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H-1B Crackdown Targets The Wrong Workers — Could Drive Away Top AI Talent

11:29 PM, 12/05/2025
H-1B Crackdown Targets The Wrong Workers — Could Drive Away Top AI Talent

The H-1B program is under renewed scrutiny as Sen. Ruben Gallego pushes for reforms to curb abuses and the administration considers inquiries involving conservative attorney Harmeet Dhillon. Critics say consulting firms have filled many H-1B slots with lower-paid workers, blocking opportunities for top engineers. A State Department cable advising consulates to probe applicants for alleged participation in "censorship," plus a proposed $100,000 visa fee, have raised concerns that current policy could drive away critical AI talent and harm U.S. growth.

H-1B Reform Debate Heats Up as Critics Warn of Unintended Consequences

As Semafor reported Friday, U.S. Sen. Ruben Gallego (D-Ariz.) is pressing the White House to reform the H-1B program to curb abuses. The administration has signaled openness to changes, and conservative attorney Harmeet Dhillon — known for legal challenges to large tech platforms — is reported to be involved in inquiries into how tech companies use the visa program.

Lawmakers from both parties say the core problem is that many H-1B slots were effectively captured by consulting firms that placed low-paid workers into roles primarily because those candidates would accept lower wages. The commonly held image of H-1B recipients flowing straight into flagship tech companies is incomplete: a substantial share of visa holders have worked in non-tech sectors and in regions outside major innovation hubs, producing maintenance or lower-value software for industries such as financial services.

Why reform matters: Smart changes could help U.S. innovation by freeing visas for highly skilled engineers and researchers — the kind of talent showcased this week at NeurIPS, where many leading AI contributors were born abroad. It is in the national interest to make it easier for U.S. firms to recruit world-class talent while tightening rules to prevent outsourcing firms from importing inexpensive labor that adds little to the innovation economy.

At the same time, some administration moves risk pushing talent away. Reuters reported that a State Department cable instructs consulates to scrutinize H-1B applicants' work histories for any evidence they took part in "censorship" at social media companies and to consider denial on that basis. Critics say the guidance could deter engineers and researchers who fear politicized visa reviews.

"Discouraging foreign technologists from coming to the U.S. would be harmful to long-term competitiveness," said several officials and industry figures who, in some cases, feel constrained from speaking publicly.

Hardline proposals have also emerged. Earlier this year, former acting deputy homeland security official Ken Cuccinelli argued in an opinion piece that Congress should eliminate the H-1B program, calling it a tool that displaces American middle-class workers in favor of cheaper foreign labor. Separately, economists have warned that the administration's proposed $100,000 fee on H-1B visas — if enacted — could reduce U.S. growth by discouraging the flow of human capital that supports AI and other advanced technology investments.

Bottom line: There is bipartisan agreement that the H-1B program needs fixes, but policymakers must balance enforcement against the risk of making the United States less attractive to top technical talent. Careful reform can protect American workers while preserving the country’s leadership in innovation; heavy-handed rules or fees risk the opposite.

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