Elon Musk calls H-1B visa system ‘broken’, urges for major reform

In a previous statement, Musk defended the programme, citing it as a crucial factor in his success with companies like Tesla and SpaceX

SpaceX and Tesla CEO Elon Musk has recently criticized the H-1B visa programme, describing it as “broken” and in need of substantial reform. The tech mogul, who immigrated to the United States from South Africa on an H-1B visa, has proposed significant changes to the system. Musk suggested that a more effective solution would involve raising the minimum salary for visa holders and adding an annual fee to maintain the visa. He argued that this would make it more expensive for companies to hire foreign workers than domestic employees, effectively “fixing” the system.

His remarks come amid ongoing debates over the future of the H-1B programme, which permits US companies to employ foreign workers with specialized skills in fields such as technology and engineering. The programme is heavily utilized by the tech industry, with companies relying on it to fill thousands of roles, particularly from countries like India and China. In 2023, data from the US Citizenship and Immigration Services (USCIS) revealed that Indian nationals received 72.3% of the H-1B visas granted, underscoring the programme’s importance to workers from South Asia. Overall, 755,020 people were admitted to the US on H-1B status last year.

Amid these discussions, President-elect Donald Trump made a surprising public statement in favour of the programme, calling it a “great programme.” This stance marks a shift from his previous administration’s attempts to restrict the H-1B programme, which had raised concerns about it being used to replace American workers with cheaper foreign labour. Trump’s remarks further exposed divisions within his base, with some members of the MAGA movement opposing the programme due to nationalistic sentiments.

Musk’s comments are part of a broader conversation on skilled immigration in the tech industry. In a previous statement, Musk defended the programme, citing it as a crucial factor in his success with companies like Tesla and SpaceX. He reiterated that foreign talent is vital for the growth of major tech companies in the US, a sentiment echoed by other industry leaders advocating for an expansion of the H-1B programme.

The debate gained additional traction when right-wing influencer Laura Loomer criticized Trump’s appointment of Indian-American tech entrepreneur Sriram Krishnan as an adviser on artificial intelligence policy. Loomer, who opposes skilled immigration, accused tech executives of prioritizing self-interest over American workers. This sparked a wider cultural discussion, with Vivek Ramaswamy, another Indian-American tech leader, defending the hiring of foreign-born engineers, while former Republican presidential candidate Nikki Haley countered, emphasizing the value of American workers.