Letter to Michael Chertoff, Secretary of the Department of Homeland Security, Re: Update on H-1B Reforms by Federal Government

Letter

Letter to Michael Chertoff, Secretary of the Department of Homeland Security, Re: Update on H-1B Reforms by Federal Government

GRASSLEY REQUESTS UPDATE ON H-1B REFORMS BY FEDERAL GOVERNMENT

Senator Chuck Grassley today asked Homeland Security Secretary Michael Chertoff what progress has been made toward the Department's reform of the H-1B visa program.

In August, the administration announced a series of reforms to address border security and other immigration difficulties. Specifically, Chertoff and Commerce Secretary Carlos Gutierrez announced that "the Department of Homeland Security and the Department of Labor will study and report on potential administrative reforms to visa programs for highly skilled workers."

"Despite continued fraud and abuse in the H-1B program, I have yet to see one thing from the administration to address the problem," Grassley said. "Everyday we're learning more and more, but it appears that most H-1B visas are going to foreign based companies. U.S. businesses that need highly skilled workers are getting the short end of the stick."

Grassley has been working to overhaul the H-1B visa program and to close loopholes that employers have been exploiting. He introduced a comprehensive H-1B and L visa reform bill last year with Senator Dick Durbin that would give priority to American workers and crack down on unscrupulous employers who deprive qualified Americans of high-skill jobs.

Here is a copy of the text of Grassley's letter.

March 10, 2008

The Honorable Michael Chertoff
Secretary
Department of Homeland Security
Washington, D.C. 20528

Dear Secretary Chertoff:

Last August, the Administration promised reforms to improve the current immigration system, including in the highly-skilled H-1B visa program. I have yet to see progress on this issue. I'm writing to encourage you to be true to your word, and make any possible changes to the visa program so that taxpayers, businesses, and workers can better benefit.

The H-1B visa program was created to serve American employers who need high-tech workers. It was created to fill a void in the labor force. The visa holders were intended to fill jobs for a temporary amount of time while the country invested in American workers to pick up the skills needed. The program may be beneficial to some businesses, but it's even better for companies based outside the . The fact is most H-1B visas are going to foreign based companies. businesses that need highly skilled workers are getting the short end of the stick. Americans are seeing ruthless tactics by some companies to bring in foreign workers, pay them less, and increase their bottom line. Let me share some examples.

In 2005, a man was charged with fraud and misuse of visas, money laundering and mail fraud for his participation in a multi-state scam to smuggle Indian and Pakistani nationals into the with fraudulently obtained H-1B visas. The man created fictitious companies, often renting only a cubicle simply to have a mailing address. He fabricated tax returns, and submitted over 1,000 false visa petitions.

Another man pled guilty in 2006 to charges of fraud and conspiracy. This man, an attorney, charged foreign nationals thousands of dollars to fraudulently obtain H-1B visas. He provided false documents to substantiate the H-1B petitions.

Last November, I wrote a letter to you and Secretary Rice about another major fraud case in Atlanta, . This case brought to light the method some individuals will use to bring in foreign workers. The indictment alleged that Suren Agadzhanov and 11 other individuals fabricated petitions and sold B-1, B-2, H-1 and L-1 visas to hundreds of foreign aliens using shell companies and false employer names on visa applications.

The Programmer's Guild, a group representing U.S. worker interests, filed over 300 discrimination complaints in the first half of 2006 against companies who posted "H-1B visa holders only" ads on job boards. It's obvious that they are targeting foreign workers and undermining the system by bypassing the American worker.

An Iowan has shared copies of emails showing how he's often bombarded with requests by companies who want to lease their H-1B workers to him. There are companies with H-1B workers who are "on the bench" -- meaning they're ready to be deployed to a project. Hundreds of foreign workers are standing by, waiting for work. Some call these H-1B "factory firms." My constituent even said one company went so far to require him to sign a memorandum of understanding that helps the H-1B "factory firm" justify to the federal government that they have adequate business opportunity that requires additional visa holders. It's a complete falsification of the market justification for additional H-1B workers.

These firms are making a commodity out of H-1B workers. They have individuals with visas, but lack the work for them to do. It's supposed to be the other way around. There should be a need, first and foremost. Then, we allow foreign workers to fill the void and do the jobs temporarily.

While the H-1B visa program is in need of statutory changes, the program would benefit from administrative changes. It could also benefit from increased oversight and enforcement from your Department.

I hope you will roll out changes for this highly-skilled visa program. I encourage you to review legislation proposed by Senator Durbin and me (S. 1035), and assess how your Department can use existing authority to institute positive changes for 's high tech industry and highly skilled workers. Reforms to the program will also surely benefit the taxpayer.

I look forward to hearing more about potential reforms to the H-1B visa program in the weeks and months ahead.

Sincerely,

Charles E. Grassley
United States Senator

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