US Extends Ban on Employment-Based Visas

Former Republican President Donald Trump’s administration banned the issuing of numerous types of non-immigrant work visas, including the H-1B skilled worker visa and those who seek USA’s employment-based immigration permanent residency. The goal of the programme was to prevent foreign workers from snatching American employment amid the current COVID-19 epidemic, which has resulted in a lack of economic possibilities in the United States. Between February and May 2020, the country’s total jobless rate nearly doubled to just over 13%.

What are the H-1B, H-2B, L, and other non-immigrant work visas?

When a person enters the United States on a non-immigrant visa, they must leave the country before the visa expires. It permits you to work for only one employer.

H1B Visa

• It is very popular among Indian IT firms. 
• Issued for a three to a six-year term.

H2B Visa

• It allows firms to recruit foreign employees to come to the United States on a one-time, seasonal, peak-load, or intermittent basis to provide non-agricultural services or labour.

L Visa

• Designed for applicants who already work for a foreign branch of a US-based organisation or who aspire to launch a foreign-based company’s activities in the US.

The main distinction between H1B and H1B1 visas is:

• The H-1B visa allows for “dual intent,” which indicates that a foreign person will be temporarily employed in a professional capacity while simultaneously wanting to move to the United States at a later date. H-1B visa holders can apply for a green card to become permanent residents. It is for those who seek USA’s employment-based immigration permanent residency.
• H1B1 visa applicants, on the other hand, must show that they have no plans to move to the United States and they have no plans to avail USA’s employment-based immigration permanent residency.

The Ban’s Effects

• The Pandemic-induced economic downturn did not result in any significant improvement in the employment situation. Firms that rely on talented foreign nationals in the United States may have been unable to make new employees regardless.
• According to analysts, about 2,199,000 employees from across the world may have been banned from working in the United States.

Why is the H1B Visa Regime being opposed in the United States?

• Rising Unemployment: According to the Trump Administration, the H1B Visa has resulted in the displacement of US workers by foreign workers on H1B visas.
• H1B Visa Misuse: The bulk of the work performed by H1B employers is not truly specialised labour. Despite their lack of expertise, they move on to work for huge IT organisations in the United States and claim USA’s employment-based immigration permanent residency.

What impact would the latest move have on numerous stakeholders?

• Indian IT companies are the primary beneficiaries of the H-1B visa programme. As a result of the Trump Administration’s action, they would be forced to hire US citizens at considerably higher pay, increasing their operational expenses.
• Companies based in the United States, such as Google, have also spoken out against the Trump administration’s decision. Immigration through the H1B visa has led to America’s economic prosperity, making it the world leader in technology, according to US-based companies. As a result, such a step would be counterproductive.
• Indian nationals have fewer job opportunities in the United States: As of April 1, 2020, the United States has received around 2.5 lakh H1B visa applications. 1.84 lakh applications were submitted by Indians alone. As a result, the Trump Administration’s recent action will result in fewer job opportunities for Indian nationals in the United States.
• The new policy will make it more difficult for Indian citizens pursuing higher education in the United States to find work after graduation.

Will this action have an influence on India’s and the United States’ bilateral relations?

• The suspension of non-immigrant work visas is more of a political issue in the United States than an indicator of any mutual issues between India and the United States.
• India and the United States have worldwide strategic cooperation built on democratic ideals and common interests in bilateral, regional, and global challenges. Despite this deep relationship and frantic diplomatic conversations between India and the United States, the Trump administration chose to go forward with the ban.
• Nasscom has been pushing for exemptions for Indian tech employees, claiming that they are “essential workers.”
• The impact would be seen by both Indian and worldwide firms, according to Shivendra Singh, Vice President & Head, Global Trade Development at NASSCOM, and if the US wants to tackle COVID-19 successfully, IT personnel must be excluded from suspension.

Conclusion

The IT industry, as well as lawmakers on both sides of the aisle, have criticised the directive as harmful to the US economy. According to critics, this order has the potential to permanently harm the United States’ status as a magnet for the best and brightest. Employers, families, colleges, hospitals, and communities will be harmed by the visa restriction, which would slow America’s economic recovery. Without highly trained immigrants, the industry would stall, and the economy would deteriorate, delaying the treatment and cure for Covid-19. It would also affect those who seek USA’s employment-based immigration permanent residency and would render many people unemployed.