Trump's H‑1B Fix Could Be Improved: Here's What The U.S. Really Needs

Forbes

19 hours ago

There is discussion about cancelling the H1-B visa program or repairing it. President Trump has ... More proposed new changes.
The U.S. H-1B visa program, once a gold standard for attracting global talent, is now under severe strain. But Trump's H1-B visa fix is not enough, more than what has been proposed by the Trump administration is needed. America deserves better and it can be done.
Historical Background To The U.S. H1-B Program.
The Immigration Act formally established the H-1B visa for workers in specialty occupations that require individuals with theoretical or technical expertise, typically in fields such as IT, engineering, mathematics, and medicine. Initially capped at 65,000 visas per year, the program underwent expansion during the 1990s tech boom. In 1998 and again in 2000, Congress temporarily increased the cap—first to 115,000 and then to 195,000—in response to lobbying by the tech industry. Unfortunately, these elevated caps were allowed to expire, returning to 65,000 plus 20,000 for U.S. master's degree holders by 2004.
Over the past two decades, reforms have aimed at curbing abuse, ensuring fair wages, and increasing scrutiny of outsourcing firms. The American Competitiveness in the 21st Century Act (2000) introduced portability of H‑1B status and eased green card processing backlogs. Under the first Trump administration, the 2017 'Buy American, Hire American' executive order led to stricter adjudications, a surge in Request for Evidence (RFEs), and a rescission of deference to prior approvals. In 2020, the Department of Homeland Security and Department of Labor introduced wage-based prioritization and significantly raised prevailing wage levels (though these were partially struck down in court).
Most recently, the Biden administration proposed modernizing the program to enhance integrity and transparency, while also reaffirming the role of workers in allowing U.S. employers to hire foreign workers temporarily to improve U.S. competitiveness. The program remains the workhorse of the U.S. immigration system. Central to debates on importing skilled immigration, is balancing the economic importance of H-1B demand with concerns over labour market fairness for American workers. However, the H1-B program has largely devolved into a lottery-dependent system that often rewards luck over merit and has become susceptible to manipulation by outsourcing firms.
President Donald Trump takes a question from a member of the media. He is in the midst of changing ... More the H1-B work visa program. (Photo by)
Fixing The H1B Visa Program President Trump's Way
Now, President Trump's 2025 proposal aims to overhaul the system by replacing the random draw with a wage-weighted selection process. The goal is to transform H-1B into an elite pathway for high-wage, high-skill professionals, especially in fields such as STEM, technology, and healthcare. Under this plan, foreign workers would only be admitted to supplement—not displace—the U.S. workforce, addressing concerns about wage suppression and job loss. While aligned with Trump's broader merit-based immigration vision, critics warn that this approach may marginalize lower-wage applicants and disadvantage smaller firms and startups. But is this a real fix? Or could something more creative be considered?
What Other Countries Are Doing
Several countries have developed or reformed H-1B-style immigration programs to attract high-skilled foreign talent, particularly in STEM fields, amid global competition for innovation and workforce growth. The United Kingdom has introduced the Skilled Worker visa and a Global Talent visa, prioritizing applicants with job offers in shortage occupations or exceptional achievement in fields like AI and engineering. Australia's Temporary Skill Shortage (TSS) visa functions similarly, with a focus on employer sponsorship and labor market testing. Germany's Blue Card system, aligned with the EU framework, facilitates residency for highly qualified workers meeting salary thresholds and educational criteria. Even Japan and South Korea, historically cautious about immigration, are loosening requirements for skilled professionals, while Singapore recently launched the Overseas Networks And Expertise Pass to lure top executives, entrepreneurs, and researchers. Across the board, these nations are balancing economic needs with domestic labour concerns by linking work visas to salary levels, labour shortages, and long-term integration strategies.
Ontario Premier Doug Ford is proposing to introduce provincial work permits in Canada. (Steve ... More Russell/Toronto Star via Getty Image)
The Canadian Approach to Work Permits: An Example
Canada's foreign worker visa system operates primarily through two complementary streams: the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP). The TFWP enables Canadian employers to hire foreign nationals to address labour shortages, to demonstrate the need for a foreign worker, and to ensure that no Canadian will be displaced. In contrast, the IMP facilitates work permits without an LMIA for reasons that serve Canada's broader economic, cultural, or diplomatic interests, such as intra-company transfers, post-graduate work permits, or reciprocal agreements like USMCA (formerly NAFTA). Both streams can lead to permanent residency through pathways like the Express Entry system or Provincial Nominee Programs. Canada prioritizes worker rights by mandating employer compliance with wage standards, working conditions, and access to provincial employment protections, while also offering open work permits in certain humanitarian and spousal sponsorship cases. Canada also offers streamlined employer-sponsored pathways such as the Global Talent Stream, which provides expedited work permits for tech professionals in as little as two weeks.
However, recently, Canadian leaders have proposed taking even a more pragmatic approach. Under Section 95 of its Constitution, provinces like Ontario are utilizing their authority to address local labour shortages directly. In 2024, Premier Doug Ford announced a plan for Ontario to issue 100,000 work permits over ten years, targeting high-demand sectors such as healthcare. Canada's Provincial Nominee Program, which already accounts for over 40% of economic immigrants, bypasses lotteries and instead uses a transparent, merit-based points system considering education, age, experience, and language ability. Express Entry, the digital intake portal, allows provinces and employers to select candidates swiftly. Crucially, spouses and dependents receive immediate work permits, supporting household stability and integration.
U.S. Constitutional Impediments to H1B Visa Reform?
The U.S. should take note. Though immigration is a federal domain under the Constitution, Congress has historically delegated immigration authority in specific contexts, including special visa rules for Guam and the Northern Mariana Islands. There's a clear legal pathway to authorize states to sponsor skilled foreign workers under a federally approved framework. A pilot State-Based Visa Program could allow states like California, Texas, or Florida to recruit for sector-specific shortages using real-time labour data. State departments of labour, working with vetted employers, could certify needs and issue permits valid within their jurisdictions, avoiding the randomness and inflexibility of the current H-1B system.
Why It Matters Now
President Trump's H1-B visa fix could be improved with something smarter, faster, and fairer. The H-1B program's economic impact is undeniable: skilled immigrants contribute billions to the U.S. economy and are disproportionately represented in AI, STEM, and tech leadership. Tech giants like Google, Microsoft, and Apple were built in part on H-1B talent. But with every failed reform effort, America risks losing its competitive edge. Meanwhile, countries such as Canada, Australia, and the U.K. are establishing streamlined pathways for skilled workers. It's time to fix that.