In a baffling move, federal agencies have approved 85,000 foreign white-collar workers under the H-1B visa program—despite stubbornly high unemployment among U.S. college graduates.

At a Glance

• 85,000 H-1B visas approved for fiscal year 2026.
• Critics argue the program displaces qualified American graduates.
• Federal agencies continue using the lottery system with no major reforms.
• Tech giants remain the biggest beneficiaries of foreign skilled labor.
• Debate intensifies over wage suppression and domestic job scarcity.

The H-1B Visa: Double-Edged Sword

Enacted under the Immigration Act of 1990, the H-1B visa was meant to address skill shortages in sectors like technology and engineering. But in 2025, critics question whether true talent gaps exist—or if corporations are simply seeking cheaper foreign labor.

The annual cap is 65,000 visas, with another 20,000 reserved for holders of U.S. advanced degrees—totaling 85,000 spots. Yet many labor advocates argue that this system suppresses wages and prioritizes cost over domestic talent.

Watch a report: H-1B Visa Debate: Are Foreign Workers Taking American Tech Jobs? – PBS News

Power Plays and Growing Discontent

Administered by DHS and U.S. Citizenship and Immigration Services, the program shows no signs of reform—even amid rising graduate unemployment. Labor unions, graduates, and advocacy groups are sounding the alarm, contending that the lottery system allows companies to bypass U.S. applicants in favor of cheaper, visa-holding workers.

Yet big tech firms remain vocal supporters, insisting H-1B access is crucial for innovation and global competitiveness. With the fiscal 2026 lottery now complete, agencies began issuing visas—sparking renewed outrage from critics worried about economic fairness.

The Long-Term Fallout

The short-term effect: 85,000 foreign workers landing high-skilled roles across tech, engineering, and business. But many economists warn of longer-term consequences—namely wage stagnation, reduced opportunities for U.S. graduates, and widened socio-economic gaps.

As policymakers, unions, and business leaders debate possible reforms—like salary-based visa awards or prioritizing domestic applicants—the future of the H-1B program hangs in the balance. Until then, graduates are left wondering if their degrees really pay off in a system that seems tilted against them.