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California's tech titans say H-1B visas are vital. Will Trump defy MAGA and support them?

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California's tech titans say H-1B visas are vital. Will Trump defy MAGA and support them?

Of all the rich and powerful people cozying up to President-elect Donald Trump, few have rushed to Mar-a-Lago faster than the crowned heads of big tech, including California’s own chiefs of Google and Meta.

And few have a stronger motive to curry Trump’s favor than Silicon Valley: The fate of the H-1B visa program that permits foreign-born computer scientists, engineers and other highly skilled workers to migrate to the United States hangs in the balance.

Support for retaining H-1B from Elon Musk, the incoming president’s new closest associate, has stirred rage through much of Trump’s MAGA base, which is against immigration in almost any form. But keeping the pipeline open for tech and other skilled workers is seen by many business leaders as critical for the American economy, especially in California.

The state is by far the biggest user of the H-1B. More than 9,600 employers in California sought clearance for at least one H-1B worker in fiscal 2024, with 78,860 visa applications for new and continuing employment being approved, according to data from U.S. Citizenship and Immigration Services (USCIS).

They include all kinds of skilled work in various industries, including nurses and science teachers. But the top 10 beneficiaries of H-1B visas in California — accounting for almost one-third of all the approvals — were dominated by tech giants, most of them in the Bay Area.

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“Those companies are the ones that can afford to hire outside firms that navigate the paperwork, the bureaucracy, and can jump through the hoops,” said Todd O’Boyle, who leads technology policy at the Chamber of Progress, a group backed by big tech firms.

The number of H-1B visas for new employment is capped at 65,000 a year nationally. An additional 20,000 are set aside for foreign nationals who have earned a master’s degree or higher in the U.S. H-1B visas are good for three years but can be extended for up to another three years.

Tech companies in California and elsewhere have relied on the program even as they made massive job cuts following the pandemic, during which many went overboard on hiring and other spending.

The fact that tech companies have fired thousands of American workers while hiring large numbers of foreign workers has added to the fury of anti-immigration Trump supporters, who have long argued immigrants take jobs away from Americans by working for less pay.

The question of whether that claim is valid does not have an easy or simple answer.

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U.S. graduate school students in engineering and the sciences are disproportionately foreign-born, and even with that there are shortages of some highly skilled workers, particularly in high-tech engineering and emerging areas such as artificial intelligence.

Nvidia, the major Santa Clara supplier of AI hardware and software, got H-1B visa approvals for more than 1,500 workers last year in California, according to USCIS data. The company declined to comment, and other top tech users of the H-1B, including Google, Meta and Apple, didn’t immediately respond to requests for comment.

“If you lay off a programmer, it’s not the same skill set as somebody who has a post-doctorate in AI, so you have to look at the skills that are sought and why,” said Rep. Zoe Lofgren (D-San José), who sits on the House Subcommittee on Immigration and Citizenship.

But she said the H-1B isn’t without its challenges, pointing to cases in the past at UC San Francisco and Southern California Edison in which U.S. workers were reported displaced by lower-paid H-1B visa holders.

Employers who hire H-1B workers are required to pay wages at least as much as for similar U.S. professionals, but there are abuses. Lofgren said systemic improvements are needed, including stronger analysis on skill sets for the jobs available and more robust advertising on openings.

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What’s more, workers from India dominate H-1B visas, in part because there are country quotas for permanent immigration, and temporary work visas are seen as a bridge to that, although the wait is often many years.

“People say the immigration system is broken, and this is part of the brokenness,” Lofgren said, adding that especially for California, “our economy is dependent on, and our prosperity is tied to, immigrants.”

The acrimony over the H-1B in recent days spiraled after far-right activist Laura Loomer attacked H-1B as a threat to American workers and national security.

She and other critics of worker visas say they lead to fewer jobs for U.S. workers, but academic research over the years has found little evidence to support that claim overall. And although some laid-off workers have been forced to retire or switch careers, studies have found many also have been re-employed relatively quickly.

For computer and mathematical occupations, the November unemployment rate was just 2.5%, up from 1.7% a year ago; and it was unchanged at 2% for architectural and engineering occupations, according to the U.S. Bureau of Labor Statistics.

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Loomer suggested a major clash ahead between immigration hardliners like Stephen Miller, named as Trump’s deputy chief of staff for policy, and those including Vivek Ramaswamy, the former Republican presidential candidate who with Musk has been charged by Trump to cut government spending and regulation.

Musk, the world’s richest person who runs Tesla and SpaceX and is himself an immigrant and onetime H-1B visa holder, has come out championing the hiring of skilled foreign workers.

The visa program has certainly helped Tesla, which this fiscal year received H-1B approvals for 1,765 new and continuing workers, although SpaceX has grown with little benefit of H-1B workers. (Musk moved Tesla’s headquarters to Austin from Palo Alto at the end of 2021, and said this year that he was relocating SpaceX to Texas as well.)

“OF COURSE my companies and I would prefer to hire Americans and we DO, as that is MUCH easier than going through the incredibly painful and slow work visa process,” Musk wrote on Christmas Day on his social media platform, X. “However, there is dire shortage of extremely talented and motivated engineers in America.” He added: “It comes down to this: do you want America to WIN or do you want America to LOSE. If you force the world’s best talent to play for the other side, America will LOSE.”

Trump on Saturday seemed to side with Musk.

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“I’ve been a believer in H-1B. I have used it many times,” he told the New York Post. “It’s a great program.”

(Trump’s businesses have used predominantly the H-2B program, which are for temporary seasonal workers that hotels and tourist businesses, for example, make heavy use of during summer. H-2A is for temporary farm workers.)

Despite his record and promises to seal the borders and deport millions of undocumented immigrants, Trump’s remarks raised hopes among some immigration advocates that the incoming president could take a softer tack on H-1B visas.

In his first term, Trump’s team made it a lot tougher for employers to get H-1B approvals, and denial rates jumped above 20% in fiscal years 2018 and 2019, triple the average of the prior administration, according to the National Foundation for American Policy, a Washington think tank that favors higher levels of immigration.

“At minimum it muddies the waters,” said Stuart Anderson, the group’s executive director. “It could signal a neutral policy rather than a hostile one.”

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Stephen Yale-Loehr, an immigration expert at Cornell Law School, said that despite the deficiencies in H-1B, he believes that “most employers try to follow the rules. At the macro-level H-1B workers are helping our economy and creating more jobs for U.S. workers.”

Entrepreneurs, in particular, have talked about skilled worker visas as being critical for their growth.

Yale-Loehr also noted that recent changes have given U.S. immigration officials greater authority to tighten up the H-1B program, including imposing penalties and inspections.

That could strengthen enforcement and cut down on abuses, if Trump actually follows through on his supportive remarks.

“It’s too early to see. You’ve got some people in the administration like Elon Musk who want to preserve the H-1B category and other people like Stephen Miller who want to restrict all immigration, including H-1B,” Yale-Loehr said. “We’ll see which side wins over the four years of the Trump administration.”

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U.S. Space Force awards $1.6 billion in contracts to South Bay satellite builders

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U.S. Space Force awards .6 billion in contracts to South Bay satellite builders

The U.S. Space Force announced Friday it has awarded satellite contracts with a combined value of about $1.6 billion to Rocket Lab in Long Beach and to the Redondo Beach Space Park campus of Northrop Grumman.

The contracts by the Space Development Agency will fund the construction by each company of 18 satellites for a network in development that will provide warning of advanced threats such as hypersonic missiles.

Northrop Grumman has been awarded contracts for prior phases of the Proliferated Warfighter Space Architecture, a planned network of missile defense and communications satellites in low Earth orbit.

The contract announced Friday is valued at $764 million, and the company is now set to deliver a total of 150 satellites for the network.

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The $805-million contract awarded to Rocket Lab is its largest to date. It had previously been awarded a $515 million contract to deliver 18 communications satellites for the network.

Founded in 2006 in New Zealand, the company builds satellites and provides small-satellite launch services for commercial and government customers with its Electron rocket. It moved to Long Beach in 2020 from Huntington Beach and is developing a larger rocket.

“This is more than just a contract. It’s a resounding affirmation of our evolution from simply a trusted launch provider to a leading vertically integrated space prime contractor,” said Rocket Labs founder and chief executive Peter Beck in online remarks.

The company said it could eventually earn up to $1 billion due to the contract by supplying components to other builders of the satellite network.

Also awarded contracts announced Friday were a Lockheed Martin group in Sunnyvalle, Calif., and L3Harris Technologies of Fort Wayne, Ind. Those contracts for 36 satellites were valued at nearly $2 billion.

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Gurpartap “GP” Sandhoo, acting director of the Space Development Agency, said the contracts awarded “will achieve near-continuous global coverage for missile warning and tracking” in addition to other capabilities.

Northrop Grumman said the missiles are being built to respond to the rise of hypersonic missiles, which maneuver in flight and require infrared tracking and speedy data transmission to protect U.S. troops.

Beck said that the contracts reflects Rocket Labs growth into an “industry disruptor” and growing space prime contractor.

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California-based company recalls thousands of cases of salad dressing over ‘foreign objects’

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California-based company recalls thousands of cases of salad dressing over ‘foreign objects’

A California food manufacturer is recalling thousands of cases of salad dressing distributed to major retailers over potential contamination from “foreign objects.”

The company, Irvine-based Ventura Foods, recalled 3,556 cases of the dressing that could be contaminated by “black plastic planting material” in the granulated onion used, according to an alert issued by the U.S. Food and Drug Administration.

Ventura Foods voluntarily initiated the recall of the product, which was sold at Costco, Publix and several other retailers across 27 states, according to the FDA.

None of the 42 locations where the product was sold were in California.

Ventura Foods said it issued the recall after one of its ingredient suppliers recalled a batch of onion granules that the company had used n some of its dressings.

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“Upon receiving notice of the supplier’s recall, we acted with urgency to remove all potentially impacted product from the marketplace. This includes urging our customers, their distributors and retailers to review their inventory, segregate and stop the further sale and distribution of any products subject to the recall,” said company spokesperson Eniko Bolivar-Murphy in an emailed statement. “The safety of our products is and will always be our top priority.”

The FDA issued its initial recall alert in early November. Costco also alerted customers at that time, noting that customers could return the products to stores for a full refund. The affected products had sell-by dates between Oct. 17 and Nov. 9.

The company recalled the following types of salad dressing:

  • Creamy Poblano Avocado Ranch Dressing and Dip
  • Ventura Caesar Dressing
  • Pepper Mill Regal Caesar Dressing
  • Pepper Mill Creamy Caesar Dressing
  • Caesar Dressing served at Costco Service Deli
  • Caesar Dressing served at Costco Food Court
  • Hidden Valley, Buttermilk Ranch
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They graduated from Stanford. Due to AI, they can’t find a job

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They graduated from Stanford. Due to AI, they can’t find a job

A Stanford software engineering degree used to be a golden ticket. Artificial intelligence has devalued it to bronze, recent graduates say.

The elite students are shocked by the lack of job offers as they finish studies at what is often ranked as the top university in America.

When they were freshmen, ChatGPT hadn’t yet been released upon the world. Today, AI can code better than most humans.

Top tech companies just don’t need as many fresh graduates.

“Stanford computer science graduates are struggling to find entry-level jobs” with the most prominent tech brands, said Jan Liphardt, associate professor of bioengineering at Stanford University. “I think that’s crazy.”

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While the rapidly advancing coding capabilities of generative AI have made experienced engineers more productive, they have also hobbled the job prospects of early-career software engineers.

Stanford students describe a suddenly skewed job market, where just a small slice of graduates — those considered “cracked engineers” who already have thick resumes building products and doing research — are getting the few good jobs, leaving everyone else to fight for scraps.

“There’s definitely a very dreary mood on campus,” said a recent computer science graduate who asked not to be named so they could speak freely. “People [who are] job hunting are very stressed out, and it’s very hard for them to actually secure jobs.”

The shake-up is being felt across California colleges, including UC Berkeley, USC and others. The job search has been even tougher for those with less prestigious degrees.

Eylul Akgul graduated last year with a degree in computer science from Loyola Marymount University. She wasn’t getting offers, so she went home to Turkey and got some experience at a startup. In May, she returned to the U.S., and still, she was “ghosted” by hundreds of employers.

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“The industry for programmers is getting very oversaturated,” Akgul said.

The engineers’ most significant competitor is getting stronger by the day. When ChatGPT launched in 2022, it could only code for 30 seconds at a time. Today’s AI agents can code for hours, and do basic programming faster with fewer mistakes.

Data suggests that even though AI startups like OpenAI and Anthropic are hiring many people, it is not offsetting the decline in hiring elsewhere. Employment for specific groups, such as early-career software developers between the ages of 22 and 25 has declined by nearly 20% from its peak in late 2022, according to a Stanford study.

It wasn’t just software engineers, but also customer service and accounting jobs that were highly exposed to competition from AI. The Stanford study estimated that entry-level hiring for AI-exposed jobs declined 13% relative to less-exposed jobs such as nursing.

In the Los Angeles region, another study estimated that close to 200,000 jobs are exposed. Around 40% of tasks done by call center workers, editors and personal finance experts could be automated and done by AI, according to an AI Exposure Index curated by resume builder MyPerfectResume.

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Many tech startups and titans have not been shy about broadcasting that they are cutting back on hiring plans as AI allows them to do more programming with fewer people.

Anthropic Chief Executive Dario Amodei said that 70% to 90% of the code for some products at his company is written by his company’s AI, called Claude. In May, he predicted that AI’s capabilities will increase until close to 50% of all entry-level white-collar jobs might be wiped out in five years.

A common sentiment from hiring managers is that where they previously needed ten engineers, they now only need “two skilled engineers and one of these LLM-based agents,” which can be just as productive, said Nenad Medvidović, a computer science professor at the University of Southern California.

“We don’t need the junior developers anymore,” said Amr Awadallah, CEO of Vectara, a Palo Alto-based AI startup. “The AI now can code better than the average junior developer that comes out of the best schools out there.”

To be sure, AI is still a long way from causing the extinction of software engineers. As AI handles structured, repetitive tasks, human engineers’ jobs are shifting toward oversight.

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Today’s AIs are powerful but “jagged,” meaning they can excel at certain math problems yet still fail basic logic tests and aren’t consistent. One study found that AI tools made experienced developers 19% slower at work, as they spent more time reviewing code and fixing errors.

Students should focus on learning how to manage and check the work of AI as well as getting experience working with it, said John David N. Dionisio, a computer science professor at LMU.

Stanford students say they are arriving at the job market and finding a split in the road; capable AI engineers can find jobs, but basic, old-school computer science jobs are disappearing.

As they hit this surprise speed bump, some students are lowering their standards and joining companies they wouldn’t have considered before. Some are creating their own startups. A large group of frustrated grads are deciding to continue their studies to beef up their resumes and add more skills needed to compete with AI.

“If you look at the enrollment numbers in the past two years, they’ve skyrocketed for people wanting to do a fifth-year master’s,” the Stanford graduate said. “It’s a whole other year, a whole other cycle to do recruiting. I would say, half of my friends are still on campus doing their fifth-year master’s.”

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After four months of searching, LMU graduate Akgul finally landed a technical lead job at a software consultancy in Los Angeles. At her new job, she uses AI coding tools, but she feels like she has to do the work of three developers.

Universities and students will have to rethink their curricula and majors to ensure that their four years of study prepare them for a world with AI.

“That’s been a dramatic reversal from three years ago, when all of my undergraduate mentees found great jobs at the companies around us,” Stanford’s Liphardt said. “That has changed.”

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