America can't afford to lose the high-skilled talent race in today's competitive markets 

A recent social media clash that erupted between Elon Musk, Vivek Ramaswamy and Trump loyalists over high-skilled immigration reform exposed deep ideological rifts within the Republican coalition. But the importance of the debate over immigration policy and the American education system extends far beyond social media — solving these problems is critical to America’s competitiveness.

By combining pragmatic immigration reforms, bold educational investments and innovative AI-driven learning, we can forge the “Talent Dominance” agenda we desperately need. 

Human capital is the linchpin of America’s competitiveness, especially in key fields such as AI and quantum computing. As the global landscape evolves, it won’t be just technological assets or financial resources that determine a nation’s standing; it will be the skills, creativity and expertise of its people. America needs an “all of the above" approach, blending high-skilled immigration reforms with a renewed commitment to strengthening our domestic talent pipelines to have a workforce equipped to pioneer new ideas, harness these innovations, and adapt in the face of unprecedented challenges. 

High-skilled immigration is indispensable to that strategy. Immigrants comprise 16 percent of U.S. inventors but drive 23 percent of innovation output through patents, citations and economic impact. They also founded or co-founded nearly two-thirds of top U.S. AI companies, and Census data show that immigrant-owned firms are more likely to develop new products and invest in research and development.

The urgency of high-skilled immigration reform is clear and enjoys broad bipartisan support, with 71 percent of voters for Donald Trump and 87 percent of voters for Kamala Harris in favor of admitting more high-skilled immigrants. This broad appeal stems not just from economic benefits but also national security. Recent congressional reports on U.S.-China relations underscore that winning the global race for talent is essential to maintaining America’s competitive edge.

Attracting global talent is essential, but America cannot afford to neglect its domestic talent pipeline, either. Over-reliance on high-skilled immigration has obscured the pressing need to address the cracks in our education and workforce systems, particularly in the so-called "STEM" areas of science, technology, engineering and mathematics.  

The foundation of a strong talent pipeline begins in our elementary and secondary schools. Yet, recent national assessments paint a stark picture: two decades of progress in math have been wiped out due to the disruption caused by pandemic-era school closures. Today, only 36 percent of fourth graders and just 26 percent of eighth graders are scoring above proficiency in math. America cannot lead the future of AI and other technological frontiers if our students fail to master foundational math. 

President-elect Trump now has an opportunity to advance a comprehensive strategy that prioritizes STEM education and workforce training, to equip American workers with the skills needed to dominate critical industries like artificial intelligence, semiconductor manufacturing and advanced robotics.  

The best way to put “America first” is by putting our students first. Trump should convene a bipartisan summit of governors and business leaders to focus attention and strategies on how to jump-start the stalled academic recovery. The education reforms that matter most to our nation are best achieved through state leadership. Through academic accountability, targeted tutoring, expanding parental choices and rigorous curricula, states can reverse learning losses and restore confidence in American education. 

Part of this effort should involve encouraging governors to offer counseling, financial incentives and flexible learning formats to the 36.8 million Americans who started college but never finished with a degree or credential. This is not just wasted taxpayer investment — it represents vast untapped human potential that could be mobilized to strengthen the economy and workforce. 

Meanwhile, welcoming high-skilled immigrants can fill urgent talent gaps in STEM fields, provided the system is modernized. Current H-1B rules penalize companies with many visa holders unless they pay at least $60,000 — an outdated threshold set in 1998. The solution, as Elon Musk and the Institute for Progress have suggested, is to raise the floor with automatic adjustments for inflation. This would ensure H-1Bs are used for high-value work, discouraging companies from relying on them to outsource jobs. It would also generate over $11 billion in additional payroll taxes over a decade, with no cost to taxpayers — funds that could be used to support the education and training of Americans.   

Trump is also correct in wanting to grant green cards to foreign graduates of U.S. colleges. It defies logic to educate talented individuals only to force them to take their skills elsewhere, where they often compete against American companies. Instead, we should harness this talent to strengthen the U.S. workforce and drive innovation at home.  

Now is the time to challenge America’s leading AI companies to channel their groundbreaking innovations toward strengthening our talent pipeline. AI holds immense potential to serve as a personal tutor: accelerating student learning, guiding high school students through college and career decisions, and opening new pathways to success.  

Together, these policies would reduce reliance on foreign supply chains of human capital, strengthen national security and position America as the leader in cutting-edge technologies — all while putting American workers and industries first by fostering a stronger, more competitive economy. 

America’s real competitive edge lies in its people. If we fail to act, today’s political skirmishes will become tomorrow’s lost opportunities. America can’t afford that. 

John Bailey is a nonresident senior fellow at the American Enterprise Institute, with a focus on education and technology. He serves as a member of Virginia’s AI Taskforce for Gov. Glenn Youngkin (R) and regularly briefs members of Congress, state policymakers and business leaders on the impact and potential of AI.