This does nothing to stop the rise of GCCs.

In tech industry, we already began slowing down H1B hiring after COVID, and remote work only exacerbated that trend (I can't justify spending $150k plus an additional 25-35% in withholdings, medical, and benefits when I can hire 2-3 people with a similar outlay in Praha or Bangalore or Tel Aviv).

At least with H1B hiring, there was some incentive for industries like cybersecurity to keep some engineering headcount in the US. Now I have no reason not to completely offshore to Tel Aviv or Praha becuase the talent is there and not in the US.

This H1B change does nothing to solve the pipeline crisis nor does it solve offshoring (though even with a services tax, I'd be hard pressed to find the same ecosystem in the US like I can in Israel or Poland or even India for significant swaths of cybersecurity).

Finally, charging $100k per year per H1B employee means I can now justify a $1-10M investment in building a GCC abroad in CEE or India and availing tax benefits, subsidies, and tax holidays.

All this did is now incentivize me to push my portfolio companies to move hiring almost entirely abroad and choose a couple of high level PMs and EMs on H1Bs who would be open to becoming a Director of PM or Director of Engineering at a GCC abroad.

On top of that, the cream of the crop you want with a brain drain like academics in STEM fields, nurses, and doctors are sponsored on H1Bs.

America has a pipeline and skills problem in a lot of STEM fields and subfields, and coding bootcamp grads aren't going to cut it.

Cutting down on processing abuse by consultancies is something everyone can get behind, but this is literally the stupidest way to approach that problem.