Letter to Congress urging support for legislation to exempt Masters and PhD graduates of U.S. universities from the H-1B cap

May 5, 2004

[This Letter Was Sent to All Members of the House and Senate]

Dear:

Compete America is a coalition of more than 200 corporations, universities, research institutions and trade associations committed to ensuring that the United States has the capacity to acquire the talent necessary for continued innovation, job creation and expansion in a worldwide economy. Employers recruit this talent primarily at U.S. colleges and universities. Because of the cap on H-1B visas, employers are unable to hire many foreign nationals graduating with Masters and PhD degrees this year and may not have access to them next year. We urge you to support legislation that would provide an immediate exemption from the H-1B quota to foreign nationals graduating from U.S. universities with Masters and PhD degrees. 

American employers face difficult challenges in getting the right talent for key professional positions.  One of these involves the significant number of foreign nationals earning advanced degrees in key disciplines at U.S. universities.  In some areas of study such as physical sciences and engineering, up to 50 percent of the Masters and PhD degrees awarded in any given year are earned by foreign nationals.   In certain schools and disciplines it can be as high as 90 percent. 

This trend is not new and has been well-documented by numerous studies and reports issued by the federal government, think tanks and other organizations.  The reality is that employers often have little choice but to hire American-educated foreign nationals either as new college hires through on-campus recruiting efforts or later in lateral moves as more experienced professionals. The data on H-1B visa holders confirms these market realities.  Almost half (47%) of H-1B visa holders possess a Masters degree or higher. 

This year, the H-1B quota was exhausted on February 17, 2004 – only four and a half months into the fiscal year.  FY 2005 visa applications for employees who didn’t make the 2004 cut-off can be filed beginning April 1^st but those individuals will not be able to begin work until at least October 1, 2004, a six month wait.  We are extremely concerned that the FY05 quota will be exhausted very quickly – possibly before the beginning of the fiscal year.

This is the fifth time since 1997 that the cap on H-1B visas has been reached before the end of the fiscal year. Employers need some predictability.  Highly educated professionals with specialized skills spur economic growth and create jobs in the United States. Exempting foreign nationals with advanced degrees from U.S. universities from the H-1B cap will help address this pressing challenge.

In past years, many foreign nationals with advanced degrees had little choice but to wait for new H-1B visas to become available, because there was little employment opportunity in their home countries.  That is no longer the case.  Highly educated foreign nationals now have a world of career options.  It is imperative that we work to keep this homegrown talent in the United States instead of going to work for our competitors abroad.

To compete and win in a worldwide market, American employers must have access to the talent they need. The ability to fill highly specialized positions is critical to creating new jobs in the United States, generating economic growth and ensuring the nation’s technological leadership. Although the vast majority of new or vacant positions are being filled with American citizens, a very small portion of these positions are offered to foreign nationals who have specialized skills that are critical to a particular company, medical facility,  research institution, or educational institution.  We urge you to support legislation that would help us keep talent in America by exempting Masters and PhD graduates of U.S. universities from the H-1B cap.

For additional information on American employers’ need for access to U.S. graduates and other talent through the H-1B program, visit www.CompeteAmerica.org or contact Sandra Boyd at 202-637-3133.

Sincerely,