H-1B Training Program Loses Funding

During the dot-com boom of the late 1990s, H-1B visas were issued to foreigners in an effort to fill unoccupied technical jobs that were in high demand. H-1B training was there after established to educate Americans to fill these positions, and eliminate the need for H-1B visas. Due to the downturn in the job market that began nearly 3 years ago, the Department of Labor and Bush Administration is likely to drop the H-1B training program as of Fiscal year 2005. According to the Labor Department, the main impetus for shutting down the H-1B Training Program is a change in visa rules that will effectively eliminate its main source of funding. Funding for the H-1B program was generated by a $1,000 fee charged by the federal government to employers every time they hired an H-1B worker. However, when the technology job market turned soft, congress decided to cut back the number of H-1B visas issued from 195,000 to 65,000. In addition, Congress decided to eliminate the fee charged to employers entirely, thus abolishing all funding generated for H-1B training.

For more information, visit the Department of Labor.