Kentucky Businesses Address Impact of New Immigration Law Changes

Key Takeaways

• On May 29, 2025, DHS listed Louisville and three Kentucky counties as sanctuary jurisdictions, risking federal funding cuts.
• Kentucky House Bill 344 bans sanctuary policies, requires police cooperation with federal immigration enforcement, and mandates E-Verify use.
• DHS expanded expedited removal and added 64,716 H-2B visas for 2025, affecting Kentucky employers and immigrant workers.

Kentucky businesses are facing a wave of new immigration policies and enforcement measures that are reshaping how they hire, retain, and support workers. On May 29, 2025, the U.S. Department of Homeland Security (DHS) released a new Sanctuary Jurisdictions List naming nearly 600 cities and counties across the United States 🇺🇸, including four in Kentucky: Louisville, Franklin, Campbell, and Scott Counties. This move follows an executive order from President Donald Trump in April 2025, which threatens to cut off federal funding to any jurisdiction that does not fully cooperate with federal immigration enforcement.

The changes come as Kentucky’s economy, especially its manufacturing and agricultural sectors, continues to rely heavily on immigrant workers. With about 75,000 undocumented immigrants in the state—making up 1.6% of the workforce—businesses are worried about the impact of stricter enforcement and new state laws. The situation is further complicated by the introduction of Kentucky House Bill 344 (HB 344), which would ban sanctuary policies and require local police to help federal immigration agents.

Let’s break down what these changes mean for Kentucky businesses, immigrant families, and local communities.

Sanctuary Jurisdictions List: What It Means for Louisville and Kentucky

The Sanctuary Jurisdictions List published by DHS is a direct response to President Donald Trump’s executive order. The list identifies cities and counties that, according to DHS, do not fully cooperate with federal immigration enforcement. Louisville, the largest city in Kentucky, is one of the four areas in the state named on the list.

Why is Louisville on the list? In 2017, Louisville passed an ordinance that limits how local police can work with federal immigration agents. Under this rule, police cannot join immigration raids unless there is a threat of violence, and they cannot arrest undocumented immigrants unless there is a federal criminal warrant. Mayor Craig Greenberg has said that these policies are important for building trust with immigrant communities and keeping the city safe.

After the new list was released, Mayor Greenberg stated on May 30, 2025, that Louisville will keep its current policies until DHS gives more details. He stressed that immigrants are vital to the city’s economy and culture.

What’s at stake? If DHS decides that Louisville and the other named counties are not following federal law, they could lose millions of dollars in federal funding. This money supports everything from police and fire departments to public health programs.

State Legislation: Kentucky House Bill 344 and Its Impact

At the same time, Kentucky lawmakers have introduced House Bill 344 (HB 344), called the “Lawful Immigration System Act of 2025.” This bill would:

• Ban sanctuary policies: State and local governments could not pass any rules that limit cooperation with federal immigration enforcement.
• Require police cooperation: Local police would have to help federal agents and share information about people’s immigration status.
• Increase compliance checks: Businesses would likely need to use E-Verify, a federal system that checks if employees are allowed to work in the United States 🇺🇸.

The bill is sponsored by J. Bauman and T. Roberts and is still being debated in the Kentucky legislature. Supporters say it will help enforce immigration laws and protect jobs for U.S. citizens. Opponents, including the ACLU of Kentucky, argue that it will hurt civil rights, make immigrants afraid to report crimes, and take away local control.

Federal Policy Changes: New Programs and Enforcement

Several new federal policies are also affecting Kentucky businesses and immigrant workers:

1. Voluntary Departure Program
– Launched on May 5, 2025, by the Trump administration.
– Offers $1,000 and a free airline ticket to undocumented immigrants who agree to leave the United States 🇺🇸 on their own.
– Uses the CBP Home app (formerly CBP One) to help people register and arrange travel.
– People who sign up are less likely to be detained while they wait to leave.

2. Expanded Expedited Removal
– Since January 2025, DHS can now quickly deport anyone who cannot prove they have lived in the United States 🇺🇸 for at least two years.
– This policy is not just for people caught near the border—it applies anywhere in the country.

3. Birthright Citizenship Revision
– A new executive order says that only children born to U.S. citizens or lawful permanent residents will get automatic citizenship.
– This change affects even children born to parents with temporary visas.
– Legal challenges are underway, and the final outcome is still uncertain.

4. H-2B Visa Cap Increase
– On May 15, 2025, DHS and the Department of Labor announced 64,716 extra H-2B visas for temporary non-agricultural workers.
– 44,716 visas are for workers who have had H-2B visas before, and 20,000 are for people from certain countries in Central America and the Caribbean.
– Employers must show that they will suffer “irreparable harm” if they cannot hire these workers.

How These Changes Affect Kentucky Businesses

Labor Shortages and Hiring Challenges

Kentucky’s manufacturing and agricultural sectors depend on immigrant workers, especially for jobs that are hard to fill. With 35,000 undocumented immigrants working in the state, any policy that makes it harder for them to stay or work legally can cause big problems for employers.

• Stricter enforcement means more workers may leave or be deported, making it even harder to fill open jobs.
• HB 344 would force businesses to check every worker’s documents more carefully, increasing paperwork and the risk of fines.
• The H-2B visa increase helps some employers, but the process is complicated and only covers certain types of seasonal work.

Compliance Burden

If HB 344 becomes law, businesses will need to use E-Verify for all new hires. This system checks if someone is allowed to work in the United States 🇺🇸, but it can be confusing and time-consuming, especially for small businesses.

• Employers must keep detailed records and respond quickly to any questions from federal agencies.
• Mistakes can lead to fines or even criminal charges.

Uncertainty and Planning Problems

With so many changes happening at once, it’s hard for businesses to plan for the future. They don’t know if they will have enough workers, what rules they need to follow, or how much it will cost to stay in compliance.

How Immigrants and Their Families Are Affected

Increased Deportation Risk

The expanded expedited removal policy means that anyone who cannot prove they have lived in the United States 🇺🇸 for two years can be deported quickly, often without seeing a judge. This puts many families at risk, especially those who have been in Kentucky for only a short time.

Reduced Local Protections

If HB 344 passes, cities like Louisville would have to help federal agents find and arrest undocumented immigrants. This could make people afraid to call the police, even if they are victims of crime.

Legal Uncertainty

The new birthright citizenship rule has created confusion for families with children born in the United States 🇺🇸. Until the courts decide if the rule is legal, many families do not know if their children will be citizens.

Step-by-Step: How to Apply for an H-2B Visa in 2025

For Kentucky businesses that need seasonal workers, the H-2B visa program is a key option. Here’s how the process works for fiscal year 2025:

1. Check Eligibility: The employer must show that they will suffer “irreparable harm” if they cannot hire H-2B workers.
2. File a Petition: Submit the petition to the Texas Service Center by September 15, 2025. You can find the official H-2B visa application form and instructions here.
3. Timing: For jobs starting between May 15 and September 30, 2025, file no earlier than April 21, 2025. For country-specific allocations, file as soon as possible after December 2, 2024 (first half) or March 20, 2025 (second half).
4. Worker Selection: 44,716 visas are for returning workers, and 20,000 are for people from select countries.
5. Approval and Onboarding: Once approved, workers can start their jobs as listed in the petition.

Employers must follow all deadlines and provide accurate information to avoid delays or denials.

Multiple Perspectives: What Stakeholders Are Saying

Business Community

Many Kentucky business owners are worried that stricter enforcement and less local control will make it even harder to find workers. They say that U.S. citizens often do not want the jobs that immigrants fill, especially in factories and on farms. Some fear that losing federal funding could also hurt local services that businesses rely on.

Advocacy Groups

Groups like the ACLU of Kentucky argue that HB 344 and federal enforcement measures will make immigrants afraid to report crimes or work with police. They also say that these policies could lead to racial profiling and harm the state’s economy by driving away workers.

Policy Analysts

Supporters of stricter enforcement, such as the America First Policy Institute, believe that mandatory E-Verify and ending sanctuary policies will stop illegal immigration and help raise wages for U.S. citizens. Opponents counter that these measures could disrupt local economies and violate civil rights.

As reported by VisaVerge.com, the debate over immigration’s economic impact is not new. Some groups focus on the costs to public services, while others highlight the taxes and growth that immigrants bring to Kentucky.

Background: How Kentucky Got Here

Kentucky’s immigrant population has grown quickly since 1990, especially from Latin America and Asia. While immigrants are still a small part of the state’s total population, they are essential in certain industries.

Louisville’s sanctuary policy dates back to 2017, when the city decided to limit how police work with federal immigration agents. This was meant to build trust with immigrant communities and encourage people to report crimes without fear.

Looking Ahead: What’s Next for Kentucky Businesses and Immigrants

The future is uncertain. Several things could change the situation in the coming months:

• Federal lawsuits over birthright citizenship could change who is considered a U.S. citizen.
• The fate of HB 344 in the Kentucky legislature will decide if local governments can keep their own immigration policies.
• DHS clarification on the Sanctuary Jurisdictions List will determine if cities like Louisville lose federal funding.
• Possible new executive orders or changes in federal law could further reshape the immigration landscape.

Businesses, immigrants, and local governments will need to stay alert and be ready to adapt as new rules and court decisions come out.

Practical Guidance for Kentucky Employers and Immigrants

• Employers: Review your hiring and record-keeping practices. Make sure you understand how to use E-Verify and keep up with changing rules. If you need seasonal workers, apply for H-2B visas as early as possible and keep track of all deadlines.
• Immigrants: Keep copies of any documents that show how long you have lived in the United States 🇺🇸. If you are worried about your status, talk to a trusted immigration lawyer or advocacy group.
• Local officials: Stay in contact with DHS and state lawmakers to understand how new policies will affect your community.

For the latest updates on Kentucky legislation, visit the Kentucky Legislative Research Commission.

Summary Table: Key Recent Immigration Policy Changes Affecting Kentucky Businesses

Takeaways and Next Steps

Kentucky businesses and immigrant families are facing a period of rapid change. The new Sanctuary Jurisdictions List puts cities like Louisville under pressure to change their policies or risk losing federal funding. HB 344 could force all local governments to help with federal immigration enforcement, while new federal programs make it easier to deport people and harder for some children to become citizens.

Employers should review their hiring practices and be ready for more paperwork and checks. Immigrants should keep records and seek legal advice if needed. Local leaders must balance federal demands with the needs of their communities.

The situation is still developing, and more changes are likely in the months ahead. Staying informed and prepared is the best way to handle these challenges as Kentucky’s immigration landscape continues to shift.

Learn Today

Sanctuary Jurisdictions List → A DHS list naming cities and counties that limit cooperation with federal immigration enforcement.
House Bill 344 (HB 344) → Kentucky legislation banning sanctuary policies and requiring local police cooperation with federal immigration authorities.
E-Verify → A federal online system that verifies workers’ legal authorization to work in the United States.
H-2B Visa → A temporary non-agricultural worker visa allowing foreign workers to fill seasonal jobs in the U.S.
Expedited Removal → A DHS policy allowing quick deportation of immigrants lacking proof of two years’ continuous U.S. residence.

This Article in a Nutshell

Kentucky faces major immigration policy shifts as Louisville joins the DHS Sanctuary Jurisdictions List. New state bill HB 344 demands police aid federal enforcement, while increased H-2B visas offer seasonal worker relief amid stricter deportation and legal uncertainties impacting businesses and immigrant families.
— By VisaVerge.com