Ankit Gupta, a general partner at Silicon Valley startup accelerator Y Combinator, is facing intense criticism after describing Vice President JD Vance's call for American companies to "hire and train Americans" as a return of diversity, equity, and inclusion policies. The dispute has escalated into a broader debate over immigration policy, the H-1B visa program, and whose interests the American economy should serve.
Gupta wrote on X: "In a win for the woke left DEI is back." His post came in response to Vance's public comments urging corporations to prioritize American workers when filling positions. The criticism from Gupta drew immediate pushback from senior Trump administration officials and conservative voices, who argued that prioritizing domestic workers represents sound economic policy rather than discrimination.
What the Left Is Saying
Proponents of expanded immigration and H-1B visa programs argue that these policies are essential for American competitiveness in technology and innovation. Tech industry leaders contend that skilled worker shortages justify importing talent to fill positions that go unfilled by American workers. Supporters of current immigration levels point to economic studies suggesting immigrant workers contribute to job creation and economic growth, arguing that restrictions could harm startups and established tech companies alike.
Some progressive voices have expressed concern that framing the debate around "Americans first" could mask underlying wage suppression issues. The argument holds that corporations use both DEI initiatives and visa programs to manage labor costs rather than genuinely address workforce development needs.
What the Right Is Saying
Labor Department Inspector General Anthony D'Esposito pushed back directly on Gupta's characterization, writing: "No, Ankit. It's called putting your own citizens first." He argued that American companies should prioritize American jobs and workers as a fundamental principle of economic policy.
FTC Chairman Andrew Ferguson was more pointed in his criticism. "Y Combinator is a supposed champion of 'Little Tech' but perhaps they're nothing more than a front for the far left," he wrote on X. "The purpose of the American economy is to promote the general welfare of American workers, not provide jobs for the rest of the world." Ferguson subsequently posted that Gupta had blocked him after the criticism.
Nalin Haley, son of former South Carolina Gov. and U.N. Ambassador Nikki Haley, added: "You can have a meritocracy in AMERICA but it has to apply to AMERICANS. Otherwise we're just a globalist entity and not even a country anymore." He called for an immediate ban on H-1B visas.
Assistant Attorney General Harmeet Dhillon of the Justice Department's Civil Rights Division accused some technology companies of exploiting visa programs, including failing to advertise openings through regular channels. "These are not good business practices; they are not patriotic economic practices; and they are illegal labor practices," she wrote. She said the administration would not allow employers to discriminate against American workers.
What the Numbers Show
The Trump administration's effort to overhaul H-1B visa policy remains ongoing despite legal setbacks. A federal judge blocked a 2025 effort to impose a $100,000 payment on new H-1B petitions through a presidential proclamation. The administration has since pivoted to regulatory approaches.
The Department of Homeland Security has proposed a formal rule establishing a $103,265 fee for cap-subject H-1B petitions. This represents a significant increase from current fees and would substantially raise the cost of sponsoring foreign workers for companies seeking to fill specialized positions.
Additionally, the Labor Department has proposed changing how wages are calculated in H-1B and related visa programs. The department stated the proposal aims to curb incentives to hire foreign workers at below-market pay and protect wages and job opportunities for American workers. The changes would affect prevailing wage determinations that employers must meet when sponsoring visa holders.
Y Combinator, founded in 2005, has backed thousands of startup companies and is considered one of the most influential accelerators in Silicon Valley. Gupta serves as a general partner at the firm. Fox News Digital reached out repeatedly to Y Combinator and Gupta for comment but did not receive a response.
The Bottom Line
The dispute reflects deeper tensions between portions of the tech industry, which has historically supported expanded immigration to access global talent pools, and the Trump administration's "America First" economic agenda focused on domestic workforce development. The confrontation highlights how debates over immigration policy intersect with questions about economic nationalism, corporate practices, and whose interests government should prioritize.
The administration is expected to continue pursuing H-1B reform through regulatory channels following the judicial block on presidential proclamation authority. Watch for further rulemaking from the Department of Homeland Security and Labor Department as both agencies work to reshape visa program economics. The outcome will affect thousands of companies that rely on skilled foreign workers to fill positions in technology, healthcare, engineering, and other specialized fields.