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The Status Quo: Why the H-1B System Is Under Fire
The H-1B visa, designed for specialty occupations in tech, engineering, medicine, and beyond, has long been criticized for its lottery-based allocation and potential to suppress wages or sideline U.S. workers. Critics highlight misuse by outsourcing firms, struggles for worker mobility, and systemic flaws favoring large companies over skilled individuals. These concerns are rooted in decades of debate, notably dating back to the American Competitiveness in the 21st Century Act (AC21) reforms and earlier legislation.
High-profile dissenters such as Elon Musk have called the system “broken,” urging reforms like a significant wage hike and annual maintenance fees to deter abuse.
Commerce Secretary Lutnick: The H-1B Is “Terrible” — Reform Incoming
On August 26–27, 2025, U.S. Commerce Secretary Howard Lutnick described the H-1B system as a “scam” that displaces American workers and stated explicitly, “We’re going to change that program because that’s terrible… We’re going to change the green card”
Lutnick’s critique extends to the green card process, emphasizing that average American workers make around $75,000 a year, while green card recipients earn about $66,000—arguing the system attracts the “bottom tier” and not top talent.
Enter the “ Gold Card ”: Merit Meets Money
A flagship proposal emerging from this push is the so-called “Gold Card”, set to offer permanent residency in the U.S. to foreign nationals who invest a substantial amount—reportedly $5 million—highlighting demand already from some 250,000 applicants and promising an influx of up to $1.25 trillion.
This initiative symbolizes a strategic shift: a focus on wealth and merit over random selection, designed to prioritize high-skill, high-investment individuals.
Beyond H-1B: Shifting to Wage- and Merit-Based Selection
The Trump administration’s blueprint includes:
Replacing the lottery system with wage-based selection, prioritizing employers offering higher salaries.
Aligning green card eligibility to merit, potentially easing lengthy backlogs and per-country quotas.
Advocacy groups and experts have long supported similar reform paths:
Fairness for High-Skilled Immigrants Act (H.R.6542) would eliminate per-country limits, raise minimum wages, and curb outsourcing abuses.
The RAISE Act proposes a points-based system rewarding wages, English fluency, STEM education, and offers no country caps.
Reform champions like Compete America push for market-driven visa caps and expedited green card access for advanced-degree holders.
Impact on Indian Professionals and Families
Indian nationals––the largest group of H-1B recipients—could be significantly affected:
Shorter green card waits if per-country caps are removed, reducing decades-long backlogs.
However, wage thresholds and investor-focused routes may disadvantage entry-level workers or those in mid-tier positions.
Age-out risks, previously highlighted when H-1B dependents lose status after turning 21, may get mitigated under broad reforms or policies easing dependent status.
A Turn in U.S. Immigration Philosophy
This reform drive reflects a deep change in the U.S. immigration narrative:
From random lottery and family-based allocations, to a strategic, economically-rewarding meritocracy.
Critics argue these reforms could restrict access for lower-wage workers or be tilted towards the affluent; while supporters see them as aligning immigration with U.S. interests and labor market protection.
Key pending moves include:
Details and timelines for wage-based H-1B reform.
Legislative traction for removing green card quotas.
Definition and rollout strategy for the “Gold Card.”
Implementation will reveal whether the policy centers opportunity around skill—or capital.
[Newsroom staff written original, where key claims or facts are used, I’ve referenced the original sources (like
NDTV,
The Economic Time,
The Times of India, Reuters, FT, etc.) transparently.]
