Trump Cracks Down on Visa Program That Feeds Silicon Valley

Trump Cracks Down on Visa Program That Feeds Silicon Valley

The U.S. administration began to deliver on President Donald Trump’s campaign promise to crack down on a work visa program that channels thousands of skilled overseas workers to companies across the technology industry, according to Bloomberg.

Fed up with a program it says favors foreign workers at the expense of Americans, the Trump administration rolled out a trio of policy shifts. The U.S. Citizenship and Immigration Services agency on Friday made it harder for companies to bring overseas tech workers to the U.S. using the H-1B work visa. On Monday, the agency issued a memo laying out new measures to combat what it called "fraud and abuse" in the program. The Justice Department also warned employers applying for the visas not to discriminate against U.S. workers.

Trump campaigned on a promise to overhaul the immigration system, calling for companies to hire more Americans instead of outsourcing jobs to countries with cheaper labor or bringing in lower-paid foreign workers. Silicon Valley’s biggest tech companies, many of which were founded or run by immigrants, depend on H-1Bs and say efforts to thwart immigration threaten innovation, recruitment and startup formation. Trump’s executive orders restricting travel from a handful of Muslim-majority nations led to unprecedented opposition from the industry.

But there’s also broad recognition that reform is needed, given several high-profile examples where American employees have been replaced by lower-paid foreign workers through the program. Advocates for immigrants’ rights also argue H-1B workers are easily exploited because their legal status is tied to a particular employer. The Economic Policy Institute estimated there were about 460,000 people working on H-1B visas in 2013.

The new guidelines require additional information for computer programmers applying for H-1B visas to prove the jobs are complicated and require more advanced knowledge and experience. It’s effective immediately, so it will change how companies apply for the visas in an annual lottery process. The changes don’t explicitly prohibit applications for a specific type of job. Instead, they bring more scrutiny to those for computer programmers doing the simplest jobs.

Computer programmers made up about 12 percent of all H-1B applications certified by the Department of Labor in 2015. Of those, 41 percent were for positions at the lowest wage level, defined as jobs requiring people to perform routine tasks that require them to exercise little judgment on their own. The guidelines refer specifically to entry-level computer programmers, which the U.S. Department of Labor defines as those who write and test code to allow computer applications and software to work properly.