End US visa programs: Why Trump supporters want H-1B visa removed

Business Standard

3 days ago

Once again, the H-1B visa, much loved by Indian professionals, is back in the spotlight—this time, for all the wrong reasons. Amid a fresh wave of layoffs in the US tech sector, questions are mounting over why companies are continuing to hire foreign workers through the H-1B route while cutting jobs at home.
After Microsoft laid off around 9,000 employees in phases earlier this year, Intel has now announced plans to slash over 25,000 jobs. The backlash has been swift.
US Vice President JD Vance on Friday publicly criticised Microsoft, saying he does not buy the 'bulls**t story' that the company can't find qualified American workers. 'That displacement and that math worries me a bit,' Vance said at a bipartisan event hosted by the Hill and Valley Forum.
'We want the very best and the brightest to make America their home. But I don't want companies to fire 9,000 American workers and then to go and say, 'We can't find workers here in America.' That's a bulls**t story,' said Vance.
Former Trump adviser Steve Bannon, a vocal critic of the H-1B system, called for an end to all employment-based visa programmes.
'We need to cut all the visa programs. If we are going to do it, let's do it hard-core and clean it up,' said Bannon on his podcast.
He said foreign workers were not better educated, but tech companies wanted 'indentured servants' who would work under pressure for less money. 'The situation in Silicon Valley is a festering sore,' Bannon said, claiming that around 12 million trained IT graduates in the US are unemployed while jobs are given to visa holders.
'There is always a way to get 'Einsteins',' he said, adding that talented individuals should be encouraged to stay in their home countries and 'make them great again like they are doing in Japan'.
Vance's remarks were quickly countered by an Indian-origin tech investor who accused him of misleading the public.
In a post on X, the investor wrote, 'Microsoft didn't bring in new foreign workers after laying people off, they renewed visas for long-time employees who've been in the U.S. legally for many many years, stuck in green card backlogs.'
He argued that companies were simply allowing employees to stay in the roles they had already earned. 'Saying that's 'replacing Americans' is like saying letting a loyal employee stay and renew his visa is the same as hiring someone new off the street,' the post said.
The investor also pointed out that many of the 9,000 employees laid off were H-1B holders. 'They got no severance, no safety net, just a 60-day countdown to leave the country. If you care about fairness, fix the backlog. Don't weaponise lies.'
US weighs change to H-1B selection system
At the policy level, the Trump administration is reviewing changes to how H-1B visas are awarded. The US Department of Homeland Security (DHS), in a filing to the Office of Information and Regulatory Affairs earlier this month, proposed replacing the current lottery system with a 'weighted selection process'.
The change would apply to the capped portion of the visa programme—85,000 visas per year, including 65,000 for general applicants and 20,000 for those with advanced degrees from US universities. The rule is still under review and the specifics are yet to be made public, but US Citizenship and Immigration Services (USCIS) is listed as the implementing agency.
'The H-1B is the primary way through which the United States attracts high-skilled immigrants. That it is randomly allocated is insane,' said Connor O'Brien, a research analyst at the Economic Innovation Group.
He added, 'Eliminating the H-1B lottery in favour of a system that prioritises higher earners first is a no-brainer... Giving away these visas randomly is an enormous, missed opportunity to attract truly scarce talent.'
Federal agency warns against bias in hiring
The Equal Employment Opportunity Commission (EEOC) has issued a warning to employers, saying that favouring foreign workers over American citizens in recruitment violates federal law.
'Unlawful bias against American workers, in violation of Title VII, is a large-scale problem in multiple industries nationwide,' said EEOC acting chair Andrea Lucas on February 19, 2025.
She alleged that some companies had policies that preferred illegal aliens, migrant workers, and visa holders over American workers. 'The law applies to you, and you are not above the law,' she said. 'The EEOC is here to protect all workers from unlawful national origin discrimination, including American workers.'
The agency outlined common reasons for such practices:
* Lower wage costs through loopholes or off-the-books payments
* Assumptions that foreign workers are less likely to raise complaints
* Client preferences for foreign workers
* Perceptions that foreign workers have a stronger work ethic
Counterview: H-1B workers are well-paid and boost US economy
The American Immigration Council disputes the notion that H-1B workers harm domestic employment. Its research shows that in 2021, H-1B holders had a median salary of 108,000, more than double the national average of 45,760. Between 2003 and 2021, their median wage rose by 52 per cent, compared to 39 per cent for the general workforce.
'The US economy relies on H-1B visas to address skilled labour shortages, particularly in technology, engineering, and healthcare, where domestic supply is insufficient,' Jidesh Kumar, managing partner at King Stubb & Kasiva, told Business Standard.
'Tech giants and startups alike depend on H-1B professionals for cutting-edge research and product development. Many also go on to become entrepreneurs, creating jobs and boosting the economy.'
Kumar warned that tightening the programme could drive global talent to other destinations. 'Restricting the programme could force top global talent to seek opportunities in countries like Canada or the UK, potentially undermining the US's position as a leader in innovation and economic growth,' he said.
Indian applicants dominate H-1B pool
In the 2023 financial year, about 191,000 Indian professionals were granted H-1B visas. The number rose to approximately 207,000 in FY 2024. Despite this, over one million Indians remain stuck in the employment-based green card backlog due to country-specific quotas and annual limits, according to USCIS data.
For FY 2026, USCIS selected 120,141 H-1B registrations—a sharp drop from previous years and the lowest since 2021. Analysts have linked this to increased scrutiny of multiple registrations and a hike in the application fee.