Make immigration policy benefit Americans again

For all the heat generated by the recent discussion among Republicans about H-1B visas, there is much agreement within the conservative coalition on the matter. It shows that the incoming Trump administration has thought these matters through and is prepared to make the immigration system serve Americans once again.

The H-1B visa program was created in 1950 when the United States had a record-low percentage of foreign-born residents. It was designed from the outset to benefit the common good by drawing small numbers of foreign workers needed in various skilled professions. In 1990, the program was reformed, with some occupations being separated from others, and the H-1B program was designed to bring in the most talented scientists, engineers, and entrepreneurs from around the world.

Congress initially set an annual cap for new H-1B visas at 85,000 a year, and that number hasn’t changed. What has changed is that a number of industries have exploited the program by using it to bring in college-educated workers from countries far poorer than the U.S. and pay them far less than domestic college-educated workers. Many of these industries have secured exemptions for their workers from the statutory cap so that in the most recent year available, almost 120,000 new H-1B visas were granted. However, even this number is deceiving, for H-1B visa renewals don’t count against the cap. In total, almost 400,000 visas were granted through the H-1B program in 2023.

The 400,000 visas issued each year do not slake American businesses’ deep thirst for cheap immigrant labor, and applications for the H-1B program always outnumber spots available. Instead of doing something sensible to determine who gets the spots, such as examining the salaries, the Department of Homeland Security holds a lottery. This means companies submit more H-1B applications, essentially buying more lottery tickets. The better a company is at filing applications, the more likely they are to win one. 

Instead of a program that brings in the best and brightest from around the world to benefit the U.S. by delivering exceptional economic growth, the H-1B program has become a way for firms to game the immigration system to lower labor costs by bringing in marginally skilled foreign workers willing to work for less.

According to the most recent DHS report, the median salary for all H-1B visa holders is only $118,000, hardly suggesting exceptional talent. While some H-1B visa holders make millions of dollars, the average salary for a new H-1B visa holder is just $94,000. World-class talent does not command only $94,000 a year.

The first Trump administration understood both the potential of the H-1B program and the reality of the mess it has become. Under Trump, the DHS issued a regulation to assign H-1B visas based on the highest salaries offered, not random chance. This would have ensured that the system brought in only the most skilled immigrants, not gas station shift workers.

Unfortunately, big corporations and open borders advocates sued in federal court to stop Trump’s H-1B regulation. They won on the technicality that the DHS official who promulgated the rule had not been properly confirmed by the Senate. If the Senate does its job and confirms Gov. Kristi Noem (R-SD) as the next DHS secretary, Trump will be able to issue the regulation again.

Congress could also solve the problem by changing the eligibility requirements for H-1B applicants through legislation. Raising the fees associated with the program and setting much higher minimum salaries for applicants would almost certainly be allowed in reconciliation legislation under Senate rules.

Before Trump told reporters he supported Elon Musk and the H-1B program, Musk posted on X in response to criticism that the H-1B program was being abused to reduce U.S. wages, saying, “Easily fixed by raising the minimum salary significantly and adding a yearly cost for maintaining the H-1B making it materially more expensive to hire from overseas than domestically. I’ve been very clear that the program is broken and needs major reform.”

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Musk is right. The H-1B program is broken and needs major reform, as does much of the rest of our immigration system. Fortunately, Trump and his growing team of appointees know that the fundamental purpose of immigration policy should be to promote the success and flourishing of the 335 million people already living in the U.S. It does not exist to benefit the billions who want to come here from around the world at the expense of Americans.

The U.S. is under no obligation to take in any immigrants, but that does not mean the optimal yearly intake is zero. We are a nation of immigrants, and even though we now have a record-high percentage of foreign-born residents, it is to our benefit to take in more. That’s the irreducible principle that should always guide immigration policy: Is it good for Americans? We can and must limit who is let into the country, and the criteria should be based on what benefits the nation and its citizens.