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

Forbes

time4 days ago

  • Business
  • Forbes

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

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.

JD Vance Slams Microsoft For Firing Americans, Relying on H-1B Workers: Satya Nadella Says Layoffs Are 'Weighing Heavily' On Him
JD Vance Slams Microsoft For Firing Americans, Relying on H-1B Workers: Satya Nadella Says Layoffs Are 'Weighing Heavily' On Him

Yahoo

time4 days ago

  • Business
  • Yahoo

JD Vance Slams Microsoft For Firing Americans, Relying on H-1B Workers: Satya Nadella Says Layoffs Are 'Weighing Heavily' On Him

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Vice President, JD Vance has criticized Microsoft Corp. (NASDAQ:MSFT) and other tech giants for laying off American workers while heavily depending on immigrant labor through the H-1B visa program. What Happened: Speaking at a bipartisan event hosted by the Hill and Valley Forum on Wednesday, Vance questioned the ethical and economic justification of companies conducting mass layoffs while simultaneously increasing applications for employment-based visas. Check out the current price of MSFT stock here. 'You see some big tech companies where they'll lay off 9,000 workers, and then they'll apply for a bunch of overseas visas. And I sort of wonder; that doesn't totally make sense to me,' Vance said. Trending: 7,000+ investors have joined Timeplast's mission to eliminate microplastics— While he did not specifically name Microsoft at first, he later agreed when the host mentioned it and said that he read about their mass layoffs. He quoted the president, emphasizing the need for the best and brightest to make America their home and build great companies, but criticized companies that lay off thousands of American workers and then claim they can't find workers in America. 'That displacement and that math worries me a bit....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 bullshit story,' said Vance. Meanwhile, Microsoft's CEO, Satya Nadella, addressed the recent job cuts in a memo to employees on Thursday. ' I want to speak to what's been weighing heavily on me, and what I know many of you are thinking about: the recent job eliminations. These decisions are among the most difficult we have to make.'Why It Matters: Microsoft's layoffs have been a point of contention. The company's second round of downsizing in 2025 affected less than 4% of its workforce, or 9,000 workers. The company attributed the layoffs to cost control measures affecting various teams, geographies, and tenures. Notably, the Nadella-led company has fired over 15,000 people until now in 2025, as per CNBC. Despite these layoffs, Microsoft has been actively expanding its artificial intelligence team, reportedly hiring around two dozen employees from Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) DeepMind. This expansion has raised questions about the company's strategic decisions amid the layoffs. In the memo, Nadella reflected on Microsoft's decade-long mission to empower every individual and organization worldwide to achieve more, and discussed how the rise of AI is reshaping that vision On a year-to-date basis, Microsoft stock surged 22.5% while crossing the $500 mark on July Next: $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Image via Shutterstock This article JD Vance Slams Microsoft For Firing Americans, Relying on H-1B Workers: Satya Nadella Says Layoffs Are 'Weighing Heavily' On Him originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Key immigration proposal vows to end 'backdoor hiring practices' in American universities
Key immigration proposal vows to end 'backdoor hiring practices' in American universities

Fox News

time6 days ago

  • Business
  • Fox News

Key immigration proposal vows to end 'backdoor hiring practices' in American universities

EXCLUSIVE: A new Republican proposal introduced on Wednesday would scrap the H-1B visa exception for higher education staff. There is currently a 65,000-person cap for the visa, with exceptions for higher education and other select groups, including an extra 20,000 that can be doled out to those with master's degrees or beyond. The "Colleges for the American People Act of 2025" from Rep. Tom Tiffany would repeal the carveout made in the Immigration and Nationality Act, and have those from other countries seeking to work in higher education go through the normal H-1B visa process. "American students spend years earning degrees, only to watch universities hand good-paying jobs to foreign workers on special visas," Tiffany said in a statement. "The CAP Act ensures our institutions invest in the people they are meant to serve and ends the backdoor hiring practices that undercut American workers." The proposal would not be retroactive, so current H-1B visa holders at universities could still apply for their extension without going towards the limit. The legislation is co-sponsored by Rep. Andrew Clyde, R-Georgia. The conservative outlet Wisconsin Right Now reported that there are 495 staffers in Wisconsin's university system who have the visa, which comes with roughly a $43 million annual price tag for salaries. For fiscal year 2026, U.S. Citizenship and Immigration Services got enough petitions for the H-1B visa caps as of last week. The visas continue to be a major point of debate across the political spectrum, as some argue that they boost business capabilities in the United States, especially in the technology sector. Others, like Sen. Bernie Sanders, have blasted them as exploitative. "The main function of the H-1B visa program and other guest worker initiatives is not to hire 'the best and the brightest,' but rather to replace good-paying American jobs with low-wage indentured servants from abroad," the Vermont senator posted to X in January. "The cheaper the labor they hire, the more money the billionaires make." As of 2019, there were just under 600,000 H-1B visa holders, according to USCIS data. The Trump administration could make other reforms to the program soon, according to GovTech. Besides H-1B visas, student visas in some cases have also recently come under fire, particularly at Harvard University. The State Department announced on Wednesday that they are looking into whether it can continue to be part of the Exchange Visitor Program due to "national security" concerns.

New Trump Immigration Policy: Ending The H-1B Visa Lottery
New Trump Immigration Policy: Ending The H-1B Visa Lottery

Forbes

time21-07-2025

  • Business
  • Forbes

New Trump Immigration Policy: Ending The H-1B Visa Lottery

Donald Trump delivers remarks during a meeting with German Chancellor Friedrich Merz in the Oval ... More Office on June 5, 2025. The Trump administration plans to publish a proposed rule to end or significantly change the annual H-1B visa lottery. (Photo by) The Trump administration plans to publish a proposed rule to end or significantly change the annual H-1B visa lottery. Near the end of Donald Trump's first term, the administration proposed ending the current random selection process used each year when H-1B registrations exceed the annual limit of 65,000, plus a 20,000 exemption for individuals with an advanced degree from a U.S. university. In its place, U.S. Citizenship and Immigration Services would have awarded H-1B petitions based on salary from highest to lowest. Commenters warned the rule violated the statute and would disadvantage recent international students and other early-career professionals. The Office of Management and Budget is reviewing the rule and could clear it for publication within weeks. The New Immigration Rule: Same As The Old Rule? On January 8, 2021, the Department of Homeland Security published a final rule to modify its process for selecting H-1B petitions when registrations surpass the annual limit of 85,000. The Biden administration initially delayed and then ultimately chose not to implement the rule. In the final rule in 2021, DHS described the new selection process: 'USCIS will rank and select the petitions received on the basis of the highest Occupational Employment Statistics wage level that the proffered wage equals or exceeds for the relevant Standard Occupational Classification code in the area of intended employment, beginning with OES wage level IV and proceeding in descending order with OES wage levels III, II, and I.' Employers normally pay higher salaries to more senior employees, Level 3 (experienced) and Level 4 (fully competent) as indicated on the labor condition application. Recent international students and other individuals starting their careers are typically paid at Level 1 and Level 2. (Those are the minimum required salaries, and actual pay is often higher.) According to DHS, under its proposed system, USCIS would not have selected anybody paid at Level 1 for the regular cap or advanced degree exemption. USCIS would have chosen only 20% of individuals at Level 2 for the 20,000 advanced degree exemption and 75% of the Level 2 registrants for the 65,000 regular cap, or about 50% combined, according to DHS data. DHS based its analysis on far fewer registrations than the 343,981 eligible registrations USCIS received for FY 2026. That means with enough filings for Level 3 and Level 4 registrants, individuals paid at Level 2 would be shut out from obtaining H-1B petitions. In 2021, a National Foundation for American Policy analysis found that an international student may be 54% more likely to get an H-1B petition under the current H-1B lottery (or registration) system than under the Trump administration's rule that would have ended the H-1B lottery. The analysis was based on examining actual cases of recent international students and H-1B petition filings obtained from an immigration law firm. Approximately 90% of the recent international student cases examined were paid at Level 1 or Level 2. It remains unclear whether the new rule will be identical to the final rule published in January 2021. If so, the same arguments of supporters and opponents will apply. It is also possible the rule will differ substantively, but still produce the same result, i.e., disadvantage international students, early-career professionals and people employed in less highly compensated jobs. The only clue so far is the titles for the two rules differ. DHS called the final rule published in January 2021 'Modification of Registration Requirement for Petitioners Seeking To File Cap-Subject H-1B Petitions.' However, the title of the new rule under review at OMB is 'Weighted Selection Process for Registrants and Petitioners Seeking To File Cap-Subject H-1B Petitions.' 'Weighting would suggest giving a higher probability of being selected for certain applicants, but everyone would still have some chance at being selected,' said economist Mark Regets, a senior fellow at NFAP. Weighting implies that USCIS would still conduct a lottery but, for example, if weighted solely by salary, an H-1B applicant with a proposed salary of $200,000 per year would have twice the chance of being selected as an applicant who earns $100,000 annually. It is also possible USCIS is not using the term 'weighting' in a normal sense, and the new rule will be similar to the January 2021 final rule. Analysts would be surprised if the new H-1B rule spares international students, given Stephen Miller's well-known views as the chief architect of the Trump administration's immigration policies. Trump officials have stated an intention to end Optional Practical Training and STEM OPT and eliminate duration of status for international students. The administration attempted to deport thousands of international students for minor offenses and has banned the entry of students to attend Harvard. International students are prevalent in the fields related to artificial intelligence. More than 70% of the full-time graduate students in electrical engineering and computer and information sciences at U.S. universities are international students. Among doctorate holders in the United States performing research and development as a major work activity, 83% in computer and information sciences and 80% in electrical and computer engineering are foreign-born, according to an NFAP analysis. The Department of Homeland Security logo. (Photo by Samuel Corum/) The Issues Raised By An Immigration Rule Changing H-1B Visa Lottery Selection The new rule will not address the most significant immigration issue that many employers cite: the low number of H-1B petitions relative to the demand for highly skilled talent in an economy reliant on science and technology. An NFAP analysis found USCIS rejected almost two-thirds of H-1B applications for FY 2026 due to the low annual limit. The 85,000 annual H-1B limit equals about 0.05% of the U.S. labor force. H-1B visas are often the only practical way a high-skilled foreign national, including an international student, can work long term in the United States. There were two primary criticisms of the final rule published in January 2021 that are likely relevant to the new rule. First, opponents argued that the rule was unlawful and that Congress would need to amend the statute to implement the changes proposed by DHS in its rule. 'Congress spoke directly and clearly by stating that H-1B petitions were subject to a numerical limit and would be considered not by order of skill or wage levels, by relative value to the U.S. economy, or by any other prioritizing criterion other than filing order,' according to a comment signed by the American Immigration Lawyers Association and other organizations. 'This is unambiguous in the statute where the INA establishes that consideration for an H-1B visa or status 'shall' be 'in the order in which petitions are filed.'' The Compete America Coalition, NAFSA: Association of International Educators, National Immigration Forum, TechNet, the U.S. Chamber of Commerce and others also signed the comment. Commenters noted that in January 2019, when DHS established the H-1B registration system, it said in a reply to comments that it could not prioritize H-1B petitions based on salary or other criteria: 'DHS believes, however, that prioritization of selection on other bases such as those suggested by the commenters would require statutory changes. DHS believes that implementing a quota would be inconsistent with the existing statute, as Congress has implemented quotas in other contexts when it has intended to do so.' Experts also warned the rule would likely put the United States at a disadvantage in recruiting talent. Bo Cooper, a partner at the Fragomen law firm and a former general counsel at U.S. Citizenship and Immigration Services, said in 2021 that the rule would establish as U.S. government policy a priority for recruiting individuals who are already senior professionals, even though nearly all of America's competitors for talent focus on attracting young talent, particularly recent university graduates. The rule would have disfavored several significant occupations. NFAP identified 11 occupations, including physicians, internists, pediatricians, dentists and computer and information systems managers, where individuals paid Level 1 salaries would be unable to obtain an H-1B petition under the rule, even though their Level 1 salaries were higher than the median salary for Level 3 in all occupations. The rule also would have made it much less likely that physicists, microbiologists and medical scientists (among others) could gain H-1B petitions: More than half of the labor condition applications for those occupations in FY 2019 were for Level 1, and close to 90% were paid at Level 1 or Level 2. Middle schools and high schools, which are not cap-exempt, would struggle to hire math and science teachers, as approximately 90% are paid at Level 1 or Level 2. Focusing on salary alone will likely close the door to talented individuals in less highly compensated fields. Katalin Karikó, who earned the 2023 Nobel Prize in Physiology or Medicine for her groundbreaking research on messenger RNA, earned only $17,000 in 1985 (initially on a J-1 visa), which would be equivalent to less than $42,000 today. After DHS publishes the immigration rule, the public will have an opportunity to submit comments. Unless a lawsuit succeeds in blocking the rule, the new H-1B selection process could be in place by March 2026, before the FY 2027 H-1B cap selection.

How Much Do Microsoft Employees Make? Salaries Revealed
How Much Do Microsoft Employees Make? Salaries Revealed

Entrepreneur

time15-07-2025

  • Business
  • Entrepreneur

How Much Do Microsoft Employees Make? Salaries Revealed

Data from thousands of new federal filings shows how much Microsoft is paying its employees, from software engineers to product designers. How well does it pay to work at Microsoft? According to federal filings, seen by Business Insider on Tuesday, Microsoft is compensating software engineers from $82,971 to $284,000 in base salary. It's slightly lower than other tech giants; Google pays software engineers from $109,180 to $340,000, and Meta pays anywhere from $120,000 to $480,000. Related: Here's How Much a Typical Salesforce Employee Makes in a Year Microsoft product managers can make up to $250,000, while product designers can take home up to $208,058. Data scientists are offered salaries of up to $274,500 at the tech giant, as business analysts are paid up to $191,580. The data is drawn from 5,400 documents Microsoft filed with the U.S. Department of Labor during the first quarter of 2025. The filings are required when Microsoft hires foreign workers through the H-1B visa program, which allows highly skilled professionals to work in specialty occupations. The documents show the base annual salaries awarded to H-1B visa workers, excluding additional compensation in the form of signing bonuses and stock options. The typical Microsoft employee makes nearly $200,000. A mid-level employee at Microsoft made $193,744 for the fiscal year 2024, per a filing the company submitted to the U.S. Securities and Exchange Commission (SEC) in December. According to the H-1B filings, Microsoft pays other roles as follows: Business Program Manager : $102,380 to $195,100 : $102,380 to $195,100 Cloud Network Engineer : $122,700 to $220,716 : $122,700 to $220,716 Customer Experience Engineer : $126,422 to $239,585 : $126,422 to $239,585 Data Analyst : $132,385 to $205,000 : $132,385 to $205,000 Electrical Engineer : $138,995 to $247,650 : $138,995 to $247,650 Research Scientist : $146,054 to $208,000 : $146,054 to $208,000 Technical Program Manager: $120,900 to $238,000 The SEC filing showed that Microsoft CEO Satya Nadella received an annual total compensation of $79.1 million in 2024, or 408 times more than that of the median employee. Stocks comprised most of Nadella's compensation. Microsoft CEO Satya Nadella made nearly $80 million in 2024. Photographer: David Ryder/Bloomberg via Getty Images In comparison, Google CEO Sundar Pichai earned over $10.7 million in 2024, roughly 32 times more than the $331,894 earned by the median Google employee last year. Related: Here's How Much a Typical Nvidia Employee Makes in a Year Microsoft recently laid off thousands of employees, including 6,000 employees in May. Earlier this month, the company announced that it would be cutting an additional 9,000 workers, or around 4% of its workforce. Microsoft is one of the most valuable companies in the world, second only to Nvidia, with a market value of $3.769 trillion at the time of writing. For the full list of roles and salaries at Microsoft for H-1B workers, click here. Join top CEOs, founders and operators at the Level Up conference to unlock strategies for scaling your business, boosting revenue and building sustainable success.

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