H-1B Visa Lottery Bids Plummet After U.S. Crackdown on System Abuse

 

Lottery bids for H-1B visas, which allow highly educated workers to work in the U.S., have decreased by nearly 40% this year following a government crackdown on individuals and companies “gaming the system” with multiple applications. This significant drop reflects a successful effort to reduce fraudulent practices and level the playing field for all applicants.

 

The Issue: Gaming the System

In recent years, major technology companies have faced challenges due to massive increases in H-1B visa lottery bids, which left many employees and prospective hires with slim chances of winning the lottery. The U.S. Citizenship and Immigration Services (USCIS) identified likely fraud and abuse, where individuals submitted multiple applications to unfairly increase their chances of selection. In one extreme case, a person submitted bids for 83 job offers in 2022.

 

New Rules and Their Impact

To combat this issue, USCIS implemented a rule change this year allowing each employee only one entry in the lottery, regardless of the number of job offers they received. As a result, the number of entries for this year’s lottery dropped to 470,342, a 38% decrease from 758,994 entries last year. The actual number of workers who applied remained relatively unchanged, indicating a sharp reduction in multiple applications.

 

The Background: H-1B Visa Program

The H-1B visa program, established in 1990, targets individuals with a bachelor’s degree or higher in fields that are hard to fill, particularly in science, technology, engineering, and mathematics (STEM). Critics argue that these visas allow companies to pay lower wages with fewer labor protections. Despite this, H-1B visas remain a crucial tool for companies seeking highly skilled talent from around the world.

 

Top Employers and the Impact of Changes

Infosys, an Indian technology outsourcing firm, topped the list of H-1B employers in 2023, with major tech giants like Amazon, Microsoft, Apple, Meta, and Google also among the top ten. These companies have been pressing for changes to ensure a fairer process, as the previous system hindered their ability to secure necessary talent.

 

Intel Corp., for example, reported in October that its winning rate for H-1B visas had “steadily plummeted,” impacting its efforts to expand semiconductor design and manufacturing in the U.S. The tech industry welcomed the recent changes, hoping for a more equitable distribution of visas.

 

Criticisms and Calls for Further Reform

While many welcomed the changes, critics argue they do not go far enough. The AFL-CIO and other labor groups advocate for comprehensive reforms, such as awarding visas based on wages rather than a random lottery, a change that former President Donald Trump supported during his tenure.

 

The AFL-CIO wrote to USCIS that the new lottery system “includes some steps in the right direction, but falls well short of the comprehensive reforms that are needed.” They emphasize the need for a system that prioritizes higher wages and better protections for workers.

 

Moving Forward: Ensuring Fairness in the H-1B Program

USCIS Director Ur Jaddou highlighted the urgency of addressing the system’s flaws, stating at the South by Southwest festival in Austin, Texas, that ensuring fairness could not wait another year. The agency discovered some companies were collaborating to submit multiple bids for the same applicants, further underscoring the need for reform.

 

Jaddou emphasized the goal of making sure H-1B visas go to those who will use them to benefit the nation. “We want to make sure that it’s in the hands of people who are going to use it and help the nation, and we realized that the gaming of the system was not helpful for anybody,” she said.

 

 

The reduction in H-1B visa lottery bids marks a significant step towards a fairer and more transparent process. While the recent changes have been welcomed, there remains a push for further reforms to ensure the H-1B program meets its original intent of attracting the best and brightest talent to the United States. As the debate continues, it is clear that maintaining the integrity of the H-1B system is crucial for both employers and workers in the highly competitive global tech industry.