Businesses, volunteers concerned about possible J-1 visa cuts

International students working in the Cape Region are a staple of summer, but a presidential order could put a halt to that tradition.

A recent report in the Wall Street Journal says the Trump administration is considering reducing the J-1 visa program as part of the Buy American and Hire American executive order, issued in April. No decisions have been made, but the Journal reported that a White House-led working group is reviewing the J-1 program, commonly used by students who work in the Cape Region.

The published report has attracted the attention of the local International Student Outreach Program, a group of Cape Region volunteers that provides meals, orientations and other services to help students have a better experience.

"When I think about the possibility of the program ending, it's hard to imagine how our local businesses would function without the J-1 students," said Maryanne Kauffman, chairwoman of the program. "Where could they possibly find almost 900 individuals willing to work for minimum wage or slightly higher, in a resort community where housing is hard to find, is often undesirable and yet is expensive?"

She said, "If they were to hire American university students, most would have returned to school mid-August, which would leave business owners short staffed during the busy last two weeks of summer. There are some J-1 students who will be working in our area until October."

Funland, an iconic Rehoboth business, employs around 30 international students every summer. Personnel Manager Christopher Darr said the park's reaction to the possibility of cuts to the J-1 program is disbelief.

"A major reduction to the J-1 visa program would not only hurt our ability to staff the amusement park on a daily basis in the early summer, but could cripple our staffing levels in August and September," he said. "Starting in early August, many of our American employees head back to college, high school and fall activities, making it very hard to keep staffing levels where we need them. Without J-1 visa employees, we would struggle to keep everything in the park open in mid-to-late August, affecting our customer experience and our bottom line."

As for the criticism that the J-1 program serves as a form of cheap labor for businesses, Darr said, "We as a business do not hire J-1 visa students due to the idea that it is 'cheap labor.' It is correct that J-1 visa employees are not subject to FICA withholdings, but that has no bearing on our decision to hire them. It actually takes Funland significantly more time and effort to get a J-1 visa student hired, housed and trained than an American employee, but we know the important role they play in our summer season."

Darr said Funland has reached out to U.S. senators Tom Carper and Chris Coons to voice their concerns.

"This is a very important topic for our business and the resort area as a whole," he said.

The number of international students in the Rehoboth area has grown over the last three years. Kauffman said in 2016, 721 students were in Rehoboth, a 27 percent increase from 2015 when there were 563 students in Rehoboth. Statistics from the U.S. State Department, which administers the program, show 894 international student are in the Rehoboth area in 2017. Kauffman said sponsor organizations, which place students in a particular location, help them find employment and serve as their contact when in the United States, have asked organizations like ISOP to contact their elected officials and the U.S. State Department to explain the impact a cut on the J-1 program would have on local economies.

Kauffman said not only businesses would suffer if the program were to be cut, but the resort community as a whole.

"If we don't have people to clean hotel rooms, sell clothing at the outlets, serve food in restaurants, stock grocery shelves, and yes, sell french fries and ice cream, who is going to visit the resort?"

In a statement, officials from the State Department referred questions on policy changes to the White House.

"We continue to implement J-1 visa programs at the same levels we have for the past few years. We are aware of the support that American businesses have shown for the program and its value to their local communities," a State Department official said.

In a statement, Carper said, "Our tourism industry traditionally relies on student workers coming to Delaware on J-1 visas to fill workforce gaps while providing them with the remarkable experience of living abroad. I have heard from several constituents who are as concerned as I am about a potential shortage of J-1 visas. It wouldn't benefit Delaware - it would hurt our seasonal workforce and Delaware's overall economy."

The Alliance for International Exchange, a lobbying organization on behalf of international exchange groups, released a statement saying, "If eliminated, the U.S. economy will take a substantial hit. It is estimated that J-1 visa holders in the Summer Work Travel program contribute more than $500 million to the economy each year through program fees, travel, housing, and entertainment. The notion that the J1 programs undermine the president's 'Buy American and Hire American' Executive Order, however, is misguided and uninformed."

Ilir Zherka, the alliance's executive director, said, "It is unclear why, at a time of economic and diplomatic uncertainty, a small group of advisors in the White House are conspiring to eliminate programs that have long-term benefits to both our position in the world and our economy at home. These programs have strong bipartisan support. Any change would be a setback to U.S. national security and diplomacy efforts - not to mention deal a devastating blow to seasonal communities that depend upon increased temporary employment to prosper."

Kauffman said it is also important not to lose sight of the purpose of the program, which is to offer foreign university students an opportunity to experience American culture and travel the country. "This program is considered a public diplomacy tool, with the hope that students will return to their home countries with good memories and a positive view of the U.S. Personally, I think we need that more than anything right now," she said.