The United States recently revealed the ambitious America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength (COMPETES) Act of 2022. This comprehensive proposal seeks to revolutionize the prospects for talented individuals around the world through the introduction of a new start-up visa. The major aim of the Act is to bolster supply chains and reignite the country’s economy’s innovation engine, setting it on a stronger footing to outcompete China and the rest of the world in the coming decades.
Bridging the Gap: The COMPETES Act Provisions
A significant amount of funding has been allocated under this Act. A total of USD 52 billion has been set aside to stimulate semiconductor production in the US, while another USD 45 billion will be used for grants and loans to reinforce supply chain resilience and strengthen manufacturing and other programs. This Act also encompasses funding to address social and economic inequality, climate change, and immigration. Specifically, it provides an exemption for STEM (Science, Technology, Engineering, or Mathematics) PhD holders from the green card limit and introduces a new green card category for entrepreneurs.
The Permanent Residency Path
In terms of permanent residency, a Green Card holder refers to an individual granted authorization to live and work indefinitely within the United States. As part of the new bill, USD 600 million per year will be issued to construct manufacturing facilities, aiming to minimize the United States’ reliance on solar components produced in Xinjiang, China.
New Opportunities: The “W” Classification
The COMPETES Act presents a novel “W” classification of non-immigrants. This category is designated for entrepreneurs with an ownership interest in a start-up entity, crucial employees of a start-up entity, and their accompanying spouses and children.
Indian Talent and the COMPETES Act
The implementation of this Act signifies enhanced opportunities for Indian talent and skilled professionals in the US. Every year, a vast majority of H-1B work permits are claimed by Indians and Indian companies. With the new “W” classification, Indian professionals will have an improved chance at securing opportunities provided by the Act.
The Significance of Work Visas
The proliferation of IT revolution combined with the advent of the internet and affordable computers in developing nations like India has led to an increase in the number of individuals willing to work at comparatively lower costs in the US. This development benefits both the employer and the employee, creating a positive symbiosis. The US administration releases a capped number of visas yearly to fulfill the need for highly-skilled yet low-cost workers in IT and related domains. These visas enable companies outside the US to assign employees to work at client sites within America.
Examples of US Work Visas
There are several types of work visas available. Some notable examples include the H-1B Visa, which is popular among Indian IT companies and issued to skilled workers who possess a higher education degree; the H-2B Visa for seasonal workers involved in the landscaping and hospitality sectors; the L-1 Visa, facilitating the transfer of highly skilled employees to the US for up to seven years; the H-4 Visa designed for dependents of H-1B visa holders; and the J-1 Visa intended for students on work-study summer programmes.
