NEWS CONTACTS: Eric Thomas or Frances Cox 202/822-9491 FOR IMMEDIATE RELEASE July 31, 2006

2007 Cap on Advanced Degree H-1B Visas Reached More Than Two Months Before Start of Fiscal Year

Compete America Urges Congress to Permanently Fix the Visa Program for Highly Educated Workers this Year

Washington, D.C. - The announcement by the U.S. Citizenship and Immigration Service (USCIS) that the 20,000 cap on FY2007 H-1B advanced degree visas for U.S.-educated foreign students has already been reached was cited by Compete America today as further evidence of the urgent need for a permanent fix to the visa system this year. The cap was reached on July 26, but USCIS made the announcement on July 28, making the effective cut-off date retroactive. In May, the overall FY2007 H-1B visa cap was hit, almost five months prior to the start of the fiscal year and the earliest time in which the cap has been reached. With both caps exhausted, U.S employers must now wait more than one year to hire many of the highly educated professionals they need.

"Having the ability to recruit and retain foreign-born talent, particularly after they have received an advanced degree from a U.S. university, is critical to U.S. competitiveness," said Sandy Boyd, National Association of Manufacturers Human Resources Policy Vice President and Compete America Chair. "It is counterproductive to use U.S. resources to educate and train foreign talent and then send these professionals abroad to work and compete against our economy."

In 2004, Congress exempted the 20,000 advanced degree visas from the overall 65,000 H-1B visa cap so that U.S.-educated, foreign-born mathematicians, scientists, doctors and engineers could be retained and benefit the American workforce. Increasingly high demands for H-1B visas have proven the current H-1B allotments to be unrealistic and insufficient.

"It is clear that the supply of H-1B visas is not keeping pace with demand," Boyd continued. "If Congress does not take action this year to permanently fix the problems in the system, U.S. employers will not have access to the highly educated talent they need to keep the economy strong and our nation competitive."

The House and Senate have both introduced the SKIL Bill (S. 2691/H.R. 5744), which would provide the necessary reforms to the H-1B visa system. The comprehensive immigration reform bill that passed the Senate also includes remedies endorsed by Compete America. Other competitiveness bills have also been introduced that would address this critical visa shortage.

"In order to remain competitive in a global market for talent, we need a permanent solution that includes a market-based cap or cap exemptions for U.S.-educated foreign workers earning advanced degrees in key technical fields," explained Lynn Shotwell, Executive Director of the American Council on International Personnel. "Congress must find a way to reform the visa system this year so that the United States can retain top talent and attract highly educated professionals to work and live in this country."

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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