed, and the Government is not providing clear guidelines”.
And indeed, companies don’t know how to pay the fee, and the system isn’t even ready to process it! A mess.
What is the H-1B visa
The H-1B visa allows U.S. companies to hire foreign professionals specialized in fields such as technology, engineering, medicine, or education.
Every year, the Government grants 65,000 standard visas plus 20,000 additional ones for people with postgraduate degrees.
And yes, big companies (like Amazon, Microsoft, or even Meta) depend on this program, as does Walmart. They need engineers, analysts, and developers, and there aren’t many of those (anywhere, that’s why “we import them”).
The Government defends its measure
From the White House, they defend the new fee, saying it aims to “prevent abuse” and ensure fair rules for Americans. They still believe companies want to replace local employees instead of improving systems and modernizing.
Criticism from the business world
The Vice President of the U.S. Chamber of Commerce, Neil Bradley, stated that this fee destroys competitiveness within the country and makes it impossible for small businesses to hire foreign talent to continue growing.
Is the government tripping up companies when it comes to innovation and technology?
Bradley also reminded that the H-1B system already has strict controls to prevent abuse, so doubling the costs makes no sense.
Walmart in the middle of the storm
It’s normal for the government to want to protect local employees, but many times, local talent is not enough, companies need (and want) more. Walmart has opened innovation and data centers across the country, hiring thousands of engineers and specialists, many of them foreign. Now everything seems much more complicated.
An uncertain future
Global talent is waiting at our country’s doors, but the reality is that many don’t want to risk fines, and not many companies can afford to pay $100,000 per worker.
Walmart’s decision to freeze hiring perfectly sums up the real impact of this immigration policy: less clarity, more uncertainty, and a job market stuck on pause while the rest of the world keeps moving forward.