The OBBB implements significant changes in immigration enforcement that will have immediate effects on HR departments. Funding for ICE will increase from $10 billion to over $100 billion, accelerating I-9 audits and worksite raids, especially in hospitality and manufacturing sectors. Companies must now switch to real-time work authorization verification and conduct I-9 self-audits. There is a critical need for training staff on documentation procedures and designating representatives for ICE interactions. Proactive HR teams will fare better against the new compliance landscape and avoid costly penalties.
The most immediate impact HR managers will feel comes from the bill's dramatic expansion of immigration enforcement, which the OBBB Act is set to "supercharge." As has been widely reported, ICE funding will balloon from an annual budget of $10 billion to more than $100 billion through 2029, with $30 billion specifically earmarked to hire thousands of new agents.
"This will drive a rise in I-9 audits and worksite raids, particularly in industries like hospitality and manufacturing," Czepiel explains. The new law also makes E-Verify mandatory nationwide, creating immediate compliance challenges for companies in states that previously did not require it.
The solution requires a comprehensive overhaul of onboarding processes. Companies must now implement real-time work authorization verification before an employee's first day, conduct regular Form I-9 self-audits to catch errors before official inspections, and train staff extensively on proper documentation procedures.
HR teams that act early will be far better prepared to navigate what is coming and what might come. The alternative - waiting for enforcement to ramp up - could prove costly in ways that extend far beyond compliance fines.
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