The visa that ate America’s tech jobs | Blaze Media

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Last month, Sen. Jim Banks (R-Ind.) introduced the American Tech Workforce Act — legislation aimed at curbing abuses in the H-1B visa program and protecting American workers. One key provision would restrict remote work by foreign nationals employed in the United States under H-1B visas.

Yes, you read that right. Foreign workers can enter the country and “work remotely,” often from locations nowhere near the companies that hired them. A foreign national can take a tech job with a firm in San Francisco or Dallas, then live and work from Peoria or Plattsburgh. The arrangement makes little sense — unless your goal is to undercut American wages.

Congress should demand that US companies use remote work to employ Americans — not to offshore jobs inside our own borders.

The H-1B program was sold to Americans as a way to fill gaps in “specialty occupations” that supposedly lacked qualified domestic talent. In practice, it became a pipeline for cheap, compliant foreign labor. Vague definitions of “specialty occupation” and toothless wage protections made it easy for corporations to game the system and drive down costs.

Workers from India, China, and the Philippines accept lower pay for two simple reasons. First, they see the H-1B as a path to permanent residence and eventual citizenship. Many arrive and immediately ask their employers to petition for green cards. They believe that if they keep quiet and work long hours for less money, they’ll earn the right to stay.

Second, even when underpaid by American standards, they make far more than they could at home. A senior computer engineer in India earns roughly $16,000 to $28,000 per year. In the United States, even a low-paid engineer makes about $58,000. The math works for them — but not for American graduates struggling to enter the same field.

Depressing wages, rewarding compliance

The results have been devastating for American STEM professionals. The National Bureau of Economic Research found that between 1994 and 2001, the flood of foreign tech workers suppressed wages for U.S. computer scientists by as much as 5% and reduced domestic employment in the field by up to 10%.

And because so many H-1B workers hope for green cards, they rarely complain about long hours, weekends, or holidays. Employers know it. The system rewards docility. Today, about 19% of the STEM workforce is foreign-born — higher than their share of the total U.S. workforce. Cheap, compliant labor is now baked into the model, while American graduates are being priced out.

The remote work loophole

If companies truly wanted to cut costs, they could use remote work to hire American workers from lower-cost regions. A Boston tech firm can employ skilled programmers in West Virginia or Alabama without having to build new offices. Everyone wins: The company saves money, the workers get good jobs, and local economies benefit.

So why import foreign workers for jobs that can be done anywhere with a Wi-Fi signal? The answer is simple — because they can. Without limits on remote work for H-1Bs, corporations will exploit the system further, hiring foreign workers who are cheaper still. An Indian programmer working remotely from South Carolina costs less than an American one, even after relocation.

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Photo Illustration by Manish Rajput/SOPA Images/LightRocket via Getty Images

America First means Americans first

The H-1B program has always benefited foreign nationals and corporate bottom lines at the expense of American citizens. It’s long past time for Congress to reverse that and adopt an America First position to protect U.S. tech workers.

Lawmakers should pass the American Tech Workforce Act as a first step. But reform shouldn’t stop there. They should demand that U.S. companies use remote work to employ Americans — not to offshore jobs inside our own borders.

If tech firms want to save money, they can hire young American graduates eager to work. What they shouldn’t be allowed to do is import cheaper labor under a visa meant for skills we already have. Remote work should expand opportunities for citizens, not serve as another back door for replacing them.