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Elon Musk Calls H-1B Visa System “Broken,” Urges Major Reform

Highlights

Elon Musk labels the H-1B visa system as “broken” and in need of “major reform.”
Musk calls for changes like raising the minimum salary for visa holders and introducing an annual cost to maintain the visa.
Musk and Vivek Ramaswamy face criticism for their stance on the H-1B program.
Donald Trump has publicly supported their stance despite opposition.

Elon Musk file photo. (Image credit – Reuters)

Just days after vowing to “go to war” over the H-1B visa program, Elon Musk has labelled the system “broken” and in need of a “major reform.” The tech billionaire voiced his concerns on X (formerly Twitter), advocating for significant changes to the program, which allows skilled foreign workers to enter the United States.

Responding to a user’s post suggesting that the H-1B program isn’t the best way to attract top global talent, Musk said he’s “been very clear” that the system requires reform.

Musk, who himself came to the U.S. from South Africa on an H-1B visa, proposed raising the minimum salary for visa holders and introducing an annual cost to maintain the visa. He argued that these measures would make hiring overseas talent “materially more expensive” than hiring domestically, addressing some of the criticisms aimed at the program.

Easily fixed by raising the minimum salary significantly and adding a yearly cost for maintaining the H1B, making it materially more expensive to hire from overseas than domestically.

I’ve been very clear that the program is broken and needs major reform.

— Elon Musk (@elonmusk) December 29, 2024

Last week, Musk emphasized the importance of attracting elite engineering talent from abroad, saying it’s “essential for America to keep winning.”

Musk and Ramaswamy Face Criticism Over Immigration Stance

Indian-American entrepreneur Vivek Ramaswamy, who shares Musk’s support for the H-1B program, has also drawn criticism, particularly from Donald Trump’s supporters.

Ramaswamy echoed Musk’s sentiments, highlighting what he perceives as a U.S. cultural shift that undervalues excellence. “A culture that celebrates the prom queen over the math olympiad champ… will not produce the best engineers,” he said in a post on X.

The debate over the H-1B program intensified after Indian-American entrepreneur Sriram Krishnan was selected as an adviser on AI policy in Trump’s incoming administration. Critics like right-wing influencer Laura Loomer accused Musk, Ramaswamy, and Krishnan of prioritizing foreign workers over Americans.

Musk, however, didn’t shy away from responding to his critics, warning of a potential “MAGA civil war” over the issue. In one instance, he bluntly told a critic, “I will go to war on this issue.”

Trump Backs H-1B Visas Despite Opposition from Supporters

Amid the ongoing debate, Donald Trump has publicly supported Musk and Ramaswamy’s stance on H-1B visas, even as some of his supporters push for abolishing the program. Speaking to The New York Post, Trump defended the visa system noting its benefits for businesses including his own.

“I have many H-1B visas on my properties. I’ve been a believer in H-1B. I have used it many times. It’s a great program,” Trump said signalling his alignment with Musk and Ramaswamy on the controversial issue.

As the debate continues, Musk’s call for reform highlights the broader challenges surrounding immigration policy and the future of skilled labour in the U.S.

FAQs

Q1. What changes does Elon Musk propose for the H-1B visa system?

Answer. Elon Musk proposes raising the minimum salary for visa holders and introducing an annual cost to maintain the visa to make hiring overseas talent more expensive than hiring domestically.

Q2. How did Donald Trump respond to criticisms regarding the H-1B visa program?

Answer. Donald Trump publicly supported the H-1B visa program, stating its benefits for businesses, including his own and noting that he has used the program many times.

Q3. What is the broader challenge highlighted by the debate over the H-1B program?

Answer. The debate over the H-1B program highlights broader challenges in U.S. immigration policy and the future of skilled labour with Elon Musk warning of a potential “MAGA civil war” over the issue.