The H-1B system is broken. Here’s how to fix it.

Imagine spending four years studying to become an engineer or computer scientist, believing a STEM degree would guarantee success, only to graduate jobless.

That isn’t a hypothetical. It’s the reality facing thousands of young Americans. According to the Federal Reserve Bank of New York, graduates in physics, computer engineering, and computer science now face some of the highest unemployment rates of any field.

American workers have lost out on jobs given to visa holders and have been forced to work for lower wages, creating a race to the bottom for companies to treat workers as widgets.

America’s flawed H-1B visa system is a major reason why. Established under the Immigration Act of 1990, the H-1B program was intended to let companies hire exceptional foreign specialists only when no qualified Americans were available.

It no longer serves that purpose. Today the H-1B has become the nation’s largest temporary work visa program, with nearly 600,000 foreign workers and 50,000 participating companies. In 2022, the 30 biggest H-1B employers hired more than 34,000 new visa workers while cutting roughly 85,000 existing jobs.

Companies claim they can’t find American STEM talent, yet the numbers tell a different story. In 2023, roughly 134,000 Americans and green card holders earned computer science degrees. That same year, the federal government issued work permits to 110,000 foreign guest workers in computer-related jobs.

In some STEM fields, up to half of new American graduates can’t find work. Tens of thousands of qualified workers remain unemployed while their government floods the market with cheaper, compliant labor.

How companies game the system

The law requires H-1B workers to be paid the same as Americans, but reality tells another story. In 2019, 60% of H-1B positions paid below the median wage for comparable U.S. workers. The visa lottery treats low-paying jobs and high-paying jobs the same, incentivizing companies to pursue cheap labor.

Even the statutory cap on H-1B visas doesn’t stop abuse. A loophole known as Optional Practical Training lets foreign students work in the United States for up to a year after graduation, or three years if they hold a STEM degree.

OPT isn’t authorized by law. It has no cap, no wage floor, and no accountability. Worse, it acts as a corporate subsidy because employers don’t pay payroll taxes on any of the half million foreign workers now in the country under this program.

Time for a real fix

Even the architects of the H-1B system admit it’s broken. Former Connecticut Rep. Bruce Morrison, a Democrat who helped design the visa in 1990, told “60 Minutes” in 2017 that “the H-1B has been hijacked as the main highway to bring people from abroad and displace Americans.”

To build on that effort, I’ve reintroduced the American Tech Workforce Act, which attacks the problem on three fronts.

RELATED: Trump admin announces major H-1B visa abuse investigation, but critics want more

Photo by Andrew Harnik / Contributor via Getty Images

First, it raises the wage floor. Companies that truly need foreign specialists should pay them the same as top American workers, ending the incentive to undercut domestic wages.

Second, it closes the OPT loophole. Foreign students shouldn’t have a back door to replace American graduates. The jobs belong to the people who earned them here.

Finally, my bill would shut down staffing scams. Third-party agencies flood the H-1B lottery with low-quality applications to drive down wages. My bill blocks those schemes and creates a true marketplace where visas go to the highest bidders — boosting both fairness and economic value.

According to the Institute for Progress, these reforms would strengthen the economy by $1.1 trillion over the next decade.

Putting Americans first

The current system rewards corporate exploitation and punishes American ambition. Workers lose jobs, wages stagnate, and graduates who followed every rule are told to wait in line behind foreign contractors. Discrimination based on national origin is already illegal, yet Washington’s visa policies effectively endorse it.

President Trump’s executive order, combined with the American Tech Workforce Act, offers a rare opportunity to restore sanity to the system. We can defend innovation while defending American workers — the people who built this country and still drive its future.

The next generation deserves more than broken promises and outsourced dreams. They deserve a fair shot to work, build, and thrive in the nation they call home.