Trump admin’s $100k H-1B fee sparks staffing concerns in rural schools, healthcare relying on immigrants

A new $100,000 fee for H-1B visa applications could strain rural communities that rely on immigrant workers to fill critical roles in education and healthcare.

The Trump administration announced the fee on September 19, citing concerns that employers were replacing American workers with cheaper overseas talent. Existing visa holders are exempt, and the White House has provided a form to request further exemptions.

Rob Coverdale, superintendent of the K-12 Crow Creek Tribal School in South Dakota, highlighted the challenges this poses. When he started in 2023, 15 teaching positions were vacant, which he filled with Filipino teachers, most on H-1B visas. “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,” he told Associated Press.

H-1B visas are most commonly used by tech workers from India, who make up nearly three-quarters of approvals. But critical workers like teachers and doctors also rely on these visas to serve communities where domestic applicants are scarce. Over the past decade, rural areas have struggled to fill jobs due to lower wages and limited amenities. The American Medical Association projects a shortage of 87,000 physicians over the next decade, while one in eight public school positions remains vacant or filled by uncertified teachers.

Melissa Sadorf, executive director of the National Rural Education Association, emphasised the impact on budgets. “It really is potentially the cost of the salary and benefits of one teacher, maybe even two, depending on the state,” she said, in a report by AP. “Attaching that price tag to a single hire, it just simply puts that position out of reach for rural budgets.”

The fee has prompted a coalition of healthcare providers, religious groups, and educators to file a lawsuit challenging its implementation, citing the potential harm to hospitals, schools, and other essential services. The Department of Homeland Security declined to comment.

In rural areas like Stephan, South Dakota, where Crow Creek is based, isolation makes recruiting difficult. “The more remote you are, the more challenging it is for your staff members to get to your school and serve your kids,” Coverdale said. Teachers like Mary Joy Ponce-Torres, with 24 years of experience in the Philippines, now teach history at Crow Creek. “I came from a private school... 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,” she said.

The healthcare sector is similarly vulnerable. Bobby Mukkamala, president of the American Medical Association, said, “It’s just going to be terrible for the physician shortage, particularly in rural areas. The people that do graduate from here, who want to practice medicine, obviously have a choice and they’re going to pick Detroit, they’re going to pick Chicago, New York, Los Angeles, San Francisco... This is kind of where everybody goes.”

(With inputs from agencies)