U.S. Announces Green Card Reform Amid Criticism of H-1B Visa System

The United States government is considering significant changes to the green card system following sharp criticism of the current H-1B visa program. U.S. Secretary of Commerce, Lutnick, described the H-1B system as “terrible,” highlighting both its inefficiencies and its inability to adequately meet the needs of employers and skilled workers.

Current H-1B Visa System

The H-1B visa program allows U.S. companies to employ foreign workers in specialty occupations. Over the years, the system has faced criticism for its lengthy application processes, strict caps, and delays in granting permanent residency. Lutnick emphasized that the program’s limitations have led to a backlog of approximately 2,50,000 applicants waiting for green cards, impacting both skilled labor availability and economic growth.

Proposed Green Card Reforms

According to Lutnick, the U.S. government is exploring ways to streamline the green card process for H-1B visa holders, potentially reducing wait times and simplifying application procedures. The reforms aim to:

• Expedite permanent residency approvals for highly skilled workers.

• Reduce bureaucratic hurdles and paperwork delays.

• Align visa policy with the economic needs of the country, particularly in sectors like technology, healthcare, and engineering.

Economic Implications

Lutnick highlighted that addressing the green card backlog could potentially generate $1.25 trillion in revenue, benefiting U.S. businesses and strengthening the labor market. By making it easier for skilled immigrants to obtain green cards, companies can fill critical positions faster, enhance productivity, and maintain global competitiveness.

Global and Domestic Response

The announcement has generated significant attention from both domestic stakeholders and international professionals. Employers in the technology and engineering sectors have voiced support for reforms, citing the challenges of retaining foreign talent due to visa uncertainties. Meanwhile, prospective immigrants see this as an opportunity to achieve permanent residency more efficiently, reducing career and personal uncertainties.

Challenges and Considerations

Despite the potential benefits, reforming the green card system involves several challenges:

• Legislative approval and coordination between U.S. agencies.

• Ensuring fairness in distribution and preventing exploitation of the system.

• Balancing domestic employment priorities with the influx of skilled foreign workers.

Lutnick stressed the importance of designing a system that meets U.S. labor demands while providing clear pathways for immigration, reducing frustration among applicants and employers alike.

Long-Term Outlook

If successfully implemented, the green card reforms could redefine U.S. immigration policy for decades, allowing the country to maintain its competitive edge in technology, research, and innovation. By resolving bottlenecks in the H-1B system, the U.S. can continue to attract global talent, ensuring economic growth and addressing skill shortages in critical industries.

The reforms are expected to be rolled out in stages, with priority given to high-demand sectors. Stakeholders are advised to monitor updates from the Department of Commerce and U.S. Citizenship and Immigration Services (USCIS) for further details.

The criticism of the H-1B program and the proposed green card reforms underscore a broader conversation about immigration policy, workforce development, and economic strategy in the United States, signaling a potential transformative shift in the coming years.

The Upcoming IPOs in this week and coming weeks are Amanta Healthcare, Rachit Paints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, .

The Current active IPO are Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering, Shivashrit Foods, Anondita Medicare, Classic Electrodes (India).

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.