Donald Trump’s return to the White House marks a new chapter in U.S. politics, with significant implications for various employment and hiring practices. A key area of focus is the H-1B visa program, which allows U.S. companies to tap highly skilled talent from overseas.
During his first term as president, Trump was highly critical of the H-1B program, arguing that it was being misused to replace skilled U.S. workers with cheaper talent from overseas. And though his administration sought to limit the H-1B program, most of those attempts were either overturned by courts or delayed until his term ended.
Changes to the H-1B program could fundamentally alter how organizations attract and manage their employees, affecting thousands of U.S. tech companies. Now, as Trump prepares for a second term in office, the tech industry is left wondering whether his administration will pick up where it left off, or if some newfound allies in Silicon Valley will convince him to take a different approach.
What Is the H-1B Visa Program?
The H-1B visa program enables U.S. employers to hire highly skilled foreign professionals in “specialty occupations,” such as engineering, technology and medicine. The visa allows workers to live and work in the United States for a period of three years, with the possibility of extending the stay up to a total of six years.
Tech companies are among the primary users of the H-1B program, relying on it to fill positions in software development, engineering and data science. The program helps businesses stay competitive and innovative, especially in cutting-edge industries like artificial intelligence and biotechnology, where demand for highly skilled talent far outstrips the domestic supply.
But the program is also highly competitive. The U.S. Citizenship and Immigration Services (USCIS) has received more than 470,000 eligible applications for the 2025 fiscal year, far surpassing the annual cap of 65,000 visas (plus an additional 20,000 for those with advanced degrees from a U.S. university).
And while the H-1B program has certainly helped address U.S. labor shortages, it has also faced a lot of backlash. Critics argue that, instead of bringing the world’s “best and brightest” to work alongside Americans, the system appears to be bringing in cheaper foreign labor to replace American workers outright.
H-1B workers are required to have a bachelor’s degree or higher in their respective field, and they are categorized into one of four wage tiers based on their level of experience. At least 60 percent of H-1B workers are hired at the lowest two tiers, which pay 17 to 34 percent below the local median, according to a 2020 analysis by the Economic Policy Institute. A report by the National Foundation for American Policy, meanwhile, highlights several studies showing H-1B workers’ salaries, which average $118,000, are equal to those of U.S. workers.
Trump’s Record on H-1B Visas
During his 2016 campaign, Trump criticized the H-1B program for being “unfair,” claiming it undercut American workers with cheap labor from overseas and stating that “we should end it.” At that time, Disney was under fire for laying off 250 IT workers and replacing them with H-1B workers employed by HCL, an outsourcing firm. The laid-off workers were forced to train their replacements, who were earning half of their salary and no benefits.
Throughout Trump’s first term, his administration made several attempts to limit the H-1B visa program. Meanwhile, H-1B petition denials skyrocketed. After years in the single digits, the denial rate spiked to 24 percent in 2018 and 21 percent in 2019, according to USCIS data.
In June 2020, the Trump administration took things a step further by suspending the issuance of new H-1B visas amid the economic downturn caused by Covid-19 lockdowns, arguing that U.S. workers should not face excessive competition when job openings are in limited supply.
Later that year, the Department of Labor raised the minimum wage for H-1B workers, claiming employers were using the program to replace U.S. workers with cheaper foreign talent. At the same time, the Department of Homeland Security narrowed the definition of specialty occupations, requiring recipients to hold a degree directly related to their specific field. It also cracked down on consulting firms that assign H-1B employees to work with their clients. The ruling shifted the administrative burdens of the H-1B process onto the clients and limited workers’ residency to one year.
Both of these rules were struck down by a federal judge after two months. Other last-minute efforts to raise H-1B wages and institute a selection process prioritizing higher wage jobs were delayed until Trump left office. Nevertheless, these actions highlight the concerns the first Trump administration had with the H-1B visa program, and provide a glimpse into changes that could be coming in Trump’s second term.
Read More: Builtin