• Source:JND
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The White House has defended its latest crackdown on the H-1B visa program, citing widespread misuse by major American corporations. In a newly released fact sheet, officials highlighted instances where firms secured thousands of H-1B approvals while simultaneously laying off tens of thousands of US employees.

According to the statement, one company was approved for 5,189 H-1B workers in FY 2025 even as it laid off roughly 16,000 American workers this year. Another company received approval for 1,698 H-1B workers but still announced the dismissal of 2,400 employees in Oregon in July. A third firm reportedly reduced its US workforce by 27,000 since 2022 while obtaining 25,075 H-1B visas, and yet another eliminated 1,000 jobs in February despite securing 1,137 approvals. In some cases, American workers were even forced to train their foreign replacements under nondisclosure agreements.

Rising Reliance On H-1B Workers

The White House emphasised that these practices have harsh effects on American workers, especially in the tech industry. It pointed out that the percentage of IT workers holding H-1B visas increased from 32 percent in 2003 to over 65 percent in recent years.

At the same time, American graduates in computer science and computer engineering now face an unemployment rate of 6.1 percent and 7.5 percent, respectively, over twice the figure for biology or art history graduates.

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Impact On STEM Careers

During the period 2000-2019, the number of foreign STEM workers in the United States doubled more than once, as compared to a rise of merely 44.5 percent in total STEM employment. Authorities claim that this disparity is deterring young Americans from entering the STEM profession, compromising long-term competitiveness and even endangering national security.

New Fee Structure Announced

In order to stem what it calls "abuse" of the program, the administration has unveiled new steps, among them a USD 100,000 charge for H-1B visas. The White House explained that the charge is intended to increase the cost for firms that are misusing the system, end the undercutting of American wages, and safeguard national security.

The US Citizenship and Immigration Services (USCIS) made it clear that the USD 100,000 requirement is only for new, new petitions, not for already employed workers on existing visas. This, officials explained, would bring relief to thousands of foreign professionals already in the country, including many from India.

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"President Trump is placing increased burdens on companies that wish to utilize the H-1B program in an effort to end the exploitation of the program, prevent the wage-cutting, and safeguard our national security," the White House stated.