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Trump’s Inner Circle Divided Over H-1B Visas as Tech Allies Clash With MAGA Base

Trump’s Inner Circle Divided Over H-1B Visas as Tech Allies Clash With MAGA Base
Source: AFP
  • PublishedJanuary 17, 2025

A contentious battle over H-1B visas has erupted within the ranks of President-elect Donald Trump’s supporters, exposing a deep rift between his tech industry allies and his core MAGA (Make America Great Again) base just days before his inauguration, Al Jazeera reports.

The conflict centers on the controversial program that allows US companies to hire highly skilled foreign workers.

The dispute intensified when former White House advisor Steve Bannon launched a scathing attack against Elon Musk, accusing him of aiming to establish “techno-feudalism on a global scale.” Bannon’s criticism of the H-1B visa program aligns with other hard-right Trump supporters who view it as a threat to American jobs.

This clash comes as other figures in Trump’s orbit, like entrepreneur Vivek Ramaswamy, have also defended the need for skilled foreign workers. Despite past support, both Musk and Ramaswamy have recently softened their stance on H-1B visas amid the backlash, now stating that the program needs reform. This has prompted questions about the shifting allegiances and priorities within Trump’s inner circle.

What is H-1B Program and Why Is It Dividing Trump’s Base?

The H-1B visa is a temporary, non-immigrant visa that allows US companies to employ foreign workers in specialized occupations requiring at least a bachelor’s degree. While the program has historically been favored by the tech industry, it has faced increasing criticism for potentially displacing American workers.

Trump himself has expressed conflicting views on the program. In 2016, he called it “very, very bad” for American workers and temporarily banned H-1B visas in 2020, before a federal court struck the ban down. However, more recently, Trump has reversed course, calling the program “great” and acknowledging he has “many H-1B visas on his properties.”

This apparent U-turn has fueled tensions between the MAGA base, who view the visas as a threat to American jobs, and tech industry leaders like Musk, who have become influential figures in Trump’s camp. Musk has been a key supporter of Trump, heavily contributing to his campaign and using X (formerly Twitter) to amplify MAGA views.

However, Trump has pushed back on suggestions that Musk wields undue influence, emphasizing that the billionaire will not be “taking the presidency.”

Delicate Balancing Act

Experts note that Trump will need to carefully navigate the complex dynamics between the Silicon Valley elite, who are crucial for his job creation plans, and his MAGA base, from which he derives his political strength.

The H-1B program has a cap of 65,000 visas per fiscal year, decided by a lottery system. The largest beneficiaries of the scheme include tech giants like Amazon, Cognizant, IBM, Microsoft, Google, Meta, as well as Indian companies like Infosys, TCS, and HCL. Notably, Tesla, owned by Elon Musk, has also emerged as a significant beneficiary, securing over 700 new H-1B visas in 2024.

Immigration expert Jeanne Batalova notes that, as of 2019, almost 600,000 highly skilled immigrants worked in the US on H-1B visas.

Critics argue that the program has weak eligibility standards, leading to a flood of applications and a random lottery selection process instead of a merit-based system.

Conflicting Views Fuel Debate

The recent public debate was sparked after far-right activist Laura Loomer criticized Trump’s choice for AI advisor, who has argued that the US needs skilled foreign workers to compete globally.

Musk responded to the criticism by threatening to “go to war” on the issue, citing the importance of the H-1B program for building companies like SpaceX and Tesla.

While Ramaswamy initially hinted at cultural differences being a factor in tech hiring, he later clarified that he believes the H-1B system is “badly broken and should be replaced.”

Bannon, however, has gone further, calling the program a “to tal scam” and advocating for the deportation of H-1B visa holders. He has singled out Musk as being solely focused on becoming a trillionaire.

Batalova notes the debate over H-1B visas reflects the broader struggle between those who see immigration as vital for U.S. economic power and global competitiveness and those who view immigrant workers as a threat to American jobs. She believes the current tensions are fueled by voter discontent with the government’s handling of immigration after the pandemic.

Criticism From Both Sides

Criticism of the H-1B program has not been limited to the right. Democratic Representative Ro Khanna has stated that the program should be reserved for “exceptional talent” and that H-1B holders should not be underpaid. Senator Bernie Sanders has also criticized the program, saying it replaces “good-paying American jobs with low-wage indentured servants from abroad.”

Some 70% of H-1B visa recipients are from India, while 10% are from China. The debate has led some US tech companies to withdraw job offers to Indian workers. However, the Indian government has argued that H-1B visas benefit both countries.

Uncertainty Under Trump’s Second Term

Trump’s overall stance on immigration remains ambiguous. While he has expressed a desire to end birthright citizenship, a policy in place for over 150 years, he has also indicated a willingness to work with Democrats on some immigration issues.

Experts like Ronil Hira note that Trump failed to make any changes to the program in his first term despite promises to do so. The question now remains whether his administration will prioritize appeasing his tech allies or his MAGA base.

 

 

 

 

 

 

 

Written By
Michelle Larsen