Clinton Administration Makes H1B Proposal

(5/13/00) Clinton aide Gene Sperling wrote a letter to Rep. Henry Hyde on Thursday, May 11, to convey a proposal regarding H1B visas, and other immigration issues. The proposal would set the annual limit on H1B visas at 200,000 per year for 2001, 2002, and 2003. It would also greatly increase H1B fees, with proceeds going federal education programs.

Gene Sperling is Assistant to the President for Economic Policy. He wrote the letter to Rep. Henry Hyde (R-IL) on May 11. Rep. Hyde is not sponsoring any H1B legislation. However, the House Judiciary Committee, of which he is the Chairman, is currently in the process of marking up HR 4227.

HR 4227, Technology Worker Temporary Relief Act, bill is sponsored by Rep. Lamar Smith (R-TX), Chairman of the House Immigration Subcommittee. It is also now supported by Rep. Sheila Lee (D-TX), the ranking minority member of the subcommittee.

The Clinton proposal would set the annual limit on H1B visas at 200,000 for the years 2001, 2002, and 2003. Thereafter, it would revert to 65,000.

The bill would also require that 40% of H1B visas in 2001 go to persons with at least a masters degree. This figure would rise to 45% in 2002, and to 50% in 2003.

The bill would also raise the H1B application fee from $500 to $2,000 or $3,000, depending on the employer. The proceeds would fund federal education programs.

		Rep. Lamar Smith (R-TX)

Rep. Smith responded angrily to the letter. "I have never seen a more complete disregard for American workers. The Clinton Administration turned its back on American workers, and pandered to illegal aliens."

"This Administration lost all credibility on high-tech visas when it failed to implement the American worker provisions in the 1998 H-1b law. For them, this is all about politics not American workers or high-tech visas," said Rep. Smith.

At previous events Rep. Smith has complained about the Immigration and Naturalization Service's failure to promulgate regulations are required by the 1998 act, its inability to count the number of H1B visas that it has issued, and its issuance of H1B visas to fraudulent applicants.

Rep. Smith is not alone in condemning the INS. At the House Judiciary Committee mark up session on May 9 Rep. Zoe Lofgren (D-CA) called the INS a "dysfunctional" agency.

In contrast, the Information Technology Association of America (ITAA) praised the Clinton administration proposal. "We are very encouraged by the actions of the President and his Administration today," said Harris Miller, President of the ITAA.

"This proposal recognizes the needs of the New Economy and the intense workforce shortage the high tech industry is currently facing. While we feel that some aspects of the plan should be changed, such as the four to six-fold increase in fees paid by companies, we are confident that the President and Congress can work together in a bi-partisan fashion to create a law that benefits American industry and workers," Miller said.

The Clinton proposal also covers several immigration matters unrelated to H1B visas. It would allow certain immigrants from El Salvador, Guatemala, Honduras and Haiti to change their immigration status.