Why in news?

Recently, US Commerce Secretary Howard Lutnick labelled the H-1B visa program a “scam,” arguing it allows foreign workers to take jobs that should go to Americans. His remarks align with the Trump administration’s stance who oppose the program for allegedly undercutting domestic workers.

However, the H-1B continues to have strong supporters, including Elon Musk and Vivek Ramaswamy, who highlight its role in bringing global talent to the US.

The program remains particularly significant for Indians, who accounted for over 72% of approved H-1B petitions in 2023.

What’s in Today’s Article?

• Overview of the H-1B Visa Program
• Immigration Politics and Criticism of H-1B Visas in the US
• Indians as the Largest Beneficiaries of H-1B
• Defence of the Program
• Trump’s Proposed Overhaul of H-1B

Overview of the H-1B Visa Program

• The H-1B is a temporary, non-immigrant visa that enables US employers to hire foreign workers in specialized fields like technology, engineering, and finance.
• Launched in 1990, it allows US employers to hire skilled foreign professionals in jobs requiring at least a bachelor’s degree.
• It was designed to help businesses access skills unavailable in the domestic workforce by permitting temporary employment of qualified immigrants.
• The visa can be granted for up to six years, after which holders must either leave the US for at least 12 months or obtain permanent residency (Green Card).
• H-1B Visa Caps and Exemptions
  • Currently, there is an annual cap of 65,000 visas, with an additional 20,000 for individuals holding advanced degrees from US universities.
  • However, not all petitions fall under this cap — exemptions apply for continuing employment, higher education institutions, and nonprofit or government research organisations. As a result, approvals far exceed the cap.
  • In FY 2023, the US Citizenship and Immigration Services approved 118,948 initial employment petitions and 267,370 for continuing employment, totalling 3,86,318.

Immigration Politics and Criticism of H-1B Visas in the US

• Immigration remains one of the most divisive issues in US politics, with concern over it rising sharply in recent years.
• Trump’s campaign rhetoric has often targeted immigration, blaming it for job losses, wage stagnation, inflation, and economic distress faced by the working class.
• While earlier criticism centred on low-skilled migrants, the H-1B visa program has now come under fire for allegedly displacing American workers from high-paying jobs.
• This narrative, often intertwined with racial undertones, frames immigration as a threat to American livelihoods and fuels political attacks on skilled migration programs like H-1B.

Indians as the Largest Beneficiaries of H-1B

• Since 2015, Indians have consistently accounted for over 70% of all H-1B visa approvals, far outnumbering Chinese applicants, who remain around 12–13%.
• This dominance has made Indian professionals a focal point of criticism from nativist Republicans, who argue that the program allows Indians to take American jobs at lower wages.
• Criticism of Wage Disparities
  • Opponents claim that US tech companies misuse the H-1B program to fill low-to-mid-level positions at salaries below what Americans would demand.
  • Supporting this narrative, data show that nearly 70% of Indian H-1B approvals in FY 2023 were for salaries under $100,000, compared to the US median IT salary of $104,420.
    • Only 5% were for salaries above $150,000.

Defence of the Program

• Despite criticism, industry leaders emphasize that H-1B visas remain essential for addressing the US skills gap.
• They argue that wages are market-driven, and global competition for STEM talent is fierce.
• With China (3.57 million) and India (2.55 million) producing far more STEM graduates than the US (820,000), Indian and Chinese professionals continue to dominate the high-skilled workforce.

Trump’s Proposed Overhaul of H-1B

• Although details remain unclear, Trump and his allies have hinted at a major restructuring of the H-1B visa system.
• A 2021 rule proposed under his administration offers insights into the possible direction of reforms.
• Salary-Based Selection Rule
  • The 2021 proposal sought to prioritize H-1B petitions based on salary levels under the Occupational Employment Statistics (OES).
  • Higher-paid applicants (Level 3 and 4) would be favored over lower-paid ones (Level 1 and 2).
  • If implemented, such a change would heavily disadvantage early-career professionals, particularly international students who typically begin at Level 1 or 2 wage bands.
  • This aligns with Trump’s narrative of prioritizing “higher-value” workers while curbing low-wage immigration.
• The “Golden Card” Project
  • In parallel, Trump has floated the idea of a “Golden Card,” offering residency and citizenship to wealthy investors contributing $1 million to businesses or $800,000 to rural or distressed areas.
  • The initiative has reportedly attracted 250,000 applicants, potentially generating up to $1.25 trillion in investments.