H-1B Visa Program Changes Undermine Attempt to Strengthen US Immigration Policy

The Trump administration's overhaul of the H-1B visa program, aimed at benefiting American workers, has instead been met with skepticism by experts, who argue that the new rules will merely create loopholes, favoring large corporations over smaller businesses and start-ups. The proposed changes include a $100,000 fee for new visas and a complex weighting system to favor higher-paid jobs. However, loopholes appear likely to allow outsourcing companies to adapt, while smaller businesses and research organizations will be negatively impacted. Experts point out that the solutions implemented may not address the root problem of abuse in the program and could lead to further complications.

Key Takeaways:

• The H-1B visa program's annual limit remains at 85,000, with employers not subject to the cap often expanding the total by at least 50 percent.
• The visa can be extended for up to six years, or longer if the worker has a pending green card application.
• Since the early 2000s, the number of H-1B visa holders has far outstripped the cap, with the government allocating visas randomly.
• Outsourcing companies have learned to flood the system with applications for relatively low-paid positions.
• The Trump administration's proposed $100,000 fee for new visas is unlikely to accomplish the goal of reserving visas for the most valuable workers.
• The complex weighting system to favor higher-paid jobs has been criticized as ineffective, with loopholes likely to allow outsourcing companies to adapt.
• Smaller businesses, start-ups, and research organizations may be negatively impacted by the new rules, which could lead to a high barrier for these groups to access the program.
• Experts suggest that alternative solutions, such as ranking applications by compensation or devising a points system, may be more effective in maximizing the program's value.

Statistics:

• There were around 583,420 H-1B visa holders in the United States in 2019, the last year the Department of Homeland Security provided data.
• The H-1B visa program's annual limit is 85,000, with employers not subject to the cap often expanding the total by at least 50 percent.
• The median annual compensation of H-1B holders is $120,000, with one approach to reform suggesting cutting out everyone below that level.

Sources:

• John Lettieri, president of the Economic Innovation Group.
• Jennie Murray, president of the National Immigration Forum.
• Daniel Costa, director of immigration law and policy research at the Economic Policy Institute.
• Cecilia Esterline, a senior immigration policy analyst at the Niskanen Center.