White House Claims: US firms fired 40,000+ IT workers; Hired H-1B visa holders instead

A statement issued by the White House noted that some companies were granted thousands of H-1B visas while drastically reducing their American workforce. For example, one company received 5,189 H-1B visas but laid off 16,000 American employees.

Washington DC: Recent reports of over 40,000 American workers being laid off in the US have prompted the White House to increase H-1B visa fees. This move comes after concerns were raised about the increasing number of foreign workers in the US technology sector. The US administration believes that several major companies have laid off American tech workers and replaced them with foreign visa holders.

White House Expresses Concern

A statement issued by the White House noted that some companies were granted thousands of H-1B visas while drastically reducing their American workforce. For example, one company received 5,189 H-1B visas but laid off 16,000 American employees. Another company was granted 1,698 visas while cutting 2,400 jobs in Oregon. A third company received 25,075 visas but reduced its American workforce by 27,000 starting in 2022.

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Impact of Foreign Visa Holders on American Jobs

The White House also reported that another company, despite receiving 1,137 H-1B visas for fiscal year 2025, cut 1,000 American jobs in February. American IT workers were reportedly forced to train foreign workers without violating regulations. This situation highlights the challenge of balancing the growing share of foreign workers in the American job market with the loss of jobs for American workers.

Impact of the "America First" Policy

Donald Trump has championed the "America First" slogan since his election campaign. This policy's primary objective is to ensure American citizens have primary access to American resources and jobs. The purpose of increasing H-1B visa fees is to increase the cost of hiring foreign professionals, so that companies can hire more American workers. This will allow American jobs to be prioritized for Americans.

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Implementation and Exemptions of the New Fee

The new H-1B visa fee will take effect on September 21st. However, applications submitted before this date will not be affected. Existing visa holders outside the US will not have to pay any additional fees to re-enter the country. A White House official stated that this fee will only apply to new visa applications, not renewals or existing visas.

This move is being considered a significant effort to improve the US employment market and provide more opportunities for American citizens. However, its impact and the role of foreign professionals will remain under close observation.