'H-1B visa system a scam': Trump official vows major changes
What's the story
The United States is planning to overhaul its immigration system, including the H-1B visa and Green Card programs. The announcement was made by Commerce Secretary Howard Lutnick, who called the current H-1B visa system a "scam." He said it allows foreign workers to take jobs away from Americans. "Hiring American workers should be the priority of all great American businesses," Lutnick told Fox News in an interview.
Program overhaul
Proposed changes include wage-based visa allocation
Lutnick also revealed plans to replace the current lottery system of allocating H-1B visas with a wage-based system. He said, "We're going to change that program because that's terrible. We're going to change the green card." Lutnick also criticized the green card system, citing the income levels of holders as proof of misdirected priorities. "We give green cards—the average American makes $75,000 a year, and the average green card recipient $66,000 a year. Why are we doing that?" he said.
Past efforts
H-1B program and its significance
The proposed changes include giving priority to higher-paid applicants in visa allocation. A draft rule approving this change was cleared by the US Office of Information and Regulatory Affairs earlier this month. The H-1B program, which is widely used by the tech industry, has an annual cap of 85,000 visas. Currently, a lottery system decides which employers can file visa petitions.
Policy reversal
Previous attempts and challenges in implementing changes
In 2021, the Department of Homeland Security (DHS) had proposed allocating H-1B slots based on wage levels divided into four tiers. During Trump's first term, DHS sought to replace random selection with a wage-priority system as part of its "Buy American, Hire American" policy. However, the Biden administration withdrew this rule in 2021 after facing significant opposition. The latest approval indicates a renewed push for changes in H-1B visa allocation by the government.
Economic impact
Trump's perspective on H-1B visas
Trump has often criticized the H-1B visa program, claiming it was used to bring in cheaper foreign labor at the expense of American workers. In February, Trump unveiled plans for selling a "gold card" visa for $5 million that will offer wealthy buyers permanent residency. "That's (gold card) where we're going to start picking the best people to come into this country," Lutnick said.