President Donald Trump's overhaul of the H-1B visa program has garnered cautious approval from advocates for American professionals and recent college graduates.
According to Breitbart, this reform does not eliminate the H-1B visas but significantly alters the beneficiaries of the program. Hany Girgis, a tech-training CEO, remarked, "It does not end H-1Bs, but it fundamentally reshapes who benefits from them."
The new rules are expected to face legal challenges from employers and their attorneys, as they adjust the allocation of new H-1B workers towards companies offering higher wages.
This adjustment is anticipated to exert some pressure on firms to hire young American graduates, although it will not curtail the substantial influx of foreign workers through other channels, such as the "cap-exempt" H-1B, J-1, L-1, L-2, OPT, and CPT work-permit programs.
The agency responsible for awarding visas issued a press statement explaining the changes: "The new rule replaces the random lottery for selecting visa recipients with a process that gives greater weight to those with higher skills." Matthew Tragesser, a spokesman for U.S. Citizenship and Immigration Services, elaborated, "The existing random selection process of H-1B registrations was exploited and abused by U.S. employers who were primarily seeking to import foreign workers at lower wages than they would pay American workers."
He further emphasized that the new weighted selection process aligns with Congress' intent for the H-1B program and aims to bolster America's competitiveness by encouraging employers to petition for higher-paid, higher-skilled foreign workers. The rule is set to take effect on February 27, 2026, and will be implemented for the FY 2027 H-1B cap registration season.
Trump's reform emerges amidst competing pressures within the White House. While many college graduates advocate for the termination of outsourcing programs, investors and business groups favor their continuation due to the substantial profits and incentives they provide for hiring managers and CEOs.
However, Trump's revamp also reflects public demand for the administration to address other programs that are undermining the American middle class and hindering shareholders' ability to balance CEOs' profit-driven focus with professionals' emphasis on research and product quality. Girgis suggested, "Maybe now is the moment to eliminate H-1B and OPT pipelines that undercut wages and block new grads."
In September, Trump criticized the program, highlighting its misuse by companies that simultaneously lay off American professionals. He cited examples of firms approved for thousands of H-1B workers while reducing their American workforce. The program has facilitated foreign workers in securing one out of every four jobs in the U.S. science, technology, and engineering sectors, according to a proclamation.
The number of foreign STEM workers in the United States has more than doubled between 2000 and 2019, while overall STEM employment increased by only 44.5 percent during that period. The proclamation noted, "The key facilitator for this influx of foreign STEM labor has been the abuse of the H-1B visa."
In a move to address these concerns, Trump imposed a $100,000 fee on the arrival of some new H-1B workers in 2026. Although this fee is not expected to significantly benefit Americans due to the availability of alternative pipelines for foreign white-collar workers, it represents a step towards reform. Business groups challenged the fee in court but were unsuccessful, as a judge ruled that the fee is clearly permitted by law.
The judge stated, "Congress has granted the president broad statutory authority, which he has used to issue the proclamation addressing, in the manner he sees fit, a problem he perceives to be a matter of economic and national security."
This legal victory bolsters Trump's capacity to implement further reforms to the outsourcing visa, according to advocates for American workers. For instance, the federal government could prohibit the use of H-1Bs by companies with federal contracts, and the Department of State could enhance oversight of the visa-granting process, which has been plagued by fraud, particularly concerning Indian applicants.
Daryl Joseffer, chief counsel of the U.S. Chamber of Commerce, expressed disappointment with the court's decision, stating, "The $100,000 fee makes H-1B visas cost-prohibitive for businesses, especially small- and medium-sized businesses that can least afford it. We are disappointed in the courts decision and are considering further legal options to ensure that the H-1B visa program can operate as Congress intended: To enable American businesses of all sizes to access the global talent they need to grow their operations."
Vice President JD Vance is also playing a role in assisting Trump as he navigates the competing demands of voters and investors. The administration's efforts to reform the H-1B program reflect a broader strategy to prioritize American workers and address the challenges posed by outsourcing and foreign labor.
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