Trump signed a "Buy American, Hire American" executive order on Tuesday, promising to protect US workers by overhauling the H-1B visa program that is used mainly by Indian engineers and developers.
The order directs agencies to enforce government rules on excluding foreign contractors from bids for government projects.
Trump headed to Kenosha on Tuesday, where he signed the order dubbed "Buy American, Hire American". These sign on executive order is a part of fulfilling his promises which he made in the election campaign a year ago.
But it falls way short of Mr Trump's campaign pledge to end the H-1B visa programme.
The businessman-turned politician signed the order, which is being dubbed the "Buy American, Hire American" executive order, as he visited the global headquarters of tool manufacturing firm Snap-On Inc in Kenosha, Wisconsin.
For now, Indian IT firms are trying to put on a courageous face publicly.
Outsourcing companies such as Tata Consultancy Services, however, are nearly certain to feel the effects of such a move. But an H-1B review is overdue. So any changes are unlikely to have a major impact on small businesses right away.
"It's very hard, either they're not qualified, and one of the big things, it's a seasonal job", Mr. Trump said. It gives another 20,000 visas to graduate student workers. The visas last for three years at a time.
Trump said "no administration has accomplished more in the first 90 days", he said, adding that he was "building on that optimism". The Secretary of Commerce will be tasked with streamlining the existing rules.
"The idea behind the executive order is to make it merit-based, that the really highly skilled people get preference over the cheap labor that goes on", Hira said. This year, 199,000 applications were received, CNN reported. Chuck Grassley, would require companies seeking H-1B visas to first make a good-faith effort to hire Americans, a requirement many companies can dodge under the current system; give the Labor Department more power to investigate and sanction H-1B abuses; and give "the best and brightest" foreign students studying in the USA priority in getting H-1B visas. It urges these departments to propose reforms to ensure H-1B visas are awarded to the most skilled or highest paid applicant, reported Reuters.
The H-1B visa programme allows numerous country's biggest tech firms and other multinationals to bring foreign workers to the United States, but federal bodies will now be instructed to crack down on abuse of the programme. Critics say these undercut unemployed Americans and fill lower-level information technology jobs.
Insofar as H1-B visas were concerned, the cap has remained at 65,000 since December 2004 when the H1-B Visa Reform Act of 2004 was enacted by the US Congress, he noted. More than 15 per cent of Facebook's U.S. employees in 2016 used a temporary work visa, according to a Reuters analysis of United States labour department filings.
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