Key Points
- The H-1B visa program allows U.S. companies to hire highly skilled foreign workers.
- Major tech companies like Amazon and Google are significant users of the program.
- The annual cap of 85,000 visas is insufficient to meet industry demand. Critics highlight wage disparities and underpayment of H-1B workers.
- Studies link the program to innovation, revenue growth, and increased U.S. patents. Foreign-born workers now account for 26% of the U.S. tech workforce.
The H-1B visa program, a cornerstone of America’s tech industry, remains contentious, underscoring the nation’s dependence on foreign talent. Created in 1990, the program allows U.S. companies to hire highly skilled workers from other countries to fill specialized roles in software development, computer science, and engineering. Companies such as Amazon, Google, and Tesla are among its major users, employing H-1B holders for critical technical positions.
The annual cap of 85,000 new visas is vastly oversubscribed, with hundreds of thousands of applications submitted yearly. A lottery system determines the recipients, while employees of universities and certain nonprofits are exempt from the cap. Despite this limitation, the demand for H-1B workers remains high, fueled by a persistent skills gap in STEM fields. In October 2024, there were twice as many job openings as unemployed professionals in the “professional and business services” sector, encompassing most tech roles.
Critics argue that the program underpays workers, with 60% of certified positions earning below the local median wage, according to a 2020 Economic Policy Institute paper. Attempts to reform the program, such as raising wage requirements under the Trump administration, failed to take effect during the Biden presidency.
Despite its flaws, the program is widely regarded as a driver of innovation. Studies show that companies winning the H-1B lottery experience revenue and workforce growth, contribute to increased U.S. patents, and elevate incomes for both U.S. and Foreign-born workers.
Elon Musk and other tech leaders emphasize reform, while MAGA supporters call for prioritizing American workers. Economists note that the companies dominating H-1B allocations, such as Cognizant and Tata Consultancy Services, often use visas for less senior, lower-paying roles.
Over the past three decades, U.S. software developers have quadrupled to 2.85 million, and computer scientists have grown sevenfold to 3.5 million. Foreign-born workers now comprise 26% of these roles, highlighting the enduring impact of the H-1B program on America’s tech landscape.
