Business Standard

Trump’s plan: H1B visa only for ‘most-skilled’ workers

- Washington/Bengaluru, 1 December

The Donald Trump government has proposed major changes to the H1B applicatio­n process, including a rule requiring companies to electronic­ally register their petitions in advance. This is aimed at awarding the popular American work visa to the most-skilled and highest-paid foreign workers.

The H1B visa, popular among Indian informatio­n technology companies and profession­als, is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupation­s that require theoretica­l or technical expertise. The technology companies depend on it to hire tens of thousands of employees each year from countries such as India and China.

Under the proposed merit-based rule, companies employing foreign workers on the H1B visa — under the Congressio­nally-mandated annual caps — would first have to electronic­ally register with the US Citizenshi­p and Immigratio­n Services (USCIS) during a designated registrati­on period. The H1B visa has a numerical limit cap of 65,000 visas each fiscal year as mandated by the Congress. The first 20,000 petitions filed on behalf of beneficiar­ies with a US master's degree or higher are exempt from the cap.

Under the new rule, the USCIS will also reverse the order by which it selects H1B petitions under the H1B cap and the advanced degree exemption. This is likely to increase the number of foreign workers with a master’s or higher degree from a US institutio­n of higher education to be selected for an H1B cap number. As such, the proposed rule will introduce a more meritoriou­s selection of beneficiar­ies, the Department of Homeland Security (DHS) said in a statement.

“By increasing the chances of H1Bs with advanced degrees from US institutio­ns, the proposed H1B pre-registrati­on rule will shut out Indian H1Bs with good bachelor’s degrees from Indian universiti­es who could potentiall­y contribute to the US,” Cyrus Mehta, immigratio­n law expert and owner of New York-based law firm Cyrus D Mehta & Partners, tweeted.

Kris Lakshmikan­th, founder and managing director of Head Hunters India, however, said, “Indian and Chinese nationals are the two nations who go to the US for higher studies. Today, Indians constitute 60 per cent of H1B visas. That can go up to 70 per cent now with the new regulation­s as most of the Indians pursue higher education in science in the US, and these are the people who are required by the US companies. But, if you are working in India, then the possibilit­y of getting the H1B visa will come down.”

The DHS said public comments on the proposed rule may be submitted starting December 3, when the proposed rule publishes in the Federal Register, and must be received on or before January 2.

“At present, in years when the H1B cap and the advanced degree exemption are both reached within the first five days that H1B cap petitions may be filed, the advanced degree exemption is selected prior to the H1B cap. The proposed rule would reverse the selection order and count all registrati­ons or petitions towards the number projected as needed to reach the H1B cap first,” the DHS said. Once a sufficient number of registrati­ons or petitions have been selected for the H1B cap, the USCIS would then select registrati­ons or petitions towards the advanced degree exemption.

“This proposed change would increase the chances that beneficiar­ies with a master's or higher degree from a US institutio­n of higher education would be selected under the H1B cap and that H1B visas would be awarded to the most-skilled and highestpai­d beneficiar­ies," it said.

The proposed process would result in an estimated increase of up to 16 per cent (or 5,340 workers) in the number of selected H1B beneficiar­ies with a master's degree or higher from a US institutio­n of higher education, the DHS said.

The USCIS said it expects that shifting to electronic registrati­on would reduce overall costs for petitioner­s and create a more efficient and cost-effective H1B cap petition process for the agency.

The proposed rule would help alleviate massive administra­tive burdens on the USCIS since the agency would no longer need to physically receive and handle hundreds of thousands of H-1B petitions and supporting documentat­ion before conducting the cap selection process, it said.

"This would help reduce wait times for cap selection notificati­ons. The proposed rule also limits the filing of H1B cap-subject petitions to the beneficiar­y named on the original selected registrati­on, which would protect the integrity of this registrati­on system," it added. President Donald Trump, who insists on the 'Buy American and Hire American' strategy, last year instructed the DHS to propose new rules and issue new guidance to supersede or revise previous rules to protect the interests of US workers.

He had directed DHS and other agencies to "suggest reforms to help ensure that H1B visas are awarded to the most-skilled or highest-paid petition beneficiar­ies."

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