MarketsFinancial TimesMay 22, 2026· 1 min read
Trump Administration Proposes In-Country Green Card Ban, Impacting US Businesses

The Trump administration plans to require foreign nationals to leave the U.S. to apply for green cards, ending in-country status adjustments. This policy shift is expected to increase administrative burdens and potentially disrupt operations for American businesses reliant on foreign talent.
The Trump administration is reportedly preparing to mandate that foreign nationals seeking permanent residency (green cards) must depart the United States to complete their applications. This proposed policy marks a significant tightening of immigration requirements, moving away from the current system which often permits 'adjustment of status' applications from within the U.S. for individuals on valid visas.
The policy change, if implemented, is expected to have notable economic implications, particularly for American businesses. Companies that employ foreign workers on various visa types, such as H-1B skilled worker visas, could face increased administrative burdens and potential disruptions to their workforce. The requirement for employees to leave the country for an unspecified period to process their green card applications could lead to temporary staffing shortages and impact project continuity. This could be particularly challenging for industries heavily reliant on foreign talent, including technology, healthcare, and specialized research sectors.
Furthermore, the move could deter highly skilled foreign professionals from seeking employment in the U.S. if the path to permanent residency becomes more arduous and unpredictable. This could diminish the U.S.'s competitiveness in attracting global talent, potentially shifting skilled labor towards countries with more streamlined immigration processes. The policy's precise implementation details, including exceptions and processing timelines, will be critical in determining its full economic fallout, but the preliminary reports suggest a substantial increase in complexity and cost for both employers and prospective immigrants.
Analyst's Take
While immediately impacting businesses reliant on foreign talent, this policy could have a delayed but significant effect on innovation capital flows. Venture capital and startup activity, often fueled by immigrant entrepreneurship, may see a longer-term slowdown as the perceived difficulty of establishing roots in the U.S. shifts talent and investment to more welcoming jurisdictions, a trend that may not fully materialize for 12-18 months.