The H-1B visa program has long been a topic of debate in the United States, particularly concerning its impact on American workers and the economy. This non-immigrant visa allows U.S. employers to temporarily employ foreign workers in specialty occupations that generally require a bachelor's degree or higher, primarily in fields like technology, engineering, healthcare, and finance.

Indians as Primary Beneficiaries

Since 2015, Indian professionals have consistently received over 70% of all approved H-1B visas, significantly exceeding the number of visas granted to Chinese applicants, who typically account for around 12-13%. This dominance has made Indian workers a focal point in discussions about the program's merits and drawbacks. In fiscal year 2023, over 72% of approved H-1B petitions were for Indian nationals. Between October 2022 and September 2023, Indians received 72% of the nearly 400,000 visas issued under the H-1B program. As of October 2018, 309,986 Indians were in the U.S. on H-1B visas.

The Argument for H-1B Visas: Benefits to U.S. Firms

Despite criticisms, many government officials and business leaders argue that the H-1B visa program significantly benefits U.S. companies. A senior government official stated that the visa helps American companies find skilled workers worldwide and that it may not be easy to replace these workers with equally skilled Americans. The H-1B visa helps U.S. firms address skill shortages and fill critical roles, especially in the technology and healthcare sectors. By allowing companies to hire top-tier global talent, the program ensures continued innovation and growth. Without access to these skilled workers, companies may experience slowdowns in research, development, and product launches, which could negatively affect economic growth.

Specifically, between fiscal years 2010 and 2019, eight U.S. companies involved in developing a COVID-19 vaccine received approvals for 3,310 biochemists, biophysicists, chemists, and other scientists through the H-1B program. Moreover, H-1B workers do not earn low wages or depress the wages of other workers. In 2021, the median wage for an H-1B worker was $108,000, compared to $45,760 for all U.S. workers. From 2003 to 2021, the median wage of H-1B workers increased by 52%, while the median wage of all U.S. workers increased by 39%.

Criticisms and Proposed Changes

The H-1B visa program has faced considerable criticism. U.S. Commerce Secretary Howard Lutnick has called the program a "scam" that allows foreign workers to fill American job opportunities and depress wages. Lutnick and others advocate for prioritizing American workers. Some critics argue that the program leads to American workers being replaced by lower-paid foreign workers, especially in the tech sector.

The Trump administration has been considering significant changes to the H-1B visa and green card systems, potentially shifting towards wage-based immigration and merit-driven selection. One proposed change involves replacing the lottery system with a system that prioritizes higher-earning applicants. The U.S. Office of Information and Regulatory Affairs has approved a draft rule for this new system. Some worry that this could negatively impact American companies and lead them to hire remotely from India or outsource more jobs abroad, harming U.S. innovation.