The US House of Representatives recently passed the COMPETES Act, a sweeping legislation that seeks to boost America’s capabilities in the supply, manufacture and R&D for technologies like semiconductors and emerging tech.

The America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength Act of 2022 will bring several provisions that will shore up US capabilities to reduce its reliance on Chinese manufacturing of several critical items. Additionally, the new legislation will open up new avenues for global tech talent, entrepreneurs and business owners to come to the US.

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“Business and labor alike have praised this legislation as vital for continuing the economic momentum we’ve seen over the last year, and national security leaders from both parties have said that the investments in this bill are needed if we want to maintain our competitive edge globally,” said President Joe Biden.

What does the Act propose?

The Act brings several proposals and amendments to existing legal documents in the country. The 2,900-page House Bill contains measures to promote semiconductor manufacturing and research in the US, along with provisions to improve critical supply chains, and bolster science, technology, engineering, and mathematics (STEM) education and training in the country.

The Bill provides roughly $350 billion through grants and funding for the objectives set out in its provisions; making the US the clear and eminent leader in cutting edge technology, science and become self-capable for many critical modern items.

The COMPETES Act 2022 is not the first such Bill to be introduced and passed in the US. The first legislation of the same name with many of the same goals was introduced on August 9, 2007, by President George W. Bush. This Act was reauthorised through another legislation called the America COMPETES Reauthorization Act of 2010 in 2011 by President Barack Obama.

What does it hold for Indians?

Perhaps the most important provision in the Act for Indian workers and startups is the fact that it authorises the Department of Homeland Security to set up new procedures for the immigration of individuals who wish to own a startup in the US.

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Under the Act, the Immigration and Nationality Act will be amended to create three distinct classes of the ‘W’ visa. The W-1 visa will be available to foreign nationals who have ownership interest in startups. The W-2 visa is for foreign nationals who are critical for operations of the startups in staff roles and finally the W-3 visa is meant for spouses and children of W-1 and W-2 visa holders.

To be eligible for a W-1 visa, a foreign national must have at least a 10 percent stake in a startup within the US, which also has $250,000 in qualified investments from a US citizen or organisation. Additionally, they are also considered eligible if the foreign national has received $100,000 in government funding, awards or grants in the previous 1.5 years.

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Potential visa holders will need to prove a track record of job creation, or successful funding, or revenue generation. The Act will allow W-1 visa holders to get extensions of their visa classification for up to eight years, dependent on meeting certain growth metrics. The initial visa is granted for a period of three years.

Additionally, the Bill will remove the caps for H-1B visas for individuals who have secured a doctoral degree in a STEM subject from a qualified US research institution or a foreign institution, if the foreign institution’s qualification is recognised as being equal to one being provided by a US institute.

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(Edited by : Shoma Bhattacharjee)