H-1B visa reforms looming: What is annual cap, and how will it impact Indian professionals?

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President-elect Donald Trump has appointed Indian-American venture capitalist Sriram Krishnan as the White House Office of Science and Technology Policy’s senior policy advisor for artificial intelligence.

H-1B reforms are aiming to eliminate country caps that disadvantage Indian professionals.

Vivek Ramaswamy is also advocating for major reforms to the H-1B visa program while slamming “mediocre” American culture.

Krishnan’s appointment comes as the US administration, current US administration is likely to take a bill that seeks to overturn the country cap for H-1B visas and alter the prospects of highly skilled people who prefer engineering and technologies.

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What about per-annum cap and country cap

The H-1B visa program allows US companies to employ foreign professionals in specialized roles requiring advanced education and training. However, a longstanding policy limits the number of visas allocated in a single year, with 65,000 visas for foreign workers with at least a bachelor’s degree and 20,000 additional visas for foreign workers who hold a master’s degree or higher from a U.S. institution. This cap disproportionately affects Indian professionals, who represent a substantial share of the global tech talent pool.

Notably, unlike green cards, where a maximum of 7% of the total visas can go to applicants from any single country, the H-1B visa does not impose restrictions based on nationality.

Despite the lack of a country cap, workers from India consistently receive the majority of H-1B visas (about 72% in fiscal year 2023).

However, due to the high demand, Indian applicants often face years-long delays, sometimes even 100 years. This inequitable system has created significant frustration among Indian tech professionals and their US employers, who recognize the constraints this policy places on American competitiveness in the global tech industry.

Indian Americans advocating for merit-based reforms

Krishnan has been a vocal proponent of merit-based immigration policies, advocating for reforms that prioritize highly skilled professionals and streamline the green card process.

Under the proposed reform, the per-country cap on H-1B visas would be eliminated. Instead, visas would be distributed based on merit rather than nationality. This change would create a level playing field, reducing wait times for Indian professionals and improving their transition to permanent residency.

Ramaswamy meanwhile stirred the visa debate today after vouching for “merit-based” reform on X (formerly Twitter). “Yup, I’ve long said the current H-1B system is badly broken & needs to be gutted. It shouldn’t use a lottery, it should be based on pure MERIT. It shouldn’t tether workers to just one corporation. Same principles I favour today,” he posted.

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Will this benefit Indians?

Removing the cap would benefit the US tech sector by ensuring a steady influx of elite talent, particularly in fields like artificial intelligence and machine learning.

However, critics caution that reforms must balance attracting foreign talent with protecting domestic jobs. Concerns about the potential misuse of the H-1B system and increased competition in the American labour market remain points of contention. As reports suggest, lifting the cap could provide applicants from high-demand countries like India an equal opportunity to compete.

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