Home
⧖ Workforce Augmentation · Employer Parity Surcharge funding

Where the Employer Parity Surcharge revenue goes

The surcharge — withheld from the worker's wage at payroll during the integration years, while the employer pays the same as for a domestic hire — is formula-scored, with illustrative landing points of ~12% shortage-skilled / ~40% credentialed trades / ~90% seasonal manual (indicative, not statutory). It pools nationally; each host community draws its share by how many immigrants it hosts and how much help it needs — struggling communities get more per immigrant, high-capacity cities less — and spends it locally on the services newcomers use, like school seats for immigrant children, primary-care expansion, and evening ESL at the library. The exact apportionment formula is still to be determined. Communities hosting refugees and asylum seekers qualify even before residents are employed. The per-worker rate declines to ~10% by Year 9 as the immigrant integrates and pays standard payroll tax and income tax.

1.75M/yr
Target intake at maturity
Blueprint Ch 21
~12/40/90%
Illustrative landing points
Indicative, not statutory; → ~10% per worker by Year 9
Hosting communities
Where the surcharge goes
Share of pool by immigrant count & local need
Workforce AugmentationOptimizationTalent CaptureImmigrationCommunity & RefugeesCOMPASS
Section 1

The COMPASS-weighted apportionment

The surcharge is targeted — not ring-fenced — to the communities that host: struggling communities receive more than healthy ones. It does not split along a fixed federal formula. The NSB and Treasury apportion the pool against the COMPASS shortage-indicator suite, so the weighting travels with measured local need rather than with a political negotiation. The exact formula and guidance are still to be determined. Three framing principles bound the rule-making:

Where the weight goesWhat the funds do
Heavier — low-capacity / hollowed-out tractsPlaces with the largest measured shortages on the COMPASS suite (healthcare access, broadband, housing supply, civic capacity, primary care, mental health) receive the largest per-immigrant allocation. The surcharge becomes a capacity-building stream for the places that most need it.
Lighter — high-capacity established citiesCities with deep immigrant-receiving infrastructure already in place — the established gateways — receive a smaller per-immigrant allocation, on the principle that marginal capacity-building dollars travel further where the capacity is missing.
Refugee + asylum hostingCommunities hosting refugees or asylum seekers qualify even before the hosted residents are employed. Refugee and asylum-seeker healthcare is covered by Distributed Healthcare (the universal floor), not by a separate surcharge slice.

Specific apportionment weights are set by NSB / Treasury rule-making against the COMPASS indicators and are not published as fixed percentages.

Section 2

Phase-in and steady-state intake

YearAnnual intake
Year 11,000,000
Year 21,250,000
Year 31,500,000
Year 4+1,750,000 (steady state)

The ramp is administrative — bringing the new intake and scoring system to capacity, gated on the COMPASS absorption indicators — not a new quota concept; federal intake control already exists.

The Genius-Track visa system (PhD Completion, GTV, Postdoctoral, Alliance-Incentive Fast-Track) is separate and additive — combined steady-state flow ~46,000–62,000/year, independent of the 1.75M surcharge-governed volume.

Section 3

Remittances

Remittances are private household flows from worker take-home pay. The surcharge has already priced the labor-market externality at source; the Accord neither taxes nor restricts remittances.