2017 BAHA Order Caused 2.8% Productivity Drop

The 2017 Buy American, Hire American order doubled H-1B petition denials to 17% from 7% and tripled STEM denials to 31%. States reliant on H-1B talent saw a 2.8% decline in value-added output. The policy led to a $218 billion productivity loss in affected regions. The decline in specialized STEM talent reduced total factor productivity despite concurrent tax cuts and deregulation.