How Trump’s visa crackdown could still hit Tennessee despite carveouts

(TENNESSEE) Tennessee employers, universities, and hospitals are still bracing for deep disruption from President Trump’s 2025 immigration moves, despite new carve-outs announced this fall. At the center is the $100,000 H-1B fee, which the administration says applies only to new H-1B applicants outside the United States 🇺🇸 and not to people already in the country seeking an extension or a change of status.

The fee, effective September 19, 2025, arrives alongside broader entry bans and added scrutiny that business leaders and immigration attorneys say are chilling hiring and slowing projects across the state. According to analysis by VisaVerge.com, the exceptions help a subset of workers but leave core barriers in place, particularly for companies that need to recruit talent from abroad quickly.

Policy changes — what was announced

• The administration confirms the $100,000 H-1B fee targets new filings for workers outside the country.
• The fee does not apply to renewals for current H-1B workers in the United States or to those switching status while staying in the country.
• That clarification followed lawsuits and intense pressure from employers and advocacy groups.

Even with the carve-outs, Tennessee companies that relied on steady inflows of engineers, data analysts, and medical specialists say the message is clear: recruiting from outside the United States now carries high cost, long odds, and added risk.

Related travel and visa restrictions

• A June 2025 Executive Order imposes a full entry ban on nationals from 12 countries (examples: Afghanistan, Iran, Libya, Somalia, Sudan, Yemen).
• The order sets partial bans on B-1, B-2, F, M, and J visas for nationals from seven more countries, including Cuba, Venezuela, and Laos.
• Exceptions were carved out for:
  • Diplomats
  • U.S. lawful permanent residents
  • Dual citizens
  • Immediate family of U.S. citizens
  • Selected athletes
  • Persons whose entry serves a defined national interest

Administrators and employers say the exceptions are narrow and difficult to use at scale.

Impact on Tennessee’s workforce

Healthcare

• Tennessee recently relaxed licensing rules to allow foreign doctors to practice without repeating U.S. residencies, which helped fill gaps—especially outside major cities.
• The new visa limits now choke the pipeline of new international medical graduates and specialists entering under standard nonimmigrant categories.
• Hospitals warn of:
  • Rising wait times
  • Delayed clinic openings
  • Increased pressure on emergency departments
• Rural communities are especially exposed; many clinics depend on foreign-trained doctors and allied health staff to stay open.

Technology and advanced industries

• Companies such as Oracle and Amazon expanding in Nashville have historically relied on H-1B hires for niche roles requiring advanced training.
• The H-1B fee and a heightened compliance environment make it harder to recruit scarce skills from abroad.
• Reported company responses:
  • Offshoring teams or shifting projects to existing overseas hubs
  • Pausing planned local expansions or new lines of work
• Consequences for Tennessee:
  • Slower local job creation
  • Reduced vendor growth
  • Fewer internship and training opportunities for students

Universities and research labs

• Graduate students and visiting scholars from affected countries face denials or long delays.
• The national interest exception exists but is described by leaders as uncertain and hard to plan around.
• Large research programs (e.g., St. Jude, UT-Battelle) that rely on multinational teams are seeing timeline disruptions.

The “chilling effect”

• Even when exceptions apply (in‑country renewals, for example), employers worry that later international travel by the worker could trigger audits or other problems.
• Legal teams recommend caution; hiring managers sometimes avoid roles that may require future immigration steps.
• Result: narrower applicant pools and project delays of months.

Legal and business responses

• Business coalitions, including the U.S. Chamber of Commerce, argue the $100,000 H-1B fee contradicts congressional intent and harms U.S. competitiveness.
• Their warnings:
  • Blanket pricing measures and broad bans push investment and research overseas.
• The Department of Homeland Security retains discretion for national interest exceptions, but:
  • Criteria are tight
  • Approvals can be slow or uneven
• The administration can change the list of banned countries or expand/alter visa limits at any time, increasing unpredictability for Tennessee employers planning 6–18 months ahead.

Practical consequences for families and students

• Families face difficult trade-offs: a physician may extend status while in the U.S., but family members from banned-list countries could be blocked from visiting under B-2 limits.
• Graduate students admitted to programs may still face weeks of uncertainty while waiver requests are processed.
• Some international students are already choosing schools in Canada 🇨🇦 or Europe for steadier entry rules.

Statewide numbers and economic context

• 3,149 H-1B approvals in Tennessee for fiscal year 2025.
• Key sectors affected: logistics, life sciences, advanced manufacturing, and software.
• The new fee targets the primary route many teams use to bring in talent not available locally.

Narrow paths forward and mitigation strategies

• National interest exception can apply for roles tied to:
  • Critical infrastructure
  • Defense-related research
  • Public health
• Actions employers and institutions are taking:
  • Documenting how a candidate’s work serves urgent needs
  • Planning earlier and building longer hiring timelines
  • Budgeting for increased compliance costs
  • Adopting hybrid staffing (remote offshore teams + smaller local cores)
  • Broadening domestic recruitment and expanding telehealth (hospitals)
  • Lobbying for clearer standards and faster national interest processing (businesses)
  • Setting up student support teams and travel advisories (universities)
• North American options:
  • TN visas for Canadian and Mexican professionals under USMCA remain available (as of October 2025) but are under review as part of a wider trade agenda.

Key takeaways and current facts

• The $100,000 H-1B fee applies to new applicants outside the country, not to in‑country renewals or status changes.
• The June 2025 Executive Order bars full entry for nationals of 12 countries and restricts B-1, B-2, F, M, J visas for nationals of seven more.
• Exceptions exist but are narrow, slow, and uncertain.

Tennessee’s employers and institutions say these steps together will shape hiring, research, and patient care through the coming year. The stakes are highest in rural healthcare, fast-growing tech corridors in Nashville, and research labs that depend on global teams.

For high-level guidance on eligibility and process steps, workers and students can review official program information on the U.S. Citizenship and Immigration Services H-1B page: USCIS H-1B Specialty Occupations. Attorneys caution that this page does not reflect Tennessee-specific strategies and that individual cases vary, especially under current national interest and travel ban rules.

As legal challenges proceed, state leaders will monitor how quickly the administration adjusts criteria and how consistently agencies apply exceptions. Employers, universities, and hospitals in Tennessee are planning for a prolonged period of uncertainty—and are hoping for clearer rules, faster reviews, and durable pathways before the next hiring and admissions cycles begin.