Senator Criticizes Work Permits for Foreign Nationals
Senator Chuck Grassley, who leads the Senate Judiciary Committee, has called on Homeland Security Director Christa Noem to halt the issuance of work permits to foreigners, particularly for white-collar positions that could otherwise be filled by American graduates. His comments reflect a growing concern that job opportunities for U.S. graduates are diminishing due to outsourcing. Moreover, the Supreme Court is set to decide on various lawsuits related to these work permit practices.
Grassley stated, “The Department of Homeland Security is granting hundreds of thousands of work approvals to student visa holders in direct violation of the law.” He added concerns about national security, mentioning that foreign students, particularly from China, holding STEM work approvals are in sensitive roles. The FBI has warned that China is involved in “systematic theft of intellectual property,” targeting businesses and universities. In fact, the USCIS Ombudsman has indicated that work permits might be exploited for espionage and technology transfer.
The work permits are being issued through two programs introduced during President George W. Bush’s administration: Optional Practical Training (OPT) and Curricular Practical Training (CPT). While supporters argue these permits serve as merely supplemental education for international students, the reality is that they often enable white-collar immigrants to secure a multitude of jobs, frequently within major corporations.
This system, some argue, effectively sidelines many American graduates, particularly allowing foreign nationals, often from India, to seize entry-level opportunities in Fortune 500 companies. Both OPT and CPT are part of a broader range of visa programs that companies utilize to cut labor costs and boost shareholder profits. The infamous H-1B visa program allows around 750,000 foreign workers into U.S. white-collar roles each year and grants green cards to about 40,000 others, while the less-discussed L-1 visa is often overlooked.
Many foreign workers are now occupying high-level positions, transferring valuable skills and wealth away from American communities. Grassley voiced his fears regarding the job market for young Americans. A Federal Reserve report found that unemployment rates for males aged 22 to 27 are strikingly similar, regardless of their education status. This raises alarms since recent graduates in STEM fields are reported to be facing higher unemployment rates than the general population, which is quite concerning.
The competition posed by foreign graduates has escalated unemployment among college-educated Americans, a situation that seems unfair. Congress has set a cap on employment visas, roughly 70,000 annually, to assure that foreign graduates complement rather than replace U.S. alumni in the labor market.
Despite this, numerous investors and CEOs back these visa programs for their potential to enhance corporate profits by hiring cheaper foreign labor, often leading to jobs being relocated abroad. For instance, savings from reduced payroll can potentially increase stock prices significantly, benefitting executives disproportionately.
Business groups have considerable influence over policy decisions across administrations. The Department of Justice has historically upheld the notion that the Attorney General permits work authorizations for foreigners through various programs; thus, the debate continues. A lawsuit emerged following President Obama’s 2015 decision to issue work permits to spouses of H-1B workers. This change, it seems, was intended to help businesses retain foreign talent.
Interestingly, a Federal Reserve Bank of St. Louis report found that only 52% of university graduates are employed within their first job after graduation. A stunning 45% of these graduates are still unemployed a decade later. One year post-graduation, the employment rate for skilled STEM majors drops below 37%.
Recent data from the DHS indicates that around 400,000 graduates now hold work permits valid for up to three years. A report from New York’s Federal Reserve highlighted that a significant number of skilled U.S. graduates are among the unemployed, with vacancies noted in fields like civil engineering, biochemistry, business, and computer science.
Adam Mitchell, for example, graduated with a computer science degree from Georgia State University and undertook relevant internships, believing he was on a solid path to a promising career. However, seven months into his job search, he had applied for over 100 positions, securing only two interviews and one offer—which he declined. “I’m just looking for something. I don’t know if the tech economy will be the same again,” he remarked, reflecting uncertainty about his prospects.
