Washington, Dec 6 (NationPress) A prominent US legislator on Friday called on the Trump Administration to enhance federal oversight concerning the corporate utilization of H-1B visas. He expressed concerns that leading American technology firms are dismissing local employees while concurrently hiring thousands of international professionals — a trend that significantly affects Indian engineers, who represent the largest group of H-1B visa recipients.

In a letter addressed to Labour Secretary Lori Chavez-DeRemer, US Citizenship and Immigration Services (USCIS) Director Joseph Edlow, and Attorney General Pam Bondi, Senator Ruben Gallego emphasized that high-skilled immigration should foster economic growth without serving as a means to “undercut or displace US workers.” He raised “important questions” regarding how large corporations are utilizing the program, particularly in light of mass layoffs followed by ongoing H-1B hiring.

“When properly designed, implemented, and enforced, high-skilled immigration programs can drive economic growth, creating lucrative jobs for American workers,” Gallego stated. “However, we must ensure these initiatives do not undermine or replace US employees, especially as the American dream becomes increasingly elusive for the youth.”

Referencing internal data and federal research, Gallego noted that “major technology firms have let go of hundreds of thousands of employees.” Simultaneously, “in fiscal year 2025, these same companies were authorized to recruit over 30,000 international H-1B workers.” He pointed out that unemployment rates among young American tech workers continue to be high, highlighting a contradiction as employers persist in filing visa applications for foreign talent — a situation he believes warrants immediate attention from labor, immigration, and enforcement agencies.

The senator highlighted a significant decline in the representation of younger employees at major US tech companies.

“As of January 2023, employees aged 21 to 25 constituted 15% of the workforce. By July 2025, that percentage plummeted to 6.7%.” He remarked that these statistics indicate the presence of young American workers eager to be trained and fill these positions.

Gallego also pointed out that the challenges facing Generation Z extend beyond the workplace. According to the analysis he referenced, “over 13% of unemployed Americans in July were first-time job seekers or individuals with no previous work experience, predominantly from Gen Z.” He emphasized that this figure represents “the highest percentage since 1988,” illustrating a growing disparity between the aspirations of young workers and the costs associated with achieving them.

Financial burdens on young Americans have intensified, he noted, as the “average student incurs over $30,000” in debt for a bachelor’s degree, home prices have surged by “55.7%” since 2020, and childcare expenses now exceed rent in 17 states, surpassing in-state college tuition in 38. These trends, he warned, exacerbate concerns regarding whether American workers are being overlooked while companies ramp up their recruitment of temporary foreign labor.

Reiterating the original intent of the visa, Gallego asserted: “The H-1B visa program aims to expand the economy and complement the US workforce — not replace it.” He insisted that the program should not enable companies to employ foreign workers while “simultaneously laying off American employees” who possess similar qualifications and training.

Gallego urged the Administration to clarify how it plans to implement Project Firewall, a multi-agency enforcement initiative introduced in September to strengthen scrutiny over H-1B hiring practices. Among the inquiries he raised were how many new investigations the government intends to initiate, whether companies that have terminated US workers will face heightened scrutiny, and how agencies will ensure adherence to regulations mandating employers to prioritize qualified US candidates prior to considering H-1B hires.

He also questioned how the Labour Secretary intends to manage the new requirement to “personally certify the initiation of investigations,” seeking assurances that this process will not introduce “bureaucratic hurdles,” open avenues for “corruption or pay-to-play,” or delay enforcement actions. “We must guarantee that companies utilizing H-1B visas respect the program's intent and do not displace American workers,” he articulated. “By doing so, we can offer economic opportunities for young Americans to realize the American dream.

The emphasis on oversight is particularly significant for India, as Indian nationals constitute the majority of H-1B visa holders in the United States, especially within the technology sector.

Any tightening of regulations or shifts in employer behavior could have direct implications for Indian engineers, STEM graduates, and IT professionals seeking employment with US companies.

This program has long been fundamental to India-US tech collaboration, with Indian firms and American corporations relying on specialized Indian talent to drive innovation and operations. Changes in regulations in Washington are closely monitored in New Delhi and throughout India’s export-driven IT sector, which remains heavily reliant on access to US high-skilled visas.