H-1B Visas | July 2025
From scrutiny to semantics: The policy shifts reshaping H‑1B access to Silicon Valley
By Rachel Massaro
As the nation’s tech capital, Silicon Valley is both the largest user and most affected region when it comes to changes in H-1B visas — the category designated for immigrants in specialty occupations. In the decade preceding the pandemic (2010-2019), the region welcomed over 105,000 new H-1B visa holders, and an average of 18,000 renewals were approved each year. Given Silicon Valley’s outsized share of foreign-born workers and its long-standing reliance on immigrant-driven innovation and growth, how have recent shifts in the political landscape impacted H-1B visa approvals?
Shifting Federal and State Policies Reshape H-1B Landscape
Significant changes in national immigration policy have focused on tightening visa eligibility, increasing scrutiny, and prioritizing higher-skilled, higher-paid workers. The 2017 “Buy American, Hire American” executive order marked a shift toward stricter rules regarding H-1B approvals, especially for roles deemed less specialized. The suspension of H-1B entry during the pandemic temporarily halted the issuance of new visas.
More recently, the Department of Homeland Security's U.S. Citizenship and Immigration Services (USCIS) rules refined the definition of a specialty occupation, increased the lottery registration fee from $10 to $215, and introduced a beneficiary-centric selection process to curb duplicate filings.
The recent reversion to the term “alien” in USCIS policy stands in direct contrast to the Biden administration’s 2021 U.S. Citizenship Act, which explicitly sought to modernize and humanize immigration language by replacing “alien” with “noncitizen” — a deliberate acknowledgment that the United States is, at its core, a “nation of immigrants.” While this language shift does not directly alter Silicon Valley’s H-1B landscape, it signals a broader cultural shift that may influence future sentiment or policy in ways not yet measurable.
Meanwhile, California enacted laws such as SB 54, which limited local cooperation with federal immigration enforcement, and AB 5, which redefined contractor classification — together creating a more protective environment for immigrant workers. Taken alongside national policy shifts, these state and federal changes have shaped both the H-1B visa process and the broader landscape for H-1B workers in California.
Concentrated Demand and Slower Growth in New H-1B Sponsorships
Silicon Valley experienced a sharp increase in H-1B visa approvals following 2020, with numbers significantly above the pre-pandemic average and peaking in 2022.
H-1B visa approvals in Silicon Valley have remained consistently above pre-pandemic levels, peaking in 2022 and holding steady through 2024. This sustained volume comes despite a more restrictive national policy environment, indicating continued demand by the region’s employers for highly skilled international talent.
The share of total H-1B approvals going to the region’s top 10 sponsors has steadily increased — from less than 30% pre-pandemic to nearly 50% in 2024 — indicating growing concentration among a small number of high-volume employers. Meanwhile, the share of approvals going to new applicants, as opposed to continuing ones, declined in the early 2020s but has shown a modest rebound in recent years.
Together, these trends point to a labor market where a few major employers are driving the bulk of H-1B visa activity, and where demand for first-time H-1B talent is just beginning to recover.
Sectoral Trends: Growth in Information, Continued Dominance in Technical Services
While Silicon Valley’s H-1B visa approvals remain concentrated in professional, scientific, and technical services, that sector’s share declined from 55% in the decade prior to the pandemic to 48% in 2020-2024. Over the same period, the Information sector nearly doubled its share, rising from 9% to 16%, indicating growing demand for international workers in software development and data processing roles in addition to engineering and specialized business services.
While the Information sector’s share of H-1B approvals in Silicon Valley grew significantly over the past five fiscal years (compared to pre-pandemic), this growth was largely driven by a small group of high-volume employers. More than three-quarters (77%) of all H-1B approvals in the Information sector since 2020 went to just nine companies. Of those, Meta/Facebook alone accounted for a striking 40%, followed by LinkedIn with 12%, Oracle with 7%, and the remaining 42% collectively awarded to all other employers. This dense concentration highlights that while the sector has expanded its footprint within the H-1B landscape, approvals remain highly centralized among the region’s largest information technology employers.
Smaller increases since pre-pandemic were also observed in finance and insurance roles (up two percentage points), indicating some gradual diversification in the use of H-1B visas. These shifts suggest that although traditional tech and engineering services continue to dominate, a broader mix of industries are tapping into global talent to meet evolving workforce needs in the region.
H-1B Approvals Favor Retention Over Recruitment
Over the past five fiscal years, Silicon Valley’s share of all U.S. H-1B approvals shifted notably toward continuing applicants. The region’s share of approvals for continuing workers increased from approximately 9% (pre-pandemic average) to nearly 16% in 2022, before leveling off at around 13% in 2024. In contrast, the share of approvals for new applicants declined modestly over the same period, from about 12% in 2020 to less than 10% by 2023.
These trends suggest that while overall approval volumes remain strong, the region’s H-1B footprint is increasingly driven by the retention of existing talent rather than new sponsorships, possibly reflecting policy constraints, risk mitigation, or shifting hiring strategies among major employers.
Looking Ahead: Policy, Demand, and the Future of Global Talent in Silicon Valley
As federal policy continues to evolve and economic conditions fluctuate, Silicon Valley’s reliance on highly skilled immigrant labor remains a defining feature of its innovation economy. The region’s persistent demand for H-1B workers — despite greater scrutiny, rising fees, and a narrowing pipeline of new applicants — reflects a structural dependency that shows no signs of fading.
At the same time, the growing concentration of approvals among a handful of large employers raises important questions about access, equity, and the long-term adaptability of the visa system. Whether future reforms lean toward restriction or expansion, the trajectory of H-1B policy will continue to shape who builds, leads, and sustains the region’s globally competitive workforce.
