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Several prominent companies in the United States (US), particularly in the tech sector, have been cited as examples of firms that allegedly exploited the H-1B visa program in a bid to reduce labour costs to the detriment of American workers.
According to the recent White House proclamation document from the Trump administration, four companies were cited as examples of using the visa system to replace higher-paid American staff with cheaper foreign labour.
Company-specific allegations
The White House proclamation highlighted several specific cases to illustrate its points, though it did not name the companies directly.
The document cited a software company that approved over 5,000 H-1B workers in a single fiscal year while simultaneously announcing a series of layoffs affecting more than 15,000 employees.
Read also: White House clarifies $100,000 H-1B visa fee as India, Nigeria weigh global talent mobility risks
Another IT firm approved early 1,700 H-1B workers, and reportedly cut 2,400 jobs for Americans in Oregon.
A third company allegedly reduced its American workforce by approximately 27,000 employees since 2022, while being approved for more than 25,000 H-1B workers during the same period.
A fourth company reportedly eliminated 1,000 jobs in February; it was approved for over 1,100 H-1B workers for FY 2025.
These examples, according to the administration, suggest that the H-1B program was not being used to fill genuine skill shortages, but rather as a means to reduce labour costs.
Read also: Trump raises H-1B visa application fee to $100,000
Impact on American workers
The proclamation also detailed the personal toll on American workers, stating that some have been forced to train their foreign replacements as a condition of receiving a severance package.
The document claims that this practice, combined with a significant influx of foreign workers in STEM fields, has suppressed wages and made it more difficult for American college graduates to find jobs.
US government data suggests that the H-1B visa program has been heavily exploited, with statistics showing a significant rise in foreign workers in the technology sector while overall job growth has lagged.
The recent proclamation highlighted the following figures as a key reason for new, tougher visa rules.
Surge in foreign STEM workers
Between 2000 and 2019, the number of foreign STEM (science, technology, engineering, and maths) workers in the US more than doubled, jumping from 1.2 million to nearly 2.5 million.
This rapid increase stands in stark contrast to the 44.5 per cent growth in overall STEM employment during the same period.
According to the data, foreign workers make up a much larger share of the US workforce in certain fields.
For instance, in computer and maths-related occupations, the proportion of foreign workers rose from 17.7 per cent in 2000 to 26.1 per cent in 2019.
The report singles out information technology (IT) firms, accusing them of using the H-1B system to hire lower-paid foreign staff, thereby undercutting American workers.
The figures reveal that the share of IT workers in the H-1B program has soared from 32 per cent in 2003 to an average of over 65 per cent in the last five fiscal years.
Read also: Trump launches $1m “gold card” visa for wealthy foreigners
The practice has created a significant financial incentive for companies. One study found that employers could secure a 36 per cent discount on entry-level tech roles by hiring H-1B visa holders compared to traditional, full-time American workers.
The report claims this has led some firms to close their IT divisions, lay off American staff, and outsource jobs to cheaper foreign labour.
The Trump administration has warned that this abuse of the visa system could harm the US economy and pose a national security threat by discouraging Americans from pursuing careers in science and technology.
These concerns led the government to impose the $100,000 fee on new H-1B visas.
