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Elon Musk softens his stance on ‘H-1B’ visa program, calls for ‘major reforms’

by Rajeev Bansal
January 1, 2025

Tech billionaire Elon Musk, who vowed to “go to great lengths” to defend the H-1B visa program, has softened his stance on the flawed system used to bring skilled foreign workers to the US. Has called for reform.

President-elect Donald Trump has chosen Musk and Indian-American technology entrepreneur Vivek Ramaswamy to lead his Department of Government Efficiency (DOGE). Last week, Musk argued that his tech companies like SpaceX and Tesla needed foreign workers.

“I’m in America with many of the important people who built SpaceX, Tesla, and hundreds of other companies that make America strong because of H-1B,” Musk wrote on ‘X’ last week. “

Musk retracted his earlier statement in response to an ‘X’ user’s post, which said the US should become a destination for the world’s “best talent”, but argued that currently ‘ The ‘H-1B’ system is not the solution.

“This could be easily fixed by significantly increasing the minimum wage and adding the annual cost to maintain the H-1B, which would be comparable to domestic levels,” Musk said in a post on X on Sunday. Recruiting from abroad will become more expensive. I am very clear that this program is flawed and needs major reform.

The ‘H-1B’ visa is a nonimmigrant visa that allows US companies to hire foreign workers in specific occupations requiring theoretical or technical expertise.

Technology companies rely on ‘H-1B’ visas to hire thousands of workers every year from countries like India and China.

The technology industry has long been demanding more ‘H-1B’ visas to attract highly skilled workers to the US.

Musk once relied on the ‘H-1B’ visa and his electric vehicle company Tesla has hired workers using the program. He defended the technology industry’s need to hire foreign workers.

“Anyone who comes to America, no matter what race, religion or nationality, and has worked hard to contribute to this country, I will always respect,” he wrote on X on Dec. 28. America is the land of freedom and opportunity. Fight with all your being to keep it that way.”

Musk’s statement also received support from President-elect Donald Trump, whose first administration banned the program in 2020, saying it allowed businesses to replace Americans with low-wage foreign workers.

However, Trump recently said, “I’ve always liked visas, I’ve always been in favor of visas.” That’s why we have this (H-1B visa).”

Musk has been continuously posting on ‘X’ in favor of the program.

Amid the debate on immigration, many Trump supporters and anti-immigration opponents are pressing for ending the ‘H-1B’ visa program.

The debate started when right-wing influencer Laura Loomer was appointed by Trump as an advisor on artificial intelligence (AI) policy in his upcoming administration. Criticized the selection of American entrepreneur Sriram Krishnan. Krishnan favors the ability to bring more skilled immigrants to the US.

Loomer called it contrary to the “America First policy” and said that all the entrepreneurs associated with Trump are in favor of it (H-1B).

The debate intensified when Ramaswamy criticized American culture, saying that it promotes mediocrity rather than focusing on academic excellence and success based on merit.

 

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