Maricopa Workforce Connections

H-1B Overview

In response to demands from industries that were experiencing skill shortages in areas such as information technology, Congress enacted the Immigration Act of 1990. This act, implemented in 1992, established the H-1B visa category for non-immigrants who sought to work in high skill or specialty occupations, and set annual limits of 65,000 on the number of H-1B visas granted.

In a subsequent effort to help employer’s access skilled foreign workers and compete internationally, Congress enacted the American Competitiveness and Workforce Improvement Act of 1998 (ACWIA 1998). The provisions of ACWIA 1998 created technical skills training grants under the Department of Labor’s Employment and Training Administration. ACWIA 1998 increased the annual limit on H-1B visas temporarily to 115,000 in 1999 and 2000, and to 107,500 in 2001. In addition, a $500 user fee was imposed on employers for H-1B applications. ACWIA authorized the use of 56.3% of the fee to finance the H-1B Technical Skills training Grant Program. Grants funded under ACWIA 1998 had the long-term goal of raising the technical skill levels of American workers in order to fill specialty occupations presently being filled by temporary workers admitted to the United States under the provisions of the H-1B visa.

ACWIA 1998 was later amended by the American Competitiveness in the Twenty-first Century Act of 2000 (ACWIA 2000). ACWIA 2000 increased the temporary cap to 195,000 H-1B visas annually and extended this higher cap until the end of fiscal year 2003. Separate legislation raised the employer H-1B application fee from $500 to $1,000. ACWIA 2000 authorized the use of 55% of the funds generated by these fees to continue the Department of Labors H-1B Technical Skills Training Grant Program through September 30, 2003.

Now for 2004, the maximum number of aliens who can be issued an H-1B visa has declined to 65,000. In January of 2004, the employment and Training Administration (ETA), U.S. Department of Labor (DOL) approved the Maricopa Workforce Connections grant proposal to receive a $3,000,000 Training Grant for providing post-graduate level training for individuals who possess a minimum of 4 years of experience and a bachelor’s degree in one of the following fields: Information Technology, Engineering/Manufacturing, and Bio-Technology. This training will thereby reduce or eliminate the need for future H-1B Visa requests from local companies, and enhance the ability of those trained to compete in a global market.