Trump 2.0

Trump Administration Proposes Wage-Based ‌Selection for ‍H-1B‍ Visas

The‌ Trump administration has unveiled a proposed rule ‍to overhaul the H-1B visa selection⁢ process, prioritizing applicants with higher ⁤wages and skill levels. Released Tuesday with a⁤ corresponding⁢ notice in⁤ the‍ Federal Register,⁢ the plan ⁤comes shortly after a Friday announcement introducing a potential $100,000 fee for H-1B visas.

Currently, the H-1B program, which ⁣allows U.S. companies to employ foreign workers in specialized fields,‍ utilizes a lottery system when demand ‍exceeds the⁣ annual cap of‍ 85,000 visas (65,000 regular ‌visas and 20,000 for those⁢ with advanced degrees). The proposed regulation would shift this system to a wage-tiered approach, ‌increasing the likelihood of selection for applications associated with higher-paying​ jobs.

The​ administration states the change ⁣is intended to protect American workers from wage⁢ competition with foreign labor. According‍ to estimates from the Department of⁤ Homeland ‍Security ⁢(DHS), the new rules could lead⁤ to an increase in total wages paid⁢ to H-1B workers, reaching $502 million⁣ in⁤ fiscal ⁢year 2026, rising ​to $2 billion‍ annually by 2029-2035.

However, DHS also anticipates a meaningful economic impact on approximately 5,200⁢ small businesses currently utilizing the H-1B program, potentially due to labor shortages.

This⁤ is not‍ the first attempt to modify the H-1B selection‌ process. A ‌similar‌ regulation proposed during Trump’s previous presidency (2017-2021)⁢ was blocked by a federal judge ⁣in 2021 and ⁣later⁤ withdrawn by the biden administration.

The proposed rule is ​now open for a 30-day public comment​ period, beginning Wednesday. If finalized, the changes could‍ be implemented for the 2026 lottery, impacting registrations in March ‍of that year.

Government data⁣ reveals India is the ⁤primary beneficiary of the⁢ H-1B program, receiving 71% of approved visas last year, followed⁤ by China‍ at ​11.7%. The program​ is supported by figures like Elon Musk, a naturalized U.S. citizen who previously held an H-1B visa, who argue it helps fill critical talent gaps.​ Conversely, critics contend the program can depress wages⁢ and displace qualified American workers.

TikTok’s Future in the US: White House Confirms ⁤American Control of New Entity

The United States is moving towards​ a ‌resolution in its ongoing effort‍ to restructure TikTok’s US ⁤operations, aiming to separate​ it from its Chinese⁣ parent ⁢company, ByteDance, due ​to national security ⁢concerns. Under the ​Biden administration,and following a law⁣ passed⁣ by Congress,ByteDance faces a potential ban on the app ‌unless it divests⁢ its ‍US assets.

concerns raised ⁤by US​ policymakers, dating ⁣back to the Trump administration, center on the​ possibility of ⁢China⁢ utilizing TikTok to collect data ⁤from American⁣ users ⁢or‌ influence the content they consume. Tho, former ⁢President Donald Trump, during his 2024 presidential campaign, repeatedly delayed implementing the ban while seeking a negotiated solution.

Recent developments suggest⁤ a deal is progressing.white House officials have indicated that Americans will dominate the board of a new TikTok ​US ⁤entity. Leavitt,⁤ speaking to Fox News, confirmed that Oracle, the tech firm ‍owned by Larry​ ellison, a prominent Trump supporter, will lead data privacy and security efforts. She ‌also stated that⁣ control of the app’s algorithm will ‌reside within the United States, adding, “all of those details have​ already been ⁣agreed upon. Now we just need this deal to be signed.”

China has acknowledged the ‌ongoing negotiations, reiterating its position that⁢ ByteDance ‌should be able to ​pursue⁣ commercial negotiations ⁢”in accordance with⁤ market ​rules” to‌ reach a ‍solution compliant with Chinese laws and regulations, and balancing ⁣the interests of⁤ both nations. The Commerce⁣ Ministry statement,released after‍ Trump ​announced progress⁣ in talks with President ⁤Xi Jinping,mirrors previous statements from the past week.

Key questions remain regarding the final ownership structure, the extent of China’s continued influence over TikTok’s ​operations, and the potential benefits Beijing will receive ⁢in exchange for allowing US involvement in one of its most prosperous‍ companies.

The resolution of the ‌TikTok issue is ‍viewed as potentially⁣ unlocking concessions⁤ in other trade areas between ​the ⁢US and China, including ‍sectors like aerospace and agriculture. China hopes the US will fulfill⁣ commitments to ⁢create an ⁤open,fair,and⁤ non-discriminatory business environment for Chinese enterprises operating within⁣ the US,including ⁣TikTok.

A framework⁣ deal ​reached in madrid earlier this ‌week ⁣has been ‍described by Chinese ⁣officials and state media as a⁣ “win-win,” with promises to review⁤ TikTok’s technology exports⁣ and intellectual property licensing. This⁢ deal addressed a ⁢key requirement set by the US Congress,‍ which originally mandated the app be shut⁤ down for US users by ‌January‌ 2025 if ByteDance failed to ‌sell its ⁢US ‌assets.

he Yadong,⁣ a spokesperson for China’s Commerce Ministry, emphasized China’s desire for ‌the US to reduce trade⁤ barriers for Chinese firms​ when questioned​ about the benefits of the Madrid deal. TikTok currently has ​170⁤ million ​users in the‌ United ​States.

China Reiterates Position ⁣on TikTok ⁤Following Trump-Xi Conversation

Beijing -⁣ China’s ⁣Commerce Ministry reaffirmed its stance‌ on the future of TikTok in ⁣the United States on Saturday, following a phone⁤ call between US⁤ President Donald Trump and Chinese President Xi ‍jinping on Friday. The ⁣Ministry stated it respects the wishes of TikTok’s parent ⁢company, ​ByteDance, ⁤and supports commercial negotiations that comply ⁤wiht Chinese laws and regulations ⁤while balancing the interests of all parties.

The statement, echoing previous ⁣pronouncements over the past week,‍ comes after⁤ a framework deal ⁢was ⁣reached in madrid⁢ earlier this week. Chinese officials ⁢and state media have described the agreement as​ a “win-win,” indicating a ‌willingness to review‌ TikTok’s technology‌ exports and intellectual​ property licensing.

The Ministry further expressed hope that the US will‍ create a more favorable business habitat for Chinese companies operating within its borders, including TikTok, ensuring it is open,⁣ fair,‍ equitable, and non-discriminatory.

He Yadong, a⁣ spokesperson for the Commerce Ministry, reiterated this desire during a Thursday news conference, responding to questions about Beijing’s gains ‍from the Madrid deal.He emphasized the need for the US⁤ to reduce trade⁣ barriers facing ⁢Chinese firms.

The​ framework deal represents a key step for President Trump in potentially ⁣averting⁤ a ban on TikTok. The US Congress had⁤ previously⁤ mandated that TikTok either sell its US assets to a‌ non-Chinese owner or face being shut down for US‌ users by January⁣ 2025.

The future ⁤ownership structure ​of TikTok,‌ the extent of china’s continued control ​over the ‍app’s operations, ⁢and the potential benefits for Beijing‌ remain⁢ key questions surrounding the ongoing negotiations. Progress⁣ on TikTok is ​viewed as potentially unlocking ⁤concessions in other trade areas between‌ the world’s ​two ​largest economies. TikTok currently has 170⁢ million users in the United States.

Here’s a breakdown of the key themes and arguments presented in the article, along with a summary:

summary:

The article discusses the potential impact of a recent executive order (likely from the US government) that could allow alternative investments – like private equity, crypto, and investments in private companies – into 401(k) retirement plans. While proponents argue these investments offer higher returns, experts express notable concerns about liquidity, fees, clarity, and the suitability of these assets for typical retirement savers. The article highlights a potential shift away from the decades-long trend of reducing fees in retirement plans and the challenges of integrating illiquid assets into systems designed for daily trading.

Key Themes & Arguments:

Potential for Higher Returns vs. Increased Risk: The core debate revolves around the trade-off between potentially higher returns offered by alternative assets and the inherent risks associated with them. Critics argue these investments are riskier, less regulated, and less transparent than traditional options. Fee Concerns: A major point of contention is the significantly higher fees associated with alternative investments. Private equity’s “2 and 20” model (2% management fee + 20% of gains) is contrasted with the average 0.26% fees of traditional mutual funds. There’s concern that fees aren’t always clearly disclosed.
Liquidity Issues: Alternative assets are often illiquid – meaning they can’t be easily bought or sold. This poses a problem for 401(k) plans, which are designed for investors who may need to access their funds relatively quickly. The article points out the mismatch between systems built for daily trading and the nature of these assets. Transparency & Disclosure: The article emphasizes the lack of transparency in alternative investments, making it difficult for investors (and plan sponsors) to understand the true costs and risks involved.
Investor Suitability: Experts question whether these complex investments are appropriate for the average 401(k) investor, who may not have the knowledge or time to properly evaluate them. Blackstone suggests these are more suitable for younger investors with longer time horizons.
Systemic Challenges: Integrating alternative assets into existing 401(k) infrastructure presents significant technical and operational challenges. Reversal of Trend: The potential shift towards allowing these assets could reverse the long-standing trend of lowering fees in retirement plans.
Need for Education: There’s a consensus that increased investor education will be crucial if alternative assets are to be incorporated into 401(k) plans.

Key People Quoted & Their Perspectives:

Christopher Bailey (Cerulli Associates): Highlights liquidity concerns and fees.
Philitsa Hanson (Allvue Systems): raises questions about the executive order and the challenges of incorporating these assets. Dmitriy Katsnelson (Wealthspire Advisors): Notes the potential reversal of the fee-cutting trend.
Jason Kephart (Morningstar): Points out the lack of clarity in alternative investment fees.
* Jon Gray (Blackstone): Suggests these assets are better suited for younger investors.

Overall Tone:

The article is largely critical and cautious about the prospect of alternative assets entering 401(k) plans. It emphasizes the potential risks and challenges, and suggests that significant changes and safeguards would be needed to protect investors.