Staying Competitive: How Policy Changes Impact Innovation

You’ve probably read a lot about the recent changes to the H-1B visa program. As reported by The New York Times, beginning September 20, 2025, “Companies that want to hire employees from other countries using the popular H-1B visa program now have to pay $100,000 per worker.” It remains unclear whether the fee will be due on change of status petitions. Clarifying memos from U.S. Customs and Border Protection and Citizenship and Immigration Services that scaled back the Executive Order were silent on this. Historically such petitions were not treated as new (original) petitions, but it’s an important consideration since the original intent was to charge the fee each year any sort of H-1B petition was submitted. 

The Department of Homeland Security (DHS) has also proposed a rule that would change the admission period for F-1 visas—a type of non-immigrant student visa that allows foreign nationals to enter the United States to pursue full-time academic study at an accredited college, university, high school, or other academic institution—from “duration of status” to a fixed time period, requiring a formal application for an extension for the full OPT or STEM Optional Practical Training (OPT) period. This would complicate the process by requiring an explicit extension of status with U.S. Citizenship and Immigration Services concurrent with an OPT/STEM OPT application if the fixed admission period ends before the training concludes. While most of the students on F-1 or J-1 visas do not later go on H-1Bs, this whole group is important to both US innovation and as a workforce pipeline.

The Bureau of Labor Statistics estimates that there will be 3.9 million computing-related jobs in the U.S. by 2033, which includes Artificial Intelligence specific roles such as Machine Learning Engineers, AI Risk Auditors, AI Ethics Officers, and Prompt Engineers. It also includes a predicted rise in the need for Information Security Analysts Cybersecurity Risk Managers. However, only a third of these positions can be filled with the current pipeline of  U.S. computing bachelor’s degree recipients. There’s a strong likelihood that changes to the H-1B visa system will further strain the existing tech talent deficit. While larger companies might be able to absorb these fees, startups and smaller companies are likely to find the fees prohibitive, leading to “brain drain” as foreign talent finds employment elsewhere. The United Kingdom, Canada, Germany, and others are stepping into the void, offering clear, streamlined pathways to procure visas, positioning themselves to recruit foreign tech talent. 

New fees associated with H-1B visas make it more important than ever to broaden participation in computing at every level. 

Sustaining U.S. leadership in science, technology, and innovation (STI) requires bold action to expand the nation’s STEM talent pipeline and ensure global competitiveness. Although the U.S. currently leads in R&D investment and groundbreaking discoveries, global competition is accelerating. Even within the U.S., temporary visa holders earn more than half of doctoral degrees in computer and information sciences (59%), engineering (60%), and mathematics and statistics (54%)—all fields crucial for national security and economic prosperity1. Similarly, 60% of computer science master’s degrees awarded in 2022-2023 went to international students, underscoring the nation’s increasing dependence on global talent to sustain its high-tech workforce. In 2022, the U.S. Patent and Trademark Office awarded 47% of patents to domestic inventors, and 53% to foreign inventors. Meanwhile, the U.S. R&D system relies heavily on international talent, leaving critical gaps in domestic STEM capacity and opening potential security risks. This innovation engine is severely threatened by the new H-1B visa requirements.

For more than 20 years, NCWIT has pioneered strategic initiatives that strengthen and expand the nation’s technology talent pool (K-12 through career). These initiatives are built on the highest research-backed standards, ensuring our work is impactful and sustainable. Given the changes and trends mentioned above, such approaches are more important now than ever. It is imperative that educators and employers know the most effective ways to educate students with a wide range of backgrounds for the technical workforce, ensuring the nation’s innovation ecosystem remains strong, dynamic, and forward-looking. 

Why is there a skills gap?

As mentioned above, the technology worker talent gap is growing and is exacerbated by new H-1B visa costs in critical fields such as cybersecurity, artificial intelligence, quantum computing, and engineering. Some of the national factors that contribute to the talent gap include:

  • EDUCATIONAL PIPELINE CHALLENGES: Many traditional education systems struggle to keep up with the rapidly changing technology landscape. Curricula in K-12 and higher education often lag behind industry needs, leaving graduates underprepared for modern tech roles.
  • LACK OF ACCESS AND OPPORTUNITY: Broadening participation in technical education strengthens the overall talent pool. Women, people from underrepresented racial and ethnic groups, and individuals from low-income backgrounds often lack equal access and opportunity for technical education and employment.
  • GEOGRAPHIC AND ECONOMIC BARRIERS: Training opportunities are often concentrated in major urban areas with robust tech ecosystems, leaving rural or economically disadvantaged regions with limited possibilities. This geographic concentration further exacerbates the talent disparity and local economic strength across the country.

Filling these gaps requires engaging and supporting more individuals who demonstrate engineering and computational thinking skills that allow them to solve unexpected problems. These engineering principles need to be introduced from an early age, as research has shown an achievement gap begins building between racial and gender groups in STEM subjects during elementary school.

To bridge the talent gap domestically and remain competitive in the global marketplace, it is essential to broaden participation across all segments of society.

How do we fill the gap?

NCWIT’s research-backed, ecosystem-based approach works to bridge the gap

  1. TEACH ENGINEERING DESIGN SKILLS EARLY: NCWIT’s Teach Engineering program (TE) encourages and empowers educators intimidated by the prospect of bringing engineering design into their classroom by offering access to a free digital library that provides standards-aligned, simple activities, as well as the educational support systems and videos needed to help educators succeed.
  2. EDUCATE PROFESSIONAL SCHOOL COUNSELORS ON TECH FIELDS AND CAREERS: Counselors for Computing (C4C) empowers counselors with knowledge, resources, and confidence to equip students for career success in a technologically driven world. By connecting computing and technology education to essential career readiness skills and providing counselors with up-to-date information about labor market trends and emerging technologies, C4C ensures that students are prepared for the jobs of the future.
  3. GET AHEAD OF RAPIDLY ADVANCING FIELDS: Through its role in the Elevate Quantum Tech hub, NCWIT is leading the effort to increase student access to STEM and quantum fields, positioning the country for a growing need for a skilled quantum workforce.
  4. FOSTER A COMMUNITY THAT ENCOURAGES PERSISTENCE: Aspirations in Computing offers more than 30,000 technologists a unique longitudinal experience that includes a multitude of engagement opportunities ranging from award programs to mentorship, educational programming, and career fairs.
  5. WORK WITH ORGANIZATIONS TO CREATE CULTURES THAT ALLOW ALL STUDENTS AND EMPLOYEES TO THRIVE: NCWIT works with organizations and individuals to help ensure that educational and work environments are places where people are encouraged to expand their skills, pursue meaningful achievements that accelerate technological development, and build fulfilling careers based on their talents and efforts.

1. https://ncses.nsf.gov/pubs/nsb20243/talent-u-s-and-global-stem-education-and-labor-force

NCWIT
Scroll to Top