Commerce Secretary Howard Lutnick has criticized the H-1B visa system that displaces American workers. Lutnick has suggested a new ‘Gold Card’ program as an alternative.
Lutnick Backs Wage-Based H-1B, Questions Green Card Pay
In a post on X on Tuesday, Lutnick labeled the H-1B visa system as a “scam” and stated, “Now is the time to hire American.”
This follows a conversation with Fox News on Monday, where he voiced his concerns about the misuse of the H-1B visa system to replace American job opportunities with foreign workers.
Lutnick affirmed his support for proposals to shift from the current “terrible” lottery-based H-1B allocation to a wage-based system. "We're going to change the green card," he said.
He also raised concerns about the earnings of green card holders, questioning why their average income falls below that of a typical American. "We give green cards – the average American makes $75,000 a year and the average green card recipient $66,000 a year. Why are we doing that? It's like picking the bottom core," questioned the Commerce Secretary.
Trump’s ‘Gold Card' Could Attract Over $1 Trillion In Investment
Lutnick framed this shift as a crucial part of Trump-era immigration policy, stating, “That's why Donald Trump is going to change it – that's where the Gold Card is coming, and with that we're going to start picking the best people.”
The ‘Gold Card' program offers permanent U.S. residency to foreigners who invest at least $5 million. Lutnick noted that demand for the initiative is already strong, with the program potentially drawing $1.25 trillion in investment from around 250,000 prospective applicants.
H-1B visa Debate Heats Up As US leaders Warn Of Job Impact
The H-1B visa program has been a topic of intense debate in US politics. Earlier in August, Marjorie Taylor Greene, a Republican representative, demanded an end to Indian H-1B visas. This was seen as a direct endorsement of President Donald Trump’s call to raise tariffs on India over its Russian oil trade.
Meanwhile, Florida Governor Ron DeSantis echoed Lutnick’s concerns and issued a warning about the H-1B visa program, stating that it could potentially displace American workers in the state.
Vice President JD Vance also criticized Microsoft (NASDAQ:MSFT) and other tech giants for laying off American workers while heavily depending on immigrant labor through the H-1B visa program. There were also reports that companies like OpenAI, Udemy and Instacart have recently run ads in the San Francisco Chronicle seeking immigrant job applicants, directing resumes to their immigration or "global mobility" teams.
READ MORE:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
