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Elon Musk calls for H-1B visa reforms, warns against dismantling program
Tesla CEO Elon Musk criticized the exploitation of the H-1B visa system by outsourcing firms during a podcast interview released Sunday, but cautioned against abolishing the program entirely, arguing it remains vital for U.S. companies to hire skilled foreign workers.
Concerns over visa misuse and declining approvals
Musk, speaking with Indian entrepreneur Nikhil Kamath, acknowledged concerns about the "misuse" of the H-1B visa lottery system, where some firms allegedly submit multiple entries for the same worker or use the visas to hire low-cost contractors instead of specialized talent. "We need to stop the gaming of the system," he stated, emphasizing the need for reform rather than elimination.
Recent data from the National Foundation for American Policy (NFAP) reveals a sharp decline in H-1B approvals for Indian outsourcing companies. In the current fiscal year, the top seven Indian firms secured only 4,573 initial employment petitions-a 70% drop from 2015 and 37% fewer than in 2024. The NFAP report warned that President Donald Trump's policies could further increase denial rates, complicating hiring for employers.
Trump's $100,000 visa fee and tariff policies under scrutiny
In September, the Trump administration introduced a $100,000 fee for H-1B visa applicants, raising concerns among Indian workers and businesses. Musk also addressed Trump's reliance on tariffs, which he described as market-distorting. "I've tried unsuccessfully to dissuade him," Musk said, noting the president's affinity for tariffs despite their economic drawbacks.
The U.S. recently imposed 50% tariffs on certain Indian goods, including a 25% penalty on Russian oil purchases. While other nations have secured trade deals with Washington, Indian exports continue to face some of the highest levies globally. Negotiations for a U.S.-India trade agreement are ongoing, with both sides aiming to finalize terms by year's end.
Musk praises Indian talent but urges system integrity
Musk reiterated that the U.S. has "long benefitted" from skilled Indian migrants but stressed the need to preserve the H-1B program's integrity. "I'm certainly not in the school of thought that we should shut down the H-1B program," he said, pushing back against calls from some conservatives to dismantle it. "That would actually be very bad."
"We need to stop the gaming of the system... but shutting it down would be a mistake."
Elon Musk, Tesla CEO
