Bill Offsets Federal H-1B Visa Change

Legislation under review by the General Assembly’s Commerce Committee will help offset federal immigration visa changes that threaten to undermine economic growth.

Connecticut employers are competing nationally for the specialized talent that drives innovation and growth.

HB 5244 gives companies a practical tool to recruit and retain high‑skill workers, particularly in industries where the talent shortage is most acute and specialized talent is required. 

The state currently has more than 74,000 open jobs, many in high‑skill fields such as IT, biotech, pharmaceuticals, finance, higher education, and advanced manufacturing

H‑1B visa holders play a critical role in filling these positions, fueling innovation and supporting additional job creation across the economy.

Recent federal changes significantly increased the cost of sponsoring new H‑1B applicants.

Attracting Talent

HB 5244 creates an exemption to the employment promissory note prohibition law for
employers that offer full or partial repayment of the new $100,000 H-1B employee visa application fee, in line with other states.

At a Feb. 24 committee hearing, Department of Economic Community Development commissioner Dan O’Keefe told lawmakers the federal change “effectively bars prospective H-1B visa
applicants from entering the American workforce.”

“Larger employers have expressed concern that Connecticut’s law prohibiting employment promissory notes is preventing employers from placing H-1B visa employees in Connecticut when the employer is advancing part or all of the $100,000 H-1B application fee in return for a three-year employment commitment from the employee,” he said.

“This trend undermines Connecticut’s ability to attract highly skilled talent in critical sectors.”

DECD’s Dan O’Keefe

“Instead, these H-IB visa employees are being placed in states that don’t prohibit promissory notes.

“This trend undermines Connecticut’s ability to attract highly skilled talent in critical sectors such as technology, finance, bioscience, and advanced manufacturing—industries that drive innovation and economic growth.”

O’Keefe added that “Losing these workers to other states not only limits business expansion but also reduces potential tax revenue and economic activity that Connecticut needs to sustain growth.”

‘Talent Drives Growth’

CBIA policy director Jenna Grasso also spoke in favor of the bill, noting that “other economically competitive states allow employers to use standard repayment agreements to manage the financial risk if an employee leaves early.”

“Connecticut’s current statute restricts these agreements, making the state a more expensive and higher‑risk place to hire global talent,” she said.

“This proposal helps Connecticut compete.”

CBIA’s Jenna Grasso

“When employers can’t manage those costs, they are more likely to place high‑skill roles in states with more flexible policies.

“Talent drives growth, and this proposal helps Connecticut compete for it.”

Strengthening the state’s talent pipeline is essential to supporting the industries driving Connecticut’s economy forward.

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For more information, contact CBIA’s Jenna Grasso (860.244.1169).