Immigration Changes From The White House

President Obama has indicated a desire to act on comprehensive immigration reform this year, and is expected to address the issue publicly very soon.

Two questions arise with regard to a comprehensive immigration reform bill from President Obama:

1.  Will the White House propose a path to citizenship for the 12 million undocumented workers in the U.S.?

2.  Will the White House reform or change H-1B or L-1 business visas?

COMMENTARY

The White House has not given clues or indications in advance on what reforms it will propose.  We have the following statement to go on from the White House.

“President Obama believes that our broken immigration system can only be fixed by putting politics aside and offering a complete solution that secures our border, enforces our laws, and reaffirms our heritage as a nation of immigrants. He believes our immigration policy should be driven by our best judgment of what is in the economic interest of the United States and what is in the best interest of the American worker. President Obama recognizes that an orderly, controlled border and an immigration system designed to meet our economic needs are important pillars of a healthy and robust economy.”

Presidential Candidate Obama apparently had a plan outlined in February 2008:

To read his plan on immigration: 

I tried to click this link.  It is a dead end link.  Therefore, all we can do is speculate at this point.

AMNESTY:

Amnesty to the estimated 12 million undocumented workers is an issue that is really beyond the scope of this newsletter.  Many arguments exist both pro and con for a law creating a path to citizenship or some other immigration benefit for this class of people.

BUSINESS VISAS:

For business visas, the recession has created multiple challenges for foreign professionals.  First, the shrinking economy means that foreign professional have fewer job opportunities.  The shrinking economy has also created a politically charged environment that works against the foreign professional.  Many senators and representatives state publicly that the creation and/or preservation of U.S. jobs is a top priority for them and the country.

The debate on the economic impact of immigrants intensifies during a recession.  H-1B and L-1 visa holders are a specialized category of immigrants.  Only 85,000 new H-1Bs are granted to private industry each year.  The numbers, compared to the U.S. work force are small, but this class of immigrants does make important contributions to the United States.

Positive Effects of the H-1B:

This article focuses on the brain drain effect of losing out on skilled foreign workers.  In a quote, “America’s running some of its best talent out of town on a rail:  Foreign-born employees with temporary work visas.  So says Vivek Wadhwa, a Duke University professor and Harvard University researcher.  The trend spotlights a reverse brain drain that could hurt U.S. business in years to come, hindering innovation and the launch of new companies.”

Also, see the following research:

This new research dispels findings of some other studies that assert H-1B and other foreign workers are paid less than American IT professionals.

A class of workers with higher salaries will, in aggregate, benefit the United States.  This benefit often takes the shape of higher tax revenues for the local and federal government and more spending in the local economies.

What Should the White House propose? Here are my suggestions:

1.  L-1 Visas:  I do not see any pressing needs to change this category.

2.  H-1B Visas:

I would abandon the visa cap (65,000 visas and 20,000 new H-1B visas for foreign workers with a Master’s or higher level degree from a U.S. academic institution).  What purpose does it serve to have such a cap?  If our economy is growing, why limit this category?  H-1B visa holders benefit the economy.  The economy will recover and start growing.  If it is growing, we are hurt in aggregate by having this cap.  For example, if the economy needs 100,000 of these workers, what happens to the 15,000 or more who cannot work here?  They go work for the competition:  Canada, the European Union, China, etc…

Some violations did occur with visa holders.  I do not have a problem with USCIS sending out Requests for Evidence verifying the companies’ finances and checking the applications thoroughly.

The Administration should strive to protect, and not to harm, these important business visa categories.