As President Trump embarks on his second term, leaders in the global energy sector are examining how potential shifts in immigration policy might impact their workforce and operations.
As changes to visa programs, border regulations, and cross-border workforce dynamics take shape, energy companies reliant on a global workforce with active immigrant populations in the US must proactively assess risk exposure and adapt strategies to mitigate potential disruptions.
With the support of a Republican-controlled Congress and executive power at its height in the United States, President Trump is well-positioned to push forward substantial immigration policy goals in the early days of his administration.
During his first term, initiatives such as the “buy American and hire American” Executive Order introduced notable, numerous, and swift restrictions on immigration.
His campaign promised to swiftly roll out similarly nationalistic restrictions on employment-based visas and travel bans through a series of executive orders.
Companies should prepare for US immigration travel bans being reinstated immediately following the inauguration, potentially restricting entry for nationals of countries deemed high-risk.
To avoid employees being stranded outside the US, businesses must act swiftly, ensuring they have detailed data on their international workforce, including citizenships and visa statuses.
Some organisations are already advising against international travel for employees from previously banned countries during the first quarter of 2025.
The second Trump administration is also expected to reintroduce “extreme vetting” procedures for employment-based visa applications in categories like H-1B or L-1, which means a likely return to extended background checks and longer processing times.
As seen during the first Trump administration, energy companies sponsoring US worker visas should expect longer appointment wait times, delays in visa issuance, rates of 221g administrative processing, and a higher likelihood of visa denials.
For energy companies sending international assignees to the US with accompanying dependents, spousal employment and dependent status are expected to face further challenges.
Trump has also publicly committed to ending birthright citizenship. Potential assignees with accompanying families will benefit from a discussion regarding this uncertainty before accepting assignments to the US.
Contingency Planning
With many unknowns on the horizon, it is imperative that companies take necessary steps to prepare for the changes under Trump’s presidency.
With challenge, comes opportunity, and below are insights into how energy companies can protect impacted staff, consider alternative visa routes internationally, as well as get ready for enhanced compliance considerations.
Concept of ‘parking’ staff in ‘immigration-friendly’ countries outside of the US:
- Get ahead in assessing potential ‘at risk’ nationalities and identify countries where they may be able to be ‘parked’ whilst formalizing a longer-term plan. Countries that have presented strategic, quick and effective options previously include the UK, Canada and Mexico.
- For companies with international operations, parking critical impacted staff provides them with the ability to maintain global operations without excessive disruption.
- It is important to note that not all locations in which companies operate or may wish to operate, will present viable immigration options. Challenges could include requirements such as needing existing entities/operations in place, pre-requisites for a ‘sponsor licence’, prolonged processing times, labour market testing, language requirements, medical testing, minimum salary requirements etc. An experienced immigration professional can help guide companies through specific analysis and assessment to create customized options based employee populations and business needs.
Budget Planning for early 2025:
- While the full impact of the Trump administration policies is not known yet, businesses should consider potential increased costs for compliance and workforce mobility in 2025, such as unforeseen legal consults, advisory and compliance assessments, in addition to regular, ongoing visa application costs.
- With increased costs, companies should also prepare for longer visa and work permit lead times as a result of US outbound applications, which will likely impact appointment availability for immigration services.
Companies, and their clients, must be proactive about compliance, explore alternative staffing options, and consider diversifying operations outside of the US.
While these adjustments may involve unforeseen short-term investment, they offer a way to mitigate risk and ensure continued access to the talent required, as well as quick deployment in the energy sector.
Kelly Hardman and Elizabeth Cleveland Wakefield work with Fragomen