New US H-1B policy: Economic, Social, and strategic impacts for Central America

A Radical Change in US Immigration Policy

On September 19, 2025, President Donald Trump’s administration issued a proclamation that marks a turning point in the use of the H-1B visa. The rule establishes that all new applications in this category, used mainly by highly skilled workers, must be accompanied by a supplementary payment of $100,000. Failure to comply may result in the denial of the application and beneficiaries will be barred from entering the country for a period of 12 months.

The official argument is to protect the U.S. labor market, reduce abuses in the program, and prioritize higher-paying profiles. However, the measure has generated controversy: the technology industry and business organizations anticipate lawsuits, considering that it exceeds executive authority and will negatively impact competitiveness.

For U.S. companies, especially startups and small and medium-sized businesses, this measure means an immediate increase in the cost of hiring foreign talent. This additional payment makes the use of the H-1B visa unfeasible in many cases, forcing companies to rethink their recruitment strategies, resort to other alternatives within the various visa programs, or simply limit international mobility.

At the same time, sectors such as technology, academia, and research anticipate a reduction in the arrival of highly qualified professionals, which could create gaps in critical areas of innovation.

The measure imposing an extraordinary fee of US$100,000 on certain H-1B applications is not without legal and political questions.

First, several analysts and specialized law firms have warned that lawsuits could be filed against the provision, alleging that it exceeds the authority of the Executive Branch and contradicts the fee rules established by Congress. Some states, such as California, have even expressed their intention to explore legal action against this policy.

Second, the technology and business sector, the main user of the H-1B program, has reacted with strong concern and is expected to actively pursue litigation or support initiatives to curb the measure, given the direct impact it would have on the hiring of international talent.

Finally, it should be noted that the future of the provision will also depend on the political landscape. In the United States, changes in administration often translate into significant shifts in immigration policy. A new administration could modify, soften, or even repeal the measure, although there is no guarantee that this will happen immediately.

Consequently, the impact of this reform must be analyzed not only in terms of its immediate application, but also considering the likelihood of legal challenges and the possibility of political reversal in the short or medium term.

Central America: investment, talent ecosystem, and immigration benefits

Given this scenario, Central America, which is home to numerous subsidiaries of U.S. companies and has developed a dynamic ecosystem in technology services, medical devices, advanced manufacturing, corporate services, semiconductors, the food industry, and scientific research, will face both direct and indirect impacts.

However, the situation also represents a strategic opportunity. The region already has investment frameworks and stimulus programs in place to attract foreign capital and retain specialized talent, which vary according to each country’s legislation but share the same objective: to consolidate Central America as a nearshoring destination. Among the most relevant mechanisms are:
 

• Free trade zones and technology parks, with tax exemptions, import/export facilities, and access to high-level technological infrastructure.
• Free trade agreements and tariff preferences, which reduce barriers and streamline international trade.
• Incentives for innovation and training, through upskilling and reskilling programs aligned with IT, engineering, and data analysis demands.
• Tax benefits for R&D, aimed at companies that invest in research, high value-added job creation, and technology transfer.
• Stimuli for renewable energy projects, with tax and regulatory incentives
• FDI attraction programs, which include assistance with paperwork, permits, and legal advice for the establishment of subsidiaries and service centers.
• Bilateral and regional agreements that facilitate trade, technological cooperation, and professional mobility, a key aspect for multinationals seeking alternatives to H-1B visa restrictions.
• Immigration benefits, such as work visas or temporary residencies for investors and specialized professionals, which allow foreign talent to be incorporated while immigration processes are underway.

Together, these tools and programs strengthen Central America’s position as a regional hub for services and development, driving investment attraction, talent training, and the retention of highly qualified professionals. In addition, the existence of regional mobility agreements facilitates the rotation of key employees and the exchange of knowledge without facing onerous barriers.

In this way, the region not only mitigates the effects of the US reform on the H-1B visa, but also capitalizes on the moment to consolidate itself as a strategic nearshoring platform and hub of competitiveness for global companies.

Incentives and examples in Central America

Attracting and retaining talent: the new challenges

The H-1B reform redefines the rules of the game in professional mobility and skilled labor, creating both challenges and strategic opportunities. With limited international mobility, higher costs, and new barriers to temporary transfers to the US affect motivation and professional development, increasing competition for local talent in the region. This forces companies to strengthen the retention of key employees and prevent them from leaving for other markets.

In this scenario, Central America must take advantage of the situation as an opportunity to strengthen its human capital, invest in internal training programs, and establish academic and business partnerships.

The key is to restructure attraction and retention strategies, invest in local talent, and take advantage of investment programs, nearshoring, and immigration benefits to consolidate the region as a strategic center for services and professional development. Thanks to these immigration policies, Central America is positioning itself as an effective alternative to U.S. restrictions, allowing highly qualified professionals who cannot access H-1B visas or other U.S. categories to settle in the region, continue their professional development, and add value to subsidiaries and multinational companies, thus preventing the brain drain to other markets.

One of the challenges that must be addressed in order to attract and retain foreign talent is the adaptation or reform of existing immigration processes so that the flow of migrants is not unnecessarily hindered by excessive bureaucracy.

A key element is proximity to headquarters, as matching schedules and geographical proximity facilitate operational coordination and communication between teams. This ensures that employees maintain their connection to strategic projects and, at the same time, promotes the retention of foreign talent through a flexible and secure immigration framework. This strengthens a competitive and sustainable regional ecosystem of specialized professionals.

Conclusion

The U.S. H-1B reform transforms access to the U.S. labor market and reconfigures the dynamics of attracting and retaining talent in Central America. For the region, it represents a call to invest in human capital, strengthen local ecosystems, and position itself as a strategic hub for services and talent.

Well managed, this situation can become a historic opportunity to consolidate regional competitiveness in the face of global changes.

blplegal.com