Trump's New Order Targets Visa Program for Skilled Workers

President Trump hopes to revive the economic populism that helped drive his election campaign, signing an order Tuesday in politically important Wisconsin to tighten rules on technology companies bringing in highly skilled foreign workers.

Trump toured the headquarters of tool manufacturer Snap-on Inc., and then signed an executive order aimed at curbing what his administration says are hiring abuses in a visa program used by U.S. technology companies. Dubbed "Buy American, Hire American," the directive follows a series of recent Trump reversals on economic policies.

The president is targeting the H-1B visa program, which the White House says undercuts U.S. workers by bringing in large numbers of cheaper foreign workers, driving down wages. The tech industry has argued that the H-1B program is needed because it encourages students to stay in the U.S. after getting degrees in high-tech specialties — and companies can't always find enough American workers with the skills they need.

The new order directs U.S. agencies to propose rules to prevent immigration fraud and abuse in the program. They would also be asked to offer changes so that H-1B visas are awarded to the "most-skilled or highest-paid applicants," said administration officials, who spoke only on the condition of anonymity despite the president's frequent criticism of the use of anonymous sources.

Officials said the order also seeks to strengthen requirements that American-made products be used in certain federal construction projects, as well as in various federal grant-funded transportation projects. The Commerce secretary will review how to close loopholes in existing rules and provide recommendations to the president.

While the "Buy American" provisions may run afoul of free-trade agreements, the order specifically asks the secretary to review waivers of these rules in free-trade agreements. The waivers could be renegotiated or revoked.

What is an H1-B visa and how does it work?

The H-1B program is open to a broad range of occupations, including architects, professors and even fashion models. It's meant for jobs requiring specialty skills that cannot be filled by a U.S. worker. Many of these jobs happen to be in tech. According to the Labor Department, the top three H-1B occupations are computer systems analysts, application software developers and computer programmers — and those three account for roughly half of the department's H-1B certifications.

Although the program is capped at 85,000 new H-1B visas each year, more than 100,000 workers are allowed in annually because of exemptions for university-related positions. Recipients can stay up to six years. Demand is usually higher than the cap, so the government holds an annual lottery. This year, the government received nearly 200,000 applications -- though that number marks a large decrease in applications for the first time in years.

Critics say the program has been hijacked by staffing companies that use the visas to recruit foreigners — often from India — who will work for less than Americans. The staffing companies then sell their services to corporate clients. Employers, including Walt Disney World and the University of California, San Francisco, have laid off tech employees and replaced them with H-1B visa holders.

"The H-1B visa program is commonly discussed as being for when employers have a labor shortage," Daniel Costa, director of immigration law and policy research at the Economic Policy Institute, told NPR. "The reality of it is that employers are not required to recruit and try to hire U.S. workers before they hire an H-1B worker. The latest data that I've seen showed that 80 percent of the H-1Bs who were coming in came in below the local average wage."

Potential changes could be administrative or legislative and could include higher fees for the visas, changing the wage scale for the program or other initiatives.

Campaign promises

Trump campaigned on populist promises to stand up to China, which he contended was manipulating its currency and stealing American jobs, and to eliminate the Export-Import Bank, which he billed as wasteful subsidy. Trump reversed himself on both positions in interviews last week.

And while he has long pledged to support American goods and workers, his own business record is mixed. Many Trump-branded products, like clothing, are made overseas. His businesses have also hired foreign workers, including on H2-B visas at his Florida club, according to the Palm Beach Post.

Trump said at one point during the presidential campaign that he supported high-skilled visas, and then said he opposed the program. At one debate, he said: "It's very bad for our workers and it's unfair for our workers. And we should end it."