WASHINGTON, D.C.—In a development that could impact a key sector of the U.S. production community, the current annual cap on H-1B visas has plummeted from 195,000 in 2002-’03 to 65,000 for the current fiscal year (Oct. 1, ’03-Sept. 30, ’04). Over the years, H-1Bs have been used by assorted high-tech firms—including a number of visual effects and computer animation studios—that are dependent on foreign labor to help offset what they contend is a shortage of highly-qualified American workers.
As earlier reported (SHOOT, 2/28, p. 1), several visual effects studios expressed concern over the prospect of the annual allocation being cut by two-thirds. However, recently released figures show that the demand for H-1Bs has dropped precipitously anyway. According to a report by the Department of Homeland Security’s Office of Immigration Statistics, the number of H-1B visas issued to workers in the technology industry went down nearly 75 percent in ’02-’03 as compared to ’01-’02. This decrease is attributed largely to the downturn in the U.S. economy, which has triggered a significant decline in hiring generally. But if the economy picks up, the pivotal question is whether or not a yearly allocation of 65,000 will meet the needs of the tech sector.
The 195,000 allotment grew out of the Silicon Valley-centered tech boom in the late ’90s. This fueled a vigorous industry lobbying campaign, helping to bring about the passage of a bill—authored by Rep. David Dreier (R-San Dimas, Calif.)—which increased the annual U.S. allocation of H-1Bs from 115,000 to 195,000 for fiscal years ’00-’01, ’01-’02 and ’02-’03. Word at press time was that there’s currently no legislation pending from Dreier’s office—or from any other member of the U.S. Congress—to retain the 195,000 allotment.
A spokesperson for Dreier said it’s her understanding that the industry and other concerned parties are at present looking into the situation to determine if an elevated cap is still justified. There’s a possibility that the issue could be addressed in the House of Representatives later this calendar year. If a new bill eventually surfaces, it would have to be initially put forth before the House’s Judiciary Committee. The current H-1B visa allotment of 65,000 represents a return to the cap level of ’97-’98. (The H-1B annual allocation was increased to the aforementioned 115,000 in ’98.)
Visa-generated funding for programs designed to train American workers for tech sector jobs also expired on Oct. 1. In the big picture, increased visa allocations have been regarded as a short-term solution. Proponents and opponents of the increased visa cap view the long-term solution as education at the grassroots elementary school level on up through high school and advanced training curriculum. The rationale is that over the long haul, education in the arts, sciences and filmmaking will produce a larger talent pool for the tech sector, a prime component of the new millennium job market.
Speculation is that legislators haven’t been quick to embrace a visa bill in today’s political climate. For one, legislation regarding immigration has become a hot-button issue in light of concerns over terrorism. There’s also the uncertainty created by the transition in immigration administration. Earlier this year, the Immigration and Naturalization Service (INS), which issued and administered visas, was effectively dismantled. The INS ceased to exist as a separate entity, with its duties being incorporated into the then newly formed Department of Homeland Security.
Another measure that interests the visual effects industry is a three-year pilot program that expedites the processing of H-1B specialty work visas to bring skilled foreign talent into the country. There’s some question as to if—or for how much longer—the Department of Homeland Security will maintain the program. A number of visual effects/ CG houses have plugged into the program, and offered positive feedback on the quicker turnaround time for H-1Bs. Instead of a normal waiting period that can range from three to six months, the pilot program can process a visa within 15 days for an extra fee of $1,000 per applicant.
