The Trump administration has intensified its scrutiny of the H-1B visa program, which allows U.S. companies to hire foreign workers in specialized fields, by imposing a significant fee increase. This new policy doubles down on that by introducing a $100,000 fee for companies looking to bring in an H-1B visa holder. The administration envisions this as a key tool to combat rampant abuse of the program and prevent the displacement of American workers.
Trump and his administration have railed against the H-1B program. They applaud it for allowing companies to import thousands of foreign guestworkers while simultaneously firing thousands of American workers. On this point, the administration is correct that the program has strayed far from its original purpose of fixing skills gaps. Instead, it has become a vehicle for corporations to attack American workers.
Those new restrictions come at a time when the H-1B program is already capped at 65,000 new visas issued each year. Further, it holds aside another 20,000 visas to foreign grads with advanced degrees from U.S. universities. Instead, the program functions like a national lottery, awarding visas based on luck not geography. H-1B visas are generally issued for an initial period of three years, with an option to renew, or to switch to permanent resident status.
Yet the employer-employee structure built into the H-1B program makes it difficult for startup founders to secure visas directly. Creators sometimes find themselves indentured to employers for decades. Only once they get green cards can they finally go off and start their own businesses.
As the founder of companies such as SpaceX and Tesla, he has publicly supported the H-1B program. Musk himself was an H-1B visa holder working at Meebo, an early-day instant messaging platform. He argues that the program is more important than ever to attract the talent that continues to build upon the innovative spirit here in America.
“The reason I’m in America along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of H1B. Take a big step back and F*** YOURSELF in the face. I will go to war on this issue the likes of which you cannot possibly comprehend.” – Elon Musk
Undoubtedly, Musk’s sentiments resonate with a lot of entrepreneurs. They make the case that increasing the annual limit on H-1B visas is an important first step to cultivating and retaining these productive immigrant-built firms. The National Venture Capital Association (NVCA) doesn’t want you to worry. They argue that if we’re really serious about maximizing economic growth we should increase the number of H-1B visas issued each year.
“Raising the annual cap of H-1B visas issued each year to educated and highly skilled immigrants who work in jobs that require a substantial amount of technical and specialized training is fundamental to generating more successful immigrant-founded companies.” – National Venture Capital Association
Despite these defenses, the Trump administration maintains that its crackdown on the H-1B program is necessary to protect American jobs. Critics say the system is badly broken and in need of reform, not punitive actions that would only serve to quash innovation. The battle between saving American jobs and maintaining our position in international markets has become more contentious than ever. This current controversy always evokes impassioned diatribes from both camps.
Mike Krieger, co-founder of Instagram, had to deal with visa issues in 2010 that nearly made him give up on his entrepreneurial dreams. His story illustrates the hurdles that so many others faced while trying to comply with the confusing H-1B maze. Yet this system is often compounded with additional bureaucratic hurdles.
The controversy over the H-1B visa program reflects much larger attempts to refocus the discussion on immigration policy and the role immigrants play in rebuilding America’s economy. Employers are more often relying on educated foreign workers to fill critical tech and engineering roles. The future of the H-1B program remains bleak.
