H1B Visa Program

• Context (IE | ET): The H1B visa program allows U.S. employers to hire skilled foreign professionals and has become a point of contention within U.S. politics.

About H1B Visa Program

• The H1B visa program allows U.S. employers to hire skilled foreign nationals for jobs requiring specialised knowledge and a minimum bachelor’s degree.
• Launched in 1990, it aims to help U.S. employers fill skill gaps by hiring foreign workers temporarily.
• H1B visas are typically capped each year and allocated through a lottery system managed by the U.S. Citizenship and Immigration Services (USCIS).
• Exemptions: Certain H-1B workers, such as those employed in higher education institutions, non-profits, or government research organisations, are exempt from the annual visa cap.
• Validity and Extensions: The visa is initially valid for three years, with a one-time extension option for an additional three years, making six years the general maximum duration. A cap of 65,000 new visas is set annually, with an additional 20,000 visas for individuals with advanced degrees from U.S. institutions.
• Lifetime Limit: There is no limit on the total number of H-1B visas an individual can hold over their lifetime, as long as each visa term follows standard application and approval procedures.
• Job change: H-1B holders can change employers but must reapply for a new visa. If a transfer application is denied, the individual could become “out of status,” potentially facing a re-entry bar of three to ten years unless the previous employer rehires them.
• Green Card: H-1B visa holders can apply for a Green Card (Lawful Permanent Residency) for themselves and eligible family members, allowing a path to longer-term residency.

Indians and the H1B Program

• Indians are the largest beneficiaries, making up over 70% of H-1B petitions since 2015.
• This dominance has triggered a backlash from certain right-wing factions, who argue that the program is misused by tech companies to employ foreign workers at lower wages than U.S. nationals.
• Many H-1B visa holders work in tech, earning a significant portion under $100,000 annually, which is lower than the median salary for U.S. IT professionals.

Arguments Opposing H1B Visa Program

• Exploitation of Workers: Critics argue that some companies exploit the program to hire cheaper foreign labour, displacing U.S. workers.
• Wage Suppression: There is concern that the program drives down wages, as companies prefer to hire H-1B workers who accept lower pay.
• Visa Backlog: The lengthy visa processing and backlog create job insecurity for many applicants, especially those seeking permanent residency (Green Card).
• Dependence on Employers: H-1B holders’ dependence on employers for visa renewal limits their job mobility, leading to exploitation.

Arguments in Favour of H1B Visa Program

• Filling Skill Gaps: Particularly in STEM fields where U.S. universities cannot produce enough graduates.
• Global Competition: U.S. faces stiff competition from China & India, which have large pools of STEM graduates, underscoring the need for skilled foreign labour to maintain technological leadership.
• Economic Growth: H-1B visa holders contribute significantly to the U.S. economy, especially in high-demand sectors like tech, healthcare and engineering.
• Strategic Importance of Skilled Immigration: Appointment of Sriram Krishnan, an Indian-American tech leader, as Trump’s AI adviser reinforces the message that skilled foreign workers are crucial for U.S. innovation and economic competitiveness.

Way Forward

• Reform Suggestions: Increasing the minimum salary for H-1B visa holders and making the program more expensive to encourage U.S. hiring.
• Addressing Wage Issues: Raising the minimum salary threshold for H-1B workers would ensure better pay and reduce concerns about wage suppression.
• Streamlining the Process: Reducing visa processing times and resolving the backlog would provide more security and stability to H-1B holders.
• Revisiting Cap and Lottery System: Proposals to adjust the cap and reconsider the lottery-based visa allocation could make the system fairer and more efficient.