US Vice President JD Vance has defended the administration's new $100,000 fee on certain H-1B visa petitions, saying the programme should attract highly skilled workers who contribute to the American economy rather than allow companies to hire cheaper foreign workers in place of Americans.
Speaking on the All-In Podcast, Vance said, “The H-1B should not exist to replace American workers with low-wage foreigners. It should exist to enrich the American economy.”
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Vance talked about the H-1B programme and said it is meant for attracting exceptional talent and strengthen the technology sector, rather than allow employers to substitute lower-wage foreign workers for similarly qualified American employees.
Vance illustrated his argument by referring to a hypothetical situation in which a company replaces an American worker earning $60,000 with a foreign worker earning $45,000. He said the visa system should not be used as a mechanism to reduce labour costs at the expense of US workers.
His comments come amid an ongoing debate in the United States over the H-1B programme, which technology companies rely on to recruit specialised workers, including professionals from India. The administration has sought tighter scrutiny of the programme, citing concerns over potential abuse, fraud and the displacement of American workers.
Vance also questioned technology companies that conduct large-scale layoffs of US employees while continuing to petition for foreign workers on the grounds that there are insufficient skilled workers available domestically.
Explaining the administration's decision to pursue changes through executive action, Vance said Congress had lacked the political will to enact legislative reforms addressing what he described as loopholes and fraud within the system.
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The $100,000 fee has raised concerns among employers and prospective H-1B applicants because of the additional financial burden associated with sponsorship. Indian professionals, who represent a significant share of H-1B beneficiaries, have been closely watching the policy changes.
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