U.S. Commerce Secretary Howard Lutnick Labels H-1B System “Scam”
U.S. Commerce Secretary Howard Lutnick called the current H-1B visa program a “scam” that displaces American workers and said major reforms are underway. He criticized the lottery system and voiced support for shifting to a wage- and merit-based model.
Green Card System Under Scrutiny
Lutnick also condemned the green card issuance process, noting that the average American earns $75,000 a year while the average green card recipient earns only $66,000. He questioned why the system seems to select lower earners and signaled a move toward a more selective framework.
“Gold Card” Residency Proposed
He unveiled plans for a new “Gold Card” that would grant U.S. permanent residency to foreign investors who invest at least $5 million. Demand for this option is reportedly high, with roughly 250,000 prospective applicants expected, potentially generating up to $1.25 trillion in investment.
Merit-Based Reform and Industry Impact
The proposed changes include eliminating the H-1B lottery in favor of a wage-based allocation, prioritizing higher-paid and highly skilled applicants. Analysts warn these reforms could sharply affect Indian professionals, who make up over 70% of H-1B recipients, and may reshape hiring practices in U.S. tech firms.
