An image illustrates why US tech job losses are prompting calls for a $100,000 H-1B visa fee (AI Image).
The recent wave of job cuts across the US technology sector has intensified calls for a steep $100,000 fee on every H-1B visa granted to skilled foreign workers. This significant proposed increase stems from mounting apprehension that the existing H-1B visa framework is inadvertently pushing American tech talent, particularly recent graduates and those in coding and support functions, out of the workforce.
Kevin Lynn, head of the Institute for Sound Public Policy, a group pushing for tighter regulations on foreign labor, observed that the issue has gained considerable momentum after the surge in tech sector layoffs. “Our voices are being heard,” Lynn stated, indicating that this topic is now resonating strongly with both lawmakers and the general public.
Understanding the Link Between Tech Layoffs and H-1B Visas
Initially, the H-1B visa program was established to assist US employers in filling roles demanding specialized skills when domestic talent was scarce. However, federal statistics reveal a different picture: almost two-thirds of H-1B applications approved last year were for computer-related positions, with a median salary just over $100,000.
Stephen Schutt, a software developer working alongside Lynn, labeled the current situation an abuse of the system. He expressed strong concerns, saying, “We observe how every aspect is being misused, posing a significant risk to the entire framework. If this trend persists, there’s a genuine possibility that native-born Americans will struggle to secure employment.”
Census data indicates that approximately one in five of the 2.3 million software developers in the US are foreign-born – a considerable percentage given their influence on the job market. During the booming tech era, the presence of foreign workers was largely overlooked. However, the mass layoffs of recent years, impacting tens of thousands, have abruptly thrust this issue into public debate.
How a Shifting Job Market is Gaining Political Momentum
Prior to the recent wave of tech layoffs, Lynn and his advocacy organization found it challenging to attract significant public attention. Their initiatives, such as public transport advertisements in San Francisco and campaigns against outsourcing tech jobs at the Tennessee Valley Authority, failed to gain much traction. The issue largely went unnoticed, even during President Trump’s first term.
The landscape shifted post-election, with activists like Laura Loomer, a right-wing advocate aligning with President Trump’s nationalist policies, significantly boosting the issue’s visibility. Lynn attributes this rising political interest to the weakening job market. He recounted, “In August, when legislators returned to their districts during recess, multiple individuals informed me that their constituents were questioning, ‘Why can’t my child find a job? And why are there so many individuals from India working here?’”
Scrutiny on Employers’ H-1B Visa Practices
Many experts contend that numerous employers are utilizing the H-1B program not for highly specialized skills, but rather for more fundamental coding and technical support functions. Kirk Doran, an economist at the University of Notre Dame, highlighted that the majority of H-1B visa holders are engaged in routine tasks, not advanced technical work—a perspective echoed by other economists.
The program’s deficiencies also extend to the Permanent Labor Certification (PERM) process, which allows employers to sponsor foreign workers for green cards. Critics allege that companies frequently advertise positions they have no genuine intention of filling with American applicants. This has led to federal investigations and lawsuits against several prominent companies, including Facebook and Apple, regarding these hiring practices.
Personal Stories from Displaced American Workers
Numerous US tech workers who have experienced layoffs share accounts of being replaced or disadvantaged by H-1B visa holders. For instance, an anonymous user interface designer recounted the dissolution of his department in 2024, at the same time his employer was actively pursuing a dozen H-1B visas for comparable positions. Similarly, a machine learning engineer detailed experiencing multiple layoffs after companies hired H-1B contractors to handle routine assignments.
The H-1B Debate Advances Amidst Evolving Economic Landscape
While economists generally agree that the H-1B program can offer advantages to the overall US economy, the escalating tech unemployment rate and heightened job market competition have propelled this issue into a national discussion. Notably, President Trump recently declared a $100,000 fee on each H-1B visa for for-profit businesses, intending to curb the over-reliance on foreign workers for more standard roles.
This ongoing debate navigates intricate themes of globalization, outsourcing, and immigration policy. As Kevin Lynn eloquently summarized, “Globalisation is the trunk of the tree, and offshoring, outsourcing, H-1Bs are the branches,” illustrating how these elements are interconnected.