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Emigration and immigration

H-1B Visa Program Under Fire: Lutnick's Scathing Criticism Sparks Controversy

Strategic Insights

— 2 min read

As the H-1B visa program continues to be a highly sought-after pathway for Indian migrants to enter the US, United States Commerce Secretary Howard Lutnick has called it a "scam" and urged businesses to "hire American." Lutnick's comments echo the views of several influential figures in the Donald Trump administration, including White House deputy chief of staff Stephen Miller, who is said to be the architect of Trump's immigration policies. The program has been a target of criticism from both the American Left and Right, with proponents arguing that it allows US firms to gain a competitive edge in cutting-edge tech research and development.

Key Takeaways:

  • The H-1B visa program allows American employers to hire immigrant workers in occupations that require "a high level of skill" and "at least a bachelor's degree", according to the US Department of Labor.
  • More than 70% of all approved H-1B petitions since 2015 have been from Indians, according to United States Citizenship and Immigration Services (USCIS) data.
  • The Chinese account for 12-13% of successful H-1B petitions, making them a distant second, according to USCIS data.
  • 25% of successful H-1B petitions were for salaries between $100,000 and $150,000 per annum, and only 5% were for more than $150,000, according to an analysis by The Indian Express.
  • The vast majority of Indians going to the US were thus earning less than $100,000 per annum -- below the median salary for IT professionals in the US ($105,990 as of May 2023, according to the US Bureau of Labor Statistics).
  • An average American earns $75,000 a year, while the average green card recipient earns $66,000, according to Lutnick's interview.
  • Lutnick characterized the H-1B program as "picking the bottom core," suggesting that it prioritizes cheaper labor over American workers.

Statistics:

  • 70% of all approved H-1B petitions since 2015 have been from Indians.
  • 12-13% of successful H-1B petitions have been from Chinese, according to USCIS data.
  • 25% of successful H-1B petitions were for salaries between $100,000 and $150,000 per annum.
  • 5% of successful H-1B petitions were for more than $150,000.
  • The median salary for IT professionals in the US was $105,990 as of May 2023, according to the US Bureau of Labor Statistics.
  • An average American earns $75,000 a year.
  • The average green card recipient earns $66,000, according to Lutnick's interview.

Sources:

  • United States Commerce Secretary Howard Lutnick's interview with Fox News.
  • Forbes article on the Trump administration's plans to "end or significantly change the annual H-1B visa lottery".
  • United States Citizenship and Immigration Services (USCIS) data on H-1B petitions.
  • The Indian Express article analyzing salaries offered to approved H-1B petitions.
  • US Department of Labor on H-1B visa program requirements.
  • US Bureau of Labor Statistics on median salary for IT professionals in the US.
  • Britta Glennon's working paper "How do restrictions on high-skilled immigration affect offshoring? Evidence from the H-1B program" (2004).
  • Britta Glennon's paper "Skilled Immigrants, Firms, and the Global Geography of Innovation" (2024).
  • Elon Musk's post on X in December 2023.
  • Senator Bernie Sanders' response to Elon Musk's post on X.
  • Steve Bannon's interview to the Italian newspaper Corriere della Sera in January.

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