USA
JD Vance Challenges H-1B System, Says Foreign Workers Earn Less Than Americans: JD Vance Says H-1B Workers Earn $20,000 Less Than Americans, Calls for Crackdown on Visa Abuse:U.S. Vice President JD Vance has sharply criticized the use of the H-1B visa program, arguing that some companies use foreign workers to reduce labor costs and replace American employees.
In remarks highlighted by Vance on October 8, he cited data that he said showed H-1B workers earning about $20,000 less than American citizens in comparable positions. He further claimed that workers brought to the United States through foreign outsourcing companies earn approximately $48,000 less than American workers in similar jobs.
Vance argued that the wage differences demonstrate what he described as an incentive for corporations to use foreign labor to reduce payroll costs.
“If you are working as an H-1B visa in the United States of America, you’re earning $20,000 less than an American citizen hired in the same position,” Vance said. He also claimed that workers employed through foreign outsourcing firms were earning substantially less than comparable American employees.
Microsoft, Adobe and major IT firms targeted
Vance’s comments came as the Trump administration announced a major action involving the Permanent Labor Certification (PERM) program, a key pathway through which employers sponsor foreign workers for employment-based green cards.
The Labor Department said Microsoft, Adobe and major IT outsourcing companies including Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini would be suspended from submitting new PERM applications and processing pending applications amid federal investigations.
Vance specifically criticized Microsoft, alleging that the company laid off approximately 6,000 American workers while benefiting from thousands of H-1B visas and nearly 3,000 green cards. He argued that companies should not reduce their American workforce while simultaneously seeking foreign workers.
“Our message to Microsoft is: you’re a great American company, but you’ve got to hire great American workers,” Vance said.
Administration focuses on American wages
Labor Secretary Keith Sonderling said the companies affected by the action had collectively requested nearly 3 million foreign workers since 2009, with more than 230,000 H-1B visa approvals and more than 100,000 permanent labor certifications, according to the administration.
The administration says its objective is to prevent employment-based immigration programs from being used to undercut American wages or displace U.S. workers.
The PERM system generally requires employers seeking employment-based green cards to demonstrate that hiring foreign workers will not adversely affect U.S. workers’ wages and working conditions.
Debate over H-1B program continues
The administration’s position has drawn criticism from immigration advocates and supporters of the H-1B program, who argue that the United States depends on international talent, particularly in technology, science, engineering, research and artificial intelligence.
The National Immigration Forum has argued that the ability to attract highly skilled workers from around the world benefits U.S. innovation and economic competitiveness.
The debate therefore extends beyond wages and outsourcing to a broader question: how should the United States balance protection of domestic employment with the need for highly skilled international talent?
Green-card applications affected, not all H-1B workers
The latest action does not directly cancel existing H-1B visas. Instead, it restricts the affected companies’ participation in the PERM process, potentially disrupting the pathway to permanent residency for foreign employees sponsored by those employers.
The development is particularly significant for the Indian-American and wider Indian expatriate community, as Indian professionals and Indian IT-services companies have historically been among the largest participants in the H-1B system.
Vance has called for Congress to reform the program and close what he considers loopholes that allow companies to use foreign labor to reduce costs. The administration’s latest measures signal that H-1B and employment-based immigration will remain a major area of U.S. labor and immigration policy debate.
