U.S. Rep. David Schweikert (R-AZ) recently introduced legislation that looks to reform employment visas.
The Securing Migration, Addressing Reform, and Talent Enhancement and Retention (SMARTER) Act would implement a points-based system that prioritizes workers who best support U.S. economic growth. Further, it aims to help mitigate the nation’s rising federal debt and strengthen the United States’ ability to compete with geopolitical rivals.
Specifically, the SMARTER Act would:
- Replace H-1B visas with a measured, merit-based system that admits only the most valuable applicants;
- Improve labor market conditions for American workers by reducing excess imported labor;
- Support economic growth, technological development, and national security by addressing quantifiable supply shortages by industry;
- Help the U.S. compete against China and other competitors for entrepreneurs, inventors, and other talent; and
- Address demographic headwinds as the ratio of workers to the retirees they support reaches historic lows.
The Congressional Joint Economic Committee (JEC), which Schweikert chairs, estimates that the SMARTER Act would save the federal government approximately $335 billion and increase U.S. GDP by at least $549 billion over the next 10 years.
“Today in the United States, we have the same number of 18-year-olds as we did almost 20 years ago, while the older population is growing exponentially, creating a demographic shift that shrinks the workforce needed to sustain our long-term financial health. If we are serious about tackling our debt, growing our economy, and safeguarding our earned federal benefits, we must cultivate a workforce that continues to compete globally at the highest level, supports our domestic industries, and optimizes our nation’s financial viability,” Schweikert said. “To address our workforce shortages and elevate American productivity while increasing workers’ value, it is imperative to reform policies to prioritize selective, high-skilled, employment-based visas over family-sponsored or diversity migration.”
Earlier this year, the JEC released an issue brief entitled “Young, Talented, and Ready: Pivoting Toward a National Scheme of Points-Based Immigration” and the Immigration Fiscal Impact Calculator, highlighting the economic impacts of skilled labor by industry.
The brief found that immigration is necessary to maintain the growth of the U.S. economy, to mitigate the nation’s increasing federal debt, and to compete with geopolitical rivals. Debt is now over 120 percent of GDP in the U.S., and action must be taken to grow the nation’s GDP without allowing debt to increase even faster. Smarter immigration policies can ameliorate this problem.
It also said that a plurality of lawful permanent residents immigrate to the U.S. through family reunification green cards. This current system distributes visas randomly or by order of application received rather than meritocratically. High-skilled immigration, particularly in underserved or bottlenecked industries, results in more innovation and more economic growth.
It added that the global pool of elite talent is finite, and other countries like China and Canada are also attempting to attract high-skilled immigrants. One new Canadian visa program pulled away 10,000 would-be immigrants to the U.S. within 24 hours of applications opening.
It is imperative to reform immigration policies to prioritize high-skilled, employment-based immigration and limit less productive and more costly forms of immigration like family-sponsored or diversity-based visas, the brief said. This path would better support U.S. industries while minimizing cost to taxpayers and protecting the earnings of American workers.