Thursday, May 28, 2026

It’s Time to End the H-1B Visa Program Entirely

Over 29 years as a practicing engineer and engineering manager in the tech industry, one fact remained clear: there was never a need for the H-1B visa program. It needs to be ended. Not reformed, not tweaked — ended. The program that was sold as a way to bring in “the best and brightest” has instead become a routine tool for wage suppression, career disruption, and displacement of American workers. The human and economic costs far outweigh any claimed benefits.The Numbers Don’t Justify the DamageThe modern H-1B program was launched in 1990 with a 65,000 annual cap. Today, after peaking at nearly 200,000 in the early 90s, it sits at 85,000 new cap-subject visas per year (65,000 regular + 20,000 master’s exemption). The total population of H-1B principals is estimated between 600,000 and 800,000, plus roughly 500,000 H-4 dependents — around 1.2–1.3 million people. Extending beyond those currently in the program to include those who came to the US under the H1 program and have since changed status and remain in the US roughly doubles the number. 
These numbers sit inside a U.S. professional and specialty occupation workforce of roughly 70–75 million. On paper, the numbers don't look huge. Yet the disruption to American careers is massive and recurring. It reaches well beyond the specific number of jobs.What I Saw on the Ground as a ManagerIn nearly three decades of hiring, managing teams, and living through multiple boom-bust cycles, I never encountered a single role that genuinely could not be filled by a qualified U.S. worker. The required attestations of hiring managers were generally no more than thoughtless paperwork theater. Hiring managers would sign off that “no U.S. candidate could fill the role,” while capable American engineers were available — often sitting right in the layoff pool from the previous round, trying to put their lives back together.
H-1B hires did not raise the average skill level of our teams. They were often competent contributors, but generally not standouts who possessed irreplaceable expertise or illusive skills. And on compensation? In practice, their offers aligned with what similarly experienced Americans commanded for direct hire positions. Contractors, or temporary agency employees were paid less, sometimes significantly, and were generally lower skilled, sometimes significantly.The Layoff–Hire Cycle That Harms AmericansThe pattern became predictable:
  1. Boom times → aggressive hiring, including H-1B.
  2. Downturn → mass layoffs hitting mid-career and senior U.S. workers hardest.
  3. Recovery → rebuild with younger, lower-cost talent, frequently through H-1B channels.
Recent years have seen over 100,000 tech layoffs in early 2026 alone, on top of prior waves. Many experienced engineers remain sidelined, underemployed, or forced out of the field. A modest 0.5–1% draw from the professional talent pool (350,000–750,000 people) could easily meet legitimate demand if companies were required to prioritize Americans. Instead, the global pipeline proves too convenient and too cheap.Exemptions for Non-Profits and Higher Education Make It WorseThe problem runs even deeper because of broad cap-exempt status granted to universities, affiliated non-profits, nonprofit research organizations, and government research entities. These employers can hire unlimited H-1B workers outside the annual cap and with lighter oversight.
This exemption floods academic, research, and non-profit labs with foreign talent while thousands of experienced American engineers — many with advanced degrees and proven track records — sit sidelined. These are exactly the kinds of roles that sidelined U.S. workers could pursue: teaching, research, project leadership, and specialized technical positions. Instead of tapping the domestic pool of capable professionals who already understand American institutions and have decades of adaptability, institutions often default to the easier H-1B pipeline. This further shrinks opportunities for experienced Americans and expands the overall H-1B footprint well beyond the official 85,000 cap.Wages, “Skill Gaps,” and Other MythsH-1B workers are paid less: H-1B workers earn roughly 15–16% less than comparable U.S. natives after controlling for education, experience, and location. A large share of petitions are filed at the lowest prevailing wage tiers — often well below local medians for computer and engineering roles, but the numbers are misleading.
These numbers can be confusing because they lump all H-1B holders into the same group, and give the impression that these might be lower skilled jobs Americans don't want. A major factor in this misconception is the use of "body shop" hires. The direct hire H-1B engineer is  paid at the same scale as his similarly skilled US counterpart. Onshore outsourcing firms pay their employees significantly less. They account for about half of the H-1Bs, driving down the average.
Outdated US workers: The “rapid tech change negates the skills of older engineers” argument is a canard. As engineers, adapting to new tools, languages, and methodologies is routine. We’ve done it for decades. The real issues are age discrimination (callback rates plummet after 45–50), recency bias, and corporate preference for cheaper, more malleable hires. Experienced Americans are not obsolete — they’re overlooked.The Case for Ending H-1BThe program’s defenders claim it brings innovation and fills shortages. In practice, it has delivered:
  • Wage stagnation and suppression in key occupations (which is probably a feature to corporate supporters, not a bug)
  • Career volatility for American families
  • Weak labor market testing and enforcement
  • A permanent incentive structure that favors global outsourcing pipelines — including in universities and non-profits — over domestic talent
We do not need this visa category to attract exceptional foreign talent. Outstanding individuals can still come through employment-based green cards, O-1 extraordinary ability visas, or other targeted pathways that emphasize true excellence rather than volume. The H-1B pipeline, with its low wage floors, weak protections, and expansive exemptions, has outlived the claimed usefulness it never lived up to.
After 29 years watching capable American engineers get sidelined cycle after cycle, I am convinced: ending the H-1B program is the cleanest, most honest solution. Force companies and institutions to compete vigorously for U.S. talent. Raise wages where shortages are real. Invest in domestic training and recruitment. Treat experienced American engineers as the valuable resource they are.
The data, the economics, and firsthand observation all point in the same direction. It’s time to shut it down, it's always been time to shut it down.
Endnotes / Sources
  1. H-1B program created by the Immigration Act of 1990; current cap structure (65,000 regular + 20,000 advanced degree exemption) established in 2004.
    https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations/h-1b-cap-season
  2. Estimated active H-1B principals: 600,000–800,000 (2026 estimates).
    https://peterchu.com/blogs/medium-feed/how-many-h1b-visa-holders-in-usa
  3. Broader population including H-4 dependents: ~1.2–1.3 million.
    https://peterchu.com/blogs/medium-feed/how-many-h1b-visa-holders-in-usa
  4. U.S. professional/specialty occupation workforce: ~70–75 million (BLS Management, Professional, and Related Occupations).
    https://www.bls.gov/emp/
  5. H-1B workers earn approximately 15–16% less than comparable U.S. natives (adjusted for education, age, gender, occupation, industry, and location): George J. Borjas, NBER Working Paper 34793 (2026).
    https://www.nber.org/papers/w34793
    https://www.nber.org/system/files/working_papers/w34793/w34793.pdf
  6. Recent tech layoffs (2026): Over 100,000 reported in early/mid-2026.
    (Trackers such as Layoffs.fyi and industry reports)
  7. Cap-exempt employers: Universities, nonprofit research organizations, and affiliated entities are exempt from the annual cap.
  8. https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations/h-1b-cap-season
  9. Annual H-1B approvals (including extensions): Often 350,000–400,000+.
    https://www.pewresearch.org/short-reads/2025/03/04/what-we-know-about-the-us-h-1b-visa-program/
  10. Outsourcing/IT consulting firms dominate new cap-subject approvals.
    USCIS H-1B Employer Data Hub: https://www.uscis.gov/tools/reports-and-studies/h-1b-employer-data-hub

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