This article looks at how recent moves by the Trump administration to reshape H-1B and OPT visas aim to protect American tech graduates, highlights Skillstorm CEO Justin Vianello’s perspective, and explains why these reforms matter for entry-level hiring and employer behavior.
Justin Vianello supports steps to tighten the H-1B system and says the effects on U.S. college hiring are real and measurable. He warned that one of the “biggest challenges” with the current H1B system is the “impact” on college hiring, particularly with computer science and computer engineering graduates. Vianello added that the unemployment picture for those graduates is worse than average and that the level of joblessness is “concerning”.
Vianello painted a picture of graduates landing roles that don’t match their degrees and being left underemployed. “So that basically means they didn’t need degrees for the jobs that they’re currently in, being significantly under employed,” Vianello said. “How does the H-1B visa program impact that? Well, firstly, rough estimates are that there are about 730,000 H1B holders in the US and about 550,000 dependents. Most of them, in excess of 70% of them, are in IT.”
He argued that visa-driven labor costs tilt hiring decisions away from recent American grads toward cheaper alternatives. Vianello noted that H-1B visa holders are paid “significantly less” than U.S. counterparts in equivalent IT roles, which rewards employers seeking to cut payroll. That wage gap, he said, gives companies a straightforward incentive to favor visa holders over newly minted domestic talent.
Vianello also emphasized that the competition isn’t just H-1B holders but OPT participants and offshoring options as well. “I think it gets a little more broadly than that,” Vianello said.”In addition to competing with H1V visa holders, college graduates, especially in IT, are also competing with OPT visa holders. This is optional practical training, basically an extension of the F1 visa, which is a student visa, which allows you, if you’re a STEM graduate, to work in the U.S. for three years following your graduation.”
He called out the cost advantages that make OPT applicants attractive to employers, especially right out of school. “Now, the OPT visa holders don’t pay Social Security or Medicare taxes, so they’re automatically 15% cheaper, and they are typically paid 42% less than their U S counterparts. So as a college grad, you’re fighting this three-headed monster. You’re graduating with student debt, you’ve got H1B visa holders and OPT Visa holders who have the ability to take your job and cost an employer significantly less, and then you’re competing with the third one which is the ability of an employer to simply offshore that work.”
That squeeze explains why Republican policymakers are pushing tougher rules that reward higher pay and more advanced skills. The administration introduced a steep one-time fee meant to discourage mass use of H-1B slots for low-cost labor, and officials framed the change as a way to force companies to either invest in American workers or pay the government for the privilege of importing cheaper labor. “The whole idea is no more will these Big Tech companies or other big companies train foreign workers. They have to pay the government $100,000, then they have to pay the employee, so it’s just not [economical],” Commerce Secretary Howard Lutnick told reporters on Friday as Trump signed the order.
Business leaders and technologists have argued both sides, and some prominent entrepreneurs have credited H-1B for their own success. “The reason I’m in America along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of H1B,” Elon Musk posted on X last year. Vianello acknowledges that intent but stresses results matter.
“The intention was good around bringing in people with skills and retaining people in the US that are doing skills and are studying in the universities,” Vianello said. “But the outcome to college grads that are competing for those roles has been really bad.” He points to layoffs and simultaneous visa demand as evidence the system is being used for labor arbitrage, not talent shortages.
“In the last 18 months, according to layoffs.fyi, these large companies have laid off 250,000 tech professionals, but at the same time, the cap for H1B visas was secured before the end of 2024 for the entire 2025, which is 85,000 people,” Vianello explained. “So you’re laying off 250,000 US tech workers but you’re applying for the maximum cap that you can for H-1B visa holders, that doesn’t make sense. If there’s a shortage of skills, why are you laying off 250,000 people? So you can see the way it’s structured. It’s being used as a labor arbitrage to bring down these large companies’ tech costs.”
Vianello is clear he supports visas when used to add real talent to the U.S. workforce rather than cut costs at the expense of American grads. “I fully support using visas to attract top-tier technologists to the U.S.—I came here on a Specialty Occupation Visa myself, which required my employer to invest significantly to bring me over,” Vianello said. “What I oppose is the misuse of programs like H-1B and OPT as tools for labor arbitrage, which undercuts entry-level opportunities for U.S. tech graduates and distorts the talent market.”
