Trump's new H-1B policy fails to help American tech workers without addressing OPT loophole
Trump's new H-1B policy fails to help American tech workers without addressing OPT loopholeThe Trump administration’s new H-1B visa policy, which imposes a $100,000 annual fee for foreign workers seeking entry into the U.S., has sparked confusion and concern, particularly regarding its scope.
As clarified by a U.S. Tech Workers post on X, the proclamation "DOES NOT apply to individuals already in the U.S. on H-1B status, nor does it affect student visa holders on OPT seeking to change their status to H-1B." Instead, the new rule specifically targets individuals outside the U.S. seeking to enter on H-1B visas, with the primary aim of curbing the flow of foreign workers from countries like India, where IT outsourcing companies rely heavily on the program.
The ultimate loophole
One key criticism from U.S. tech workers is that the new H-1B policy doesn't truly help American tech workers or STEM graduates. As one tech worker posted on X, “If the Trump administration truly wants to help American tech workers and STEM graduates, it needs to end the OPT program, which was created entirely through regulation. Otherwise, it isn’t serious about fixing this issue.” The OPT program, critics argue, has allowed foreign students—especially from countries like India—to fill jobs in U.S. tech companies, potentially crowding out American workers.
The Real Target: Indian Students and the OPT Program
The OPT program has been a gateway for many international students, particularly from India, to gain work experience in the U.S. after completing their studies. However, critics contend that the program has inadvertently led to job competition between foreign students and American workers, particularly in the tech sector. As a result, some U.S. workers feel that the OPT program has contributed to wage stagnation and a lack of opportunities for local graduates.
While the H-1B fee hike primarily targets foreign workers entering the U.S., the real impact, according to critics, is that these visa changes don't solve the issue of foreign students entering the workforce under OPT. As one post pointed out, "The OPT program is the real issue here—if the Trump administration is serious about prioritising U.S. workers, it should end this program, which directly impacts the ability of U.S. students to find jobs."
The Impact on Indian IT Outsourcing and U.S. Tech Firms
The post also points out that companies like Google and Microsoft, which utilize L-1 visas or hire from the pool of student visa holders, will likely be unaffected by this new rule. “Companies like Google and Microsoft won’t be affected, because they source their foreign workers through L-1 visas or from those who arrived on student visas,” the user explained.
However, outsourcing giants may face a significant roadblock as their traditional visa routes are disrupted. The new rule could force them to adjust their business models by shifting to other visa options or restructuring their U.S. operations entirely.
A Chilling Effect for Mid-Level H-1B Workers
The post further highlights the risks for mid-level and junior H-1B workers, many of whom could now find themselves “locked in” the U.S. due to the financial burden of the new $100,000 fee. The user wrote, "Even if you already have [an H-1B], it’s very painful to continue being an underpaid serf.” For these workers, traveling abroad for family visits or personal reasons could now become a major risk, with re-entry becoming financially prohibitive, and possibly leading to job loss or visa invalidation.