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Trump’s $100,000 H-1B visa fee threatens rural schools and hospitals reliant on immigrant workers

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By SARAH RAZA, Associated Press

SIOUX FALLS, S.D. (AP) — When Rob Coverdale started his job in 2023 as superintendent of the K-12 Crow Creek Tribal School in South Dakota, there were 15 unfilled teaching positions.

Within nine months, he had filled those vacancies with Filipino teachers, the majority of whom arrived on the H-1B, a visa for skilled workers in specialty occupations.

“We’ve hired the H-1B teachers because we quite simply didn’t have other applicants for those positions,” Coverdale said. “So they’re certainly not taking jobs from Americans. They’re filling jobs that otherwise just simply we would not get filled.”

Now a new $100,000 fee for H-1B visa applications spells trouble for those like Coverdale in rural parts of the country who rely on immigrants to fill vacancies in skilled professions like education and health care.

The Trump administration announced the fee on Sept. 19, arguing that employers were replacing American workers with cheaper talent from overseas. Since then, the White House has said the fee won’t apply to existing visa holders and offered a form to request exemptions from the charge.

H-1Bs are primarily associated with tech workers from India. Big tech companies are the biggest user of the visa, and nearly three-quarters of those approved are from India. But there are critical workers, like teachers and doctors, who fall outside that category.

Over the last decade, the U.S. has faced a shortage in those and other sectors. One in eight public school positions are vacant or filled by uncertified teachers, and the American Medical Association projects a shortage of 87,000 physicians in the next decade. The shortages are often worse in small, rural communities that struggle to fill jobs due to lower wages and often lack basic necessities like shopping and home rental options.

H-1B and J-1 visas provide communities an option to hire immigrants with advanced training and certification. The J-1s are short-term visas for cultural exchange programs that aren’t subject to the new fee but, unlike the H-1B, don’t offer a pathway to permanent residency.

While large companies may be able to absorb the new fee, that’s not an option for most rural communities, said Melissa Sadorf, executive director of the National Rural Education Association.

“It really is potentially the cost of the salary and benefits of one teacher, maybe even two, depending on the state,” she said. “Attaching that price tag to a single hire, it just simply puts that position out of reach for rural budgets.”

A coalition of health care providers, religious groups and educators filed a lawsuit on Friday to stop the H-1B fee, saying it would harm hospitals, churches, schools and industries that rely on the visa. The Department of Homeland Security declined to comment and referred a query to its website.

The Crow Creek Tribal School system is marked by a sign in Stephan, S.D., Feb. 7, 2025. (Bart Pfankuch/South Dakota News Watch)

Filling classrooms where Americans won’t go

Coverdale said spots like Stephan, where Crow Creek is based, struggle to attract workers in part because of their isolation. Stephan is nearly an hour’s drive from the nearest Walmart or any place that sells clothes, he said.

“The more remote you are, the more challenging it is for your staff members to get to your school and serve your kids,” he said.

Among Coverdale’s hires is Mary Joy Ponce-Torres, who had 24 years of teaching experience in the Philippines and now teaches history at Crow Creek. It was a cultural adjustment, but Ponce-Torres said she’s made friends and Stephan is now a second home.

“I came from a private school,” she said. “When I came here, I saw it was more like a rural area … but maybe I was also looking for the same vibe, the same atmosphere where I can just take my time, take things in a much slower pace.”

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Associated Press

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