NEWS CONTACTS: Susan Mora (202) 822-9491 FOR IMMEDIATE RELEASE November 22, 2004

Congressional Action Averts Immediate H-1B Visa Crisis

Exempts Limited Number of Foreign Students with Advanced Degrees from U.S. Universities from the Cap

Washington, D.C. - Compete America today applauded action by Congress to alleviate the H-1B visa crisis. Senate and House negotiators agreed on a provision included in HR 4818, the omnibus spending bill that would exempt up to 20,000 foreign students with Masters degrees or higher granted by U.S. universities from the annual H-1B cap.

H-1B visas allow employers to have access to highly-educated foreign professionals who have unique experience in specialized areas and who have at least a bachelor's degree or the equivalent. Many of these foreign nationals are employed in scientific research, medicine, technology and education. Under current law the program is capped at 65,000, down from 195,000 in FY 2003. The 2005 cap was reached on October 1, 2004 - the very first day of the Federal government's new fiscal year effectively preventing employers from hiring any individuals under the program until next October.

"Allowing highly-educated foreign graduate students receiving their degrees from U.S. universities to stay makes sense," said Sandra Boyd, National Association of Manufacturers Human Resources Policy Vice President and Compete America Chair. "Congress has recognized a real crisis situation and has acted quickly to offer a remedy."

In many critical disciplines, including math, science and engineering, over half of the Masters and PhDs granted by U.S. universities are going to foreign students. "This is a critical talent pool that American taxpayers have helped to educate. It's counterproductive to educate these students and then force them abroad to compete against us," Boyd continued.

We are grateful to Representative Lamar Smith (R-TX) and Senator Saxby Chambliss (R-GA) for their leadership on this issue. We also applaud the efforts of Senators Kennedy and Senator Grassley who were key in ensuring adequate employee protections and reinstatement of the education and training programs."

In addition to allowing more foreign students receiving advanced degrees from U.S. universities to seek H-1B visas, the provisions adopted by Congress would:

• Reinstitute and increase funding for education and training of U.S. workers

• Restore Enforcement Provisions for "H-1B Dependant" Employers

• Impose a new security enhancement fee of $500 to enable the US government to screen foreign nationals more effectively and expedite processing of visas

• Curb abuses in the L visa program · Expand Department of Labor investigative authority.

"Highly educated foreign nationals have a long history of contributing to America's economic success. By moving quickly to remedy the H-1B crisis, Congress has done the right thing to help keep and create jobs in America. The work these individuals do must get done somewhere. It makes sense to enable it to be done here, where it impacts thousands of downstream manufacturing, sales and service jobs," Boyd added.

Boyd also stressed that the remedy is part of a much larger problem. "The U.S. needs to do more to encourage American students to pursue degrees in math, science, engineering, and technology disciplines. Many companies are actively engaged in programs to address this need, but it will take time," she concluded.

Compete America (www.competeamerica.org) is a coalition of more than 200 corporations, universities, research institutions and trade associations concerned about legal, employment-based immigration and committed to ensuring that the United States has the highly educated workforce necessary to ensure continued innovation, job creation and leadership in a worldwide economy.

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