COMPETES Act, 2022

COMPETES Act, 2022


  • The United States has unveiled the ambitious America Creating Opportunities for Manufacturing, Pre-Eminence in Technology and Economic Strength (COMPETES) Act, 2022 that seeks to open new avenues for talented individuals around the world with a new start-up visa.
  • It aims to strengthen supply chains and reinvigorate the country’s economy in innovation to overtake China and the rest of the world in the coming decades.


  • US$52 billion to encourage semiconductor production in the US and US$45 billion for supply chain flexibility, grants and loans to improve manufacturing, among other programs.
  • Financing to address social and economic inequality, climate change and immigration. For example, it waives the green card limit for STEM (science, technology, engineering, or math) PhDs and creates a new green card for entrepreneurs.
  • A green card holder (permanent resident) is a person who has been granted the right to live and work in the United States on a permanent basis.
  • This bill/bill releases US$600 million annually to build manufacturing facilities to reduce the United States’ reliance on solar components manufactured in Xinjiang, China.
  • It creates a new category- ‘W’ of non-immigrants for entrepreneurs with an ownership interest in a start-up unit, essential employees of a start-up unit and their spouses and children.


  • This means that more opportunities will be available for Indian talent and skilled workers in America.
  • Be aware that every year many Indians and Indian companies receive a substantial portion of H-1B ‘work permits’ issued in that year. With this new category Indian professionals are also likely to seize the opportunities that will be provided by the Act.

Work Visa:

  • The IT revolution, the advent of the Internet and low-cost computers in developing countries like India, has led to the number of people willing to work at relatively low costs in the US, which is a great position for both employers and workers.
  • The US administration issues a certain number of visas each year to fill vacancies for highly skilled low-cost workers in IT and other related fields.
  • These visas allow companies outside the US to send employees to work at client sites.

Different types of Visa:

 H1-B Visa:

  • People seeking employment in the United States are required to obtain an H1-B visa. The H1-B visa is a visa granted to non-immigrant citizens seeking employment in the United States under sections 101(a) and 15(h) of the Immigration and Nationality Act.
  • It allows US employers to temporarily employ foreign workers in specialty occupations.

H2-B Visa:

  • The application form must be certified by the Labor Department to apply for such a visa. It is issued for temporary employment.

 L-1 Visa:

  • This is a non-immigrant visa under which companies can hire foreign workers in their subsidiaries or parent companies based in the US.

H-4 Visa:

  • An H-4 visa is issued to dependent family members (spouse) of H1-B visa holders who wish to remain in the US during their stay with the H1-B visa holder. Under the H-4 visa, the main applicant is the holder of the H1-B visa.
  • Family members such as spouses, children under the age of 21 qualify for H-4 visas and can apply at a US consulate in their home country.

 J-1 Visa:

  • This is for students on summer programs related to work-study.

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