NEWS CONTACTS: Eric Thomas (202) 822-9491 FOR IMMEDIATE RELEASE August 12, 2005

2006 H-1B Visa Cap Is Reached Before Start of Fiscal Year

Compete America Cites Need for Further Immigration Reform

Washington, D.C. – The announcement today by the U.S. Bureau of Citizenship and Immigration Services (CIS) that the FY'06 allotment of H-1B visas has already been met was cited by Compete America as evidence that further immigration reform is urgently needed.

"Congress averted a situation that would have slowed our nation's economic recovery last year when it created an exemption for up to 20,000 foreign students with master's degrees or higher granted by U.S. universities from the annual H-1B cap. That was crisis control and we are deeply appreciative, but today's announcement by CIS illustrates that a more fundamental problem exists," said Lynn Shotwell, Executive Director of the American Council on International Personnel. "We're nearly two months away from the start of the fiscal year and we've hit the general H-1B cap. Every indication is we will use up all the 20,000 exemptions by the end of the fall."

H-1B visas allow employers to have access to highly educated foreign professionals who have unique experience in specialized areas and who have at least a bachelor's degree or the equivalent. Many of these foreign nationals are employed in scientific research, medicine, technology and education. Under current law the program is capped at 65,000, down from 195,000 in FY 2003. In November 2004, Congress created an exemption for 20,000 foreign nationals earning advanced degrees from U.S. universities.

The 2005 cap was reached on October 1, 2004 - the first day of the Federal government's new fiscal year. Today's announcement that the H-1B cap for 2006 had been reached indicates acceleration in the demand for highly educated foreign professionals who play an important role in keeping the U.S. economy growing and U.S. jobs in America.

"Highly educated foreign nationals have a long history of contributing to America's economic success. American immigration policy must reflect this fact," said Sandy Boyd, National Association of Manufacturers Human Resources Policy Vice President and Compete America Chair. She stressed, however, that a more fundamental solution is needed. "We need to do more as a nation to encourage American students to pursue degrees in math, science, engineering and technology disciplines. America has a long tradition of growing its own talent while welcoming it from across the globe. Government policy needs to reflect that tradition," she concluded.

Compete America 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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