Trump suspends H-1B, other visas, for the rest of 2020

Besides H-1B, H-4, H-2B, and a few categories of J visas were suspended. In the sweeping order, Trump also blocked the entry of seasonal workers of the hospitality industry into the US.

American companies having a global presence, and multi-national companies having units in the US, were restricted from transferring employees to the country for short stints, which usually last months or sometimes years.

The White House said the US will now be moving towards a "merit-based immigration system".

It also said the administration will look into loopholes which allowed companies to switch American workers with low-cost foreign employees.

As per the proposed reforms, the H-1B program will now prioritize workers, who get the highest wage, hence, ensuring that the most skilled workers are let inside the country.

Notably, there's a limit of 85,000 on H-1B visas issued per year, and last year, 225,000 applications were received. The ones who were allowed were picked through a lottery.

"The president has instructed us to get rid of the lottery and replace it with ranking salaries — so top 85,000 salary offers among the 225,000 or so applicants will get visas," the official explained.

Reports said the new rules, coupled with the restrictions on the issuance of green cards, would free up some 525,000 jobs for Americans. Nearly 46 million Americans have lost their jobs in the pandemic and the lockdowns which followed.

This order will hit Indians the hardest, who make for nearly 70% of the 85,000 people allowed into the US under the H-1B visa program.

The decision garnered the Trump administration ire from several quarters. Google CEO Sundar Pichai, who was born in India, said immigration has contributed to America's economic growth and made it a leader in the tech world.

"Disappointed by today's proclamation - we'll continue to stand with immigrants and work to expand opportunity for all," he tweeted.

Tesla Boss Elon Musk wasn't pleased either.

Separately, Indian-American Congressman Raja Krishnamoorthi expressed disappointment, urging Trump to roll back the order.

"I urge him to reverse this decision to help ensure our health care system and broader economy are ready to combat the next phase of (coronavirus) pandemic," he said.

The Congressman highlighted that the H-1B visa program helps tackle the dangerous shortage of healthcare workers too.

Three leading Congressmen — Dick Durbin, Bill Pascrell, and Ro Khanna, said it wasn't the right approach, adding, "Instead of suspending H-1B visas, the Trump Administration should ask Congress to pass the H-1B and L-1 Visa Reform Act of 2020, which reforms the H-1B program with a scalpel, not a sledgehammer."

And Congresswoman Donna E Shalala claimed Trump was now endangering the economy.