Tech layoffs hit Indians in United States: How the EB-5 program offers stability – ET Edge Insights

The United States remains the dream destination for millions from around the world. It offers unprecedented career opportunities, the world’s highest standard of living, impeccable infrastructure, civic services, and the world’s finest colleges and universities. The U.S. has long been a beacon for skilled professionals worldwide, especially from India, seeking better opportunities and a higher standard of living.  With its open market policies and plethora of opportunities, it has drawn thousands of skilled workers from India, who contribute significantly to the innovation and growth of American companies. However, recent tech layoffs have created instability for many of these professionals and they face unique challenges especially in today’s uncertain climate.  

Immigration Process is the Foremost Challenge  

The biggest challenge often arises from the strict U.S. immigration process. For instance, Indian immigrants on H-1B and L-1 visas are tethered to their employers. Without continued employer sponsorship, their visa falls into limbo, and they can’t live and work in the US.  

Increasing Layoffs in US-based Technology Companies placing future of Indian techies at risk 

In early 2024, news of layoffs by US-based technology companies made global headlines. So far this year, over 57,000 tech workers have been laid off in America1, including at tech giants like Google and Amazon. Both companies have suspended their US green card applications, citing increased application volumes, processing difficulties, and restructuring in the technology sector. This decision by Google and Amazon will impact thousands who expected their employer to put them on the path to permanent residency. For many, the dreaded 60-day countdown to visa cancellation has already begun.  

Currently, due to large-scale layoffs and, many Indians working in the US on H-1B and L-1 visas are experiencing uncertain future in the US due to their visa status. With huge technological disruptions expected well into the future, the restructuring in the technology sector will likely continue2 for the next few years. Hence, unless many Indian H-1B and L-1 visa holders employed in the technology sector act soon to secure their status, they’ll remain at the mercy of their employers and possibly jeopardize their American Dream. 

New Rules from the Department of Homeland Security (DHS) will further impact hiring decisions 

In a new proposed rule, the Department of Homeland Security (DHS) would require that employers pay $4,000 to extend an H-1B visa and $4,500 to extend an L-1 visa as part of the 9/11 Response and Biometric Entry-Exit Fee. Currently, employers only pay the fee for initial and change of employer petitions. This change significantly impacts the H-1B visa program, which is a crucial pathway for Indian IT professionals to work in the U.S. In 2022, Indians secured 77% of the 320,000 approved H-1B visas. The additional fees will increase costs for employers, particularly those heavily reliant on H-1B and L-1 visa holders, potentially leading them to reconsider their hiring strategies. 

Hence, in the face of layoffs and DHS’s new rules, Indian H-1B and L-1 visa holders will need a more secure and predictable route to U.S. permanent residency, and EB-5 program could be a viable option. The EB-5 visa ensures immigrants are not at the mercy of corporate layoffs and can secure a stable future for themselves and their families in the US.  

The EB-5 Immigrant Investor Program: An Alternative Pathway to secure a future in the U.S. 

Enacted in 1990, the EB-5 program allows immigrant investors to obtain U.S. permanent residency by creating at least ten jobs for U.S. workers through substantial investment. Initially designed for direct investments in small businesses, the program has evolved with the introduction of “regional centres,” which pool capital from multiple investors to meet job creation requirements through indirect job creation. 

Today, the minimum investment required for the EB-5 program is $1.05 million, with a reduced amount of $800,000 for projects in rural or high-unemployment areas. The program offers several benefits, including the ability for investors and their immediate family members to obtain permanent residence, flexibility to travel in and out of the U.S., and access to the same tuition rates at U.S. universities as residents. 

There’s another good reason for H-1B and L-1 visa holders to transition to an EB-5. The 2022 Reform and Integrity Act introduced concurrent filing, enabling immigrant investors to file for adjustment of status while their EB-5 application is pending. This provision allows for advance parole and an unrestricted employment authorization document (EAD), providing significant flexibility and security for investors and their families. 

 Conclusion 

Alternative pathways like the EB-5 Immigrant Investor Program offer a viable route to U.S. permanent residency for H-1B and L-1 visa holders. They provide greater control and stability for immigrant investors. As prospective immigrants consider their options, it is essential to weigh the benefits and challenges of each pathway carefully to make informed decisions that best suit their personal and professional goals. 

Disclaimer: The views expressed in this article are those of the author/authors and do not necessarily reflect the views of ET Edge Insights, its management, or its members