I’m not sure if this is a good idea or not but at least it is an idea based on exerting market pressure instead of terror and fear. I don’t have nearly as much of a problem with this as masked agents rounding innocent people off of the streets. The biggest flaw seems to be the very likely scenario of it being used to give preferential treatment based on political views or straight up bribery
Musk will get a waiver.
Might make them hire more US-ians. Might make them, particularly if a startup, up and leave the US. There's been a hell of a lot of verbiage about the quality of H1b candidates vs. natives, and that can tug either way.