With President Trump’s One Big Beautiful Bill (OBBB) now law, HR departments nationwide are urgently figuring out how this extensive legislation will impact their operations.
The upcoming changes are both immediate and wide-ranging, affecting aspects like immigration compliance, workplace culture, and AI governance.
**Immigration Crackdown**
The most immediate effect for HR managers is from the bill’s major expansion of immigration enforcement, which the OBBB Act is set to “supercharge,” according to Amanda Czepiel, an HR legal expert at consultancy Brightmine. ICE funding is set to increase from $10 billion a year to over $100 billion by 2029, with $30 billion specifically designated for hiring thousands of new agents.
This calls for a reality check for HR departments. “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 mandates E-Verify nationwide, posing immediate compliance challenges for companies in states that didn’t require it before.
The solution requires a comprehensive overhaul of onboarding processes. Companies must now implement real-time work authorization verification before an employee starts, conduct regular Form I-9 self-audits to identify errors before official inspections, and extensively train staff on proper documentation procedures. Critically, organizations need to designate and train authorized representatives to interact with ICE agents during worksite visits.
“HR teams that act early will be far better prepared to navigate what is coming and what might come,” Czepiel says. Waiting for enforcement to ramp up could prove costly beyond compliance fines.
**Politics x the Workplace**
The ripple effects of major policy changes don’t stop at legal compliance. They fundamentally alter workplace dynamics. Brightmine research shows about half of U.S. workers surveyed say recent policy changes affect their daily work, and over a third are considering or planning to leave their jobs this year due to shifts in workplace policy.
Whether it’s political discussions in the breakroom or anxiety over job security due to shifting regulations, HR teams cannot afford to be reactive to workplace tensions tied to policy changes, Czepiel explains. Waiting for issues to surface risks damaging trust, lowering employee morale, and losing top talent.
The challenge is particularly acute for employees from immigrant backgrounds or those working under visas, TPS, DACA, or asylum status, who may feel especially vulnerable. “In these moments, silence can fuel fear and uncertainty,” Czepiel says. “It’s important that HR leads with transparency.”
That means having frank conversations about how policy changes might affect hiring strategies, sponsorship opportunities, and career advancement paths throughout the organization. It also means advocating for immigration-related benefits like visa support and legal assistance while ensuring all employees have equitable access to advancement opportunities regardless of their status.
Effective response requires proactive measurement. Pulse surveys focusing on psychological safety and sense of belonging can help HR teams identify brewing issues before they explode into larger problems. As Czepiel puts it, “DEI isn’t just about big initiatives—it’s about small, everyday leadership actions that foster a sense of belonging for all employees.”
**The AI Regulation Maze**
While immigration enforcement has dominated headlines, the OBBB’s approach to artificial intelligence creates a different challenge for HR departments. With federal AI provisions removed from the final bill, states are moving to fill the regulatory vacuum, creating a patchwork of requirements that multistate employers must navigate.
Czepiel recommends HR teams adopt a “highest standard” approach—building policies based on the most stringent current state and local requirements and scaling them across operations. Such a strategy avoids a constant scramble to catch up as new regulations emerge.
The timeline is tighter than many realize. California has new requirements taking effect in October, while Illinois, Colorado, and Texas follow with their own laws in early 2026. HR teams should expect more jurisdictions to enact workplace AI laws, causing a domino effect and raising compliance challenges, especially for those operating in multiple states, Czepiel warns.
Practical steps include conducting immediate AI audits, establishing codes of conduct that evolve with changing regulations, and regularly screening for hiring bias and compliance gaps.
**Opportunity in Challenge**
Interestingly, the OBBB’s charitable contribution requirements create opportunities for strategic HR leaders. Erin Pierson from consultancy Cause Strategy Partners notes that most companies do not yet meet the one percent threshold for pretax profit charitable contributions necessary for tax breaks.
Rather than being another compliance burden, savvy people managers can use these requirements to strengthen community impact and employee development. “Taking a broader look at what constitutes a charitable contribution helps companies reach and extend beyond that one percent threshold while maintaining valuable, purpose-driven employee experiences,” Pierson says.
The magic happens when HR and Corporate Social Responsibility (CSR) teams merge. Leadership development programs that include nonprofit board service or skills-based volunteering can count toward charitable contributions while building employee capabilities. “Skills-based volunteering—and especially nonprofit board service—are powerhouse opportunities to expose employees to new skills and insights, exercise their corporate skills in vastly different contexts, and build confidence