Explained: What does Trump's relaxation of visa norms mean for tech companies?

While fresh visas not being issued, given the already prevalent travel restrictions, is not a big hit to IT companies (which are the biggest takers of H1B visas); the big worry was renewals getting impacted. For instance, if an employee was working on an ongoing contract and his visa expired in March, he would have travelled back to Mumbai around February to renew the visa.

Now, of course, renewals won't have been possible due to the COVID 19 pandemic and the subsequent lockdown restrictions. The restriction announced in June meant that even when the travel ban lifts, he would not be able to travel back to the US. The impact would then fall on the ongoing contract as, despite working from home, the employee would not be able to complete its formalities. This would mean that the company employing him would have to deploy another employee for the same contractor who was onshore (in the US at the time).

The relaxation announced now allows this employee to renew his visa (if he is on H1B & L visa) and travel back along with dependants to the US.

The proclamations issued earlier by the Trump administration allowed entry of those workers that were critical to the revival of the US economy. The 'guidance' issued today gives clarity on what that means. Travel for technical specialists, senior-level managers and other workers who hold H1B visas and are critical to economic recovery will be allowed. This will include workers employed with sectors like defence, government services, public procurement, transportation and even banking.

IT Industry body Nasscom welcomed the move but remained cautious.

"NASSCOM welcomes this move and believes it will help U.S. businesses access talent critical to the economic recovery phase in the post-COVID world. However, we remain “cautiously optimistic” – as caveats in the DoS guidance about seniority, unique and significant contributions, and/or other factors that go along with the exceptions still allow a lot of leeway in the interpretation of the new guidance. The impact can only be gauged in the course of time. That said, we believe this is a step in the right direction and encourage the implementing agencies to ensure U.S. businesses’ access to critical talent is not hampered;" it said in a statement.

"NASSCOM has consistently raised the importance of visa holders working within the tech sector, particularly those who would be delivering services designated essential per the DHS CISA “Guidance on the Essential Critical Infrastructure Workforce”, particularly those who would be returning to the U.S. in the same position with the same employer and visa classification;" it added.