- Business groups warn that new policies are deepening labor shortages across agriculture, manufacturing, and healthcare sectors.
- A May twenty twenty-six mandate requires workers to return to home countries for green card processing.
- The American Farm Bureau predicts fourteen point five percent food price increases due to critical agricultural worker gaps.
Business groups warned Saturday that President Donald Trump’s immigration policies are deepening labor shortages across agriculture, manufacturing, healthcare and transportation, as employers confront worker departures, visa restrictions and longer processing delays.
The warnings focus on policies that could pull legally employed workers out of the United States or make new hires more expensive. Employers say the result is already reaching farms, nursing homes, airports and technology companies.
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The administration says its approach will restore “integrity” and “security” to the immigration system. USCIS Director Joseph Edlow said a new asylum rule would redirect agency resources toward legitimate protection claims.
“For far too long the asylum system has been exploited for purposes of delay and work authorization, not legitimate claims of protection. this rule will help ensure that resources are directed to the timely adjudication of those claims instead of to those seeking to use the system as a loophole.”
Edlow made the statement July 27, 2026. On the same day, DHS General Counsel James Percival blamed delays on what he called “intentional delay by illegal aliens and the open borders attorneys who represent them.”
DHS Secretary Markwayne Mullin offered little prospect of a legislative response. Asked Aug. 1 at a National Governors Association meeting whether comprehensive immigration reform could address labor needs, Mullin replied: “Is immigration reform possible? No.”
The disagreement now centers on workers already holding jobs, not only on future entries. Employers and trade groups say several measures could remove people from payrolls before replacement workers arrive.
A new green card process could take workers away from their jobs
A USCIS memorandum issued May 21, 2026, changed the agency’s standard for adjustment of status. Under policy memorandum PM-602-0199, most noncitizens already working legally in the United States must now return to their home countries and complete green card processing through a U.S. embassy rather than adjust status inside the country.
The U.S. Chamber of Commerce and the American Alliance for Workforce and Border Security said the requirement could force employees to leave their jobs for months or years. The alliance launched July 9, 2026.
Employers pointed to Manila, where employment-based interviews face a three-year wait. A worker’s departure could therefore become an extended absence, especially when a company has no immediate substitute.
The dispute also includes temporary protected status. After a 2026 Supreme Court ruling, the administration began phasing out TPS for approximately 1.3 million immigrants, including 350,000 Haitians.
Mass layoffs in July affected janitors and cabin cleaners at East Coast airports, as well as workers in nursing homes. The National Association of Manufacturers said 70% of TPS holders participate in the labor force and often fill essential positions that employers struggle to staff.
Farms are counting applicants by the hundreds, not thousands
The American Farm Bureau Federation called the agricultural labor shortage the “single greatest threat to agriculture.” Its figures show the gap between available farm work and domestic recruitment.
In 2025, employers advertised 415,000 farm positions but received only 182 domestic applications. The figures have become a central argument against replacing foreign workers with an entirely domestic workforce.
Agriculture Secretary Brooke Rollins has pledged “no amnesty” for farm workers and is promoting a 100% American agricultural workforce. Farmers describe that goal as “unrealistic.”
Their warnings include food prices and harvests. Farm groups project that crops could remain unharvested and food prices could rise 14.5% by 2028.
The pressure is not limited to seasonal work. Workplace enforcement on farms, combined with the administration’s position on amnesty, could reduce the workforce during planting and harvesting periods.
Employers say visa costs could push technical jobs overseas
Manufacturers are also contesting a 2025 presidential proclamation that sought an additional $100,000 payment for certain H-1B petitions. The First Circuit Court of Appeals denied the government a stay in July 2026, while DHS continues pursuing the fee in court.
The National Association of Manufacturers said the charge could “price many H-1B visa holders. out of the U.S. labor market.” Manufacturing employers report more than 400,000 current open jobs and warn that high-tech positions could move offshore if companies cannot recruit through the program.
The sector faces another change involving international students. The administration is ending student “duration of status,” adding another restriction to the workforce pipeline described by manufacturers.
Healthcare employers report a different exposure. Nursing homes could lose up to 20% of registered nurses and aides under the consular processing mandate for EB-3 visas.
The consequences would arrive inside facilities that already depend on workers who have completed the required professional process. A departure can leave a shift uncovered.
Transportation rules add pressure to supply chains
Transportation companies are responding to Executive Order 14286, which imposes an English-proficiency requirement on commercial vehicle operators. Industry warnings focus on a shortage of drivers and other operators needed to move goods through supply chains.
The reported effects vary by sector:
| Sector | Policy pressure | Reported consequence |
|---|---|---|
| Agriculture | Farm enforcement and no amnesty | Unharvested crops and a projected 14.5% food-price increase by 2028 |
| Healthcare | Consular processing for EB-3 visas | Nursing homes losing up to 20% of registered nurses and aides |
| Transportation | Executive Order 14286 and English proficiency | Fewer commercial vehicle operators for supply chains |
| Manufacturing | H-1B fee and the end of student “duration of status” | More than 400,000 open jobs and possible offshoring of high-tech roles |
Business groups describe the combined disruptions as a “supply-shock.” They say the policies affect both people currently working in the United States and employers planning future hiring.
Business groups are seeking legal pathways while enforcement spending rises
More than 300 business organizations formed the American Alliance for Workforce and Border Security to lobby for legal pathways. The group argues that “the border is secure, but the economy isn't.”
Their campaign follows passage of the Secure America Act in June 2026. The law provided $70 billion for enforcement and prioritized deportations.
The alliance’s position places it against an administration that has emphasized enforcement and the removal of what officials characterize as immigration-system “loopholes.” The policy conflict now reaches multiple hiring systems at once: asylum-related work authorization, green card processing, TPS, H-1B petitions, student status and commercial driving.
The administration’s stated approach remains enforcement-led. The business groups are asking for a larger legal workforce pipeline while employers continue reporting vacancies in fields that depend on workers who cannot be replaced quickly.
This article provides general information and is not legal advice. Consult a qualified immigration attorney about your specific case.
