The changes ahead are both immediate and far-reaching, touching everything from immigration compliance to workplace culture and AI governance.

Immigration crackdown

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,” according to Amanda Czepiel, HR legal expert at consultancy Brightmine. 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.

For HR departments, it calls for a reality check. “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. Perhaps most critically, organizations need to designate and train authorized representatives who can 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. The alternative — waiting for enforcement to ramp up — could prove costly in ways that extend far beyond compliance fines.

Politics x the workplace

The ripple effects of major policy changes don’t stop at legal compliance. They are fundamentally altering workplace dynamics. Brightmine research reveals that about half of U.S. workers surveyed say recent policy changes are affecting their daily work, while more than one-third of the workforce is considering or planning leaving their jobs this year because of shifts in workplace policy.

“Whether it’s political discussions in the breakroom or anxiety over job security due to shifting regulations, HR teams can’t afford to be reactive when addressing 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 the current environment. “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.

The key insight: 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 kind of 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 that HR teams adopt a “highest standard” approach — i.e., build policies based on the most stringent current state and local requirements that apply to their organization and scale them across operations. Such a strategy heads off 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 of this year, while Illinois, Colorado and Texas follow with their own laws in early 2026. HR teams should expect more jurisdictions to follow suit in passing workplace AI laws, causing a domino effect and raising compliance challenges for employers, especially those operating in multiple states, Czepiel warns.

The practical steps involve conducting immediate AI audits, establishing codes of conduct that can evolve with changing regulations, and implementing regular screening for hiring bias and compliance gaps.

Opportunity in challenge

Interestingly, the OBBB’s charitable contribution requirements create opportunity for strategic HR leaders. Erin Pierson, chief growth officer at consultancy Cause Strategy Partners, points out that most companies do not yet meet the one percent threshold for pretax profit charitable contributions necessary for tax breaks.

Rather than another compliance burden, however, savvy people managers can leverage those requirements to strengthen both community impact and employee development. “Taking a broader look at what constitutes a charitable contribution will not only help companies reach and extend beyond that one percent threshold, but also maintain valuable, purpose-driven employee experiences that drive performance, growth and retention,” Pierson says.

The magic happens when HR and Corporate Social Responsibility (CSR) teams come together. Leadership development programs that incorporate 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 and leadership capacity,” Pierson explains.

Securing resources

All these changes require significant investment in legal oversight, policy updates, staff training, system upgrades and cross-functional coordination, according to the experts. The question becomes: How do HR leaders secure the resources they need?

To build a strong business case, HR leaders should quantify risk, advises Czepiel. “What’s the cost of non-compliance? What’s the potential impact of reduced employee trust or turnover if they don’t respond well to cultural shifts? Framing compliance as both a legal requirement and a company culture strategy will help company leaders across the organization see the value and urgency of resourcing HR appropriately,” she says.

The most effective approach focuses on three priorities: centralizing and digitizing all onboarding documentation to ensure compliance across jurisdictions, establishing comprehensive AI guidelines with regular bias screening, and updating employee handbooks to reflect current legal requirements in every operating state.

The path ahead

The OBBB represents the most significant shift in workplace compliance in years, but it’s not insurmountable, as the experts see it. “Auditing processes, training staff and preparing for what’s to come will help ensure a smoother transition and minimize the risk of costly disruptions or compliance issues down the line,” Czepiel says.

As the experts see it, the organizations poised to thrive in this environment are those that view these changes not just as compliance obligations but as opportunities to strengthen their culture, develop their teams and build a more resilient workplace.