Readers of the blog know that reform with respect to the EB-5 Immigrant Investor and H-1B visa programs are topics we touch on rather frequently. (Entries can be found HERE and HERE.)
Which is why we find a recent speech by Michigan governor Rick Snyder incredibly positive in terms of bringing attention to what those at the state level are seeing. His remarks are especially relevant to our friends in Troy, Michigan, given the importance of job creation in the state.
In an address last week at Delta College, Snyder said he would petition Homeland Security to make permanent the EB-5 program, which is set to expire in September of 2012. "The EB-5 foreign investor program provides international investors the chance to live here by investing in Michigan's economy and creating job," he said.
EB-5 grants permanent U.S. residence to foreign nationals investing at least $1 million into a business that creates or maintains ten jobs. Other components of the program include a $500,000 category for investment in designated areas with high unemployment.
Snyder also said he will ask Homeland Security to modify the program so that the requirement is five jobs rather than ten. The governor said that "inflexible immigration laws delay foreign investment and impair job growth."
During his remarks Snyder spoke to the need for reform in the H-1B program as well. H-1B is a highly sought-after, but capped, temporary classification for workers in specialty fields.
For Snyder, the current H-1B caps of 65,000 and 20,000 (for those with advanced degrees) are standing in the way of states like Michigan as its businesses attempt to recruit and retain talent.
"These caps are arbitrary and fail to recognize the harm done to local economies when states are forced to send away talent they have spent years developing," Snyder said.
Snyder would like to permanently raise the cap for regular H-1B visas and remove the cap entirely for workers with a Master's degree or higher from an American university.
We think Snyder is definitely on the right track building momentum for adjustments to the E-B5 program. And changes to EB-5 seem more likely right now with higher unemployment impacting public sentiment away from programs like H-1B.
But without a doubt the positions being filled by H-1B visas are those in fields where the U.S. continues to experience extreme demand. The engineering and information technology sectors continue to see low availability when it comes to U.S. workers.
We don't anticipate Congress has an appetite to tackle large change before the next election. But regardless of who wins in November, immigration is going to be a major issue during the next presidential term.
