If you draw a line through every tech company since the 1970's whose founders and or leadership, was either born outside the US or from parents who were, there wouldn't be a whole lot left.

The whole premise is ridiculous.

You should accept they are serial liars and ignore what they say, it makes analysis simpler because you don't have to reconcile spoken lies with reality. First, the scale of undocumented immigrant labor in agriculture and construction put the H1-B system to shame. But those industries have less overall dollars of profit to syphon to this administration and their allied power brokers. So this is just a simple shakedown for donations and - increasingly - direct and corrupt quid pro quo business arrangements with members or family of the administration.

It has the domestic policy fringe benefit, to them, of being disproportionately racist towards people with dark skin.

The strategic value of the H1-B system is the collection of international intellectual capital. The people coming to the US pay taxes, help build US companies, and help build US strategic strength from the technology they create. They aren't going to stop being smart and building software, and the president, the vice president, the former leader of DOGE, and almost everyone else involved knows this is true. This move directly benefits our foreign adversaries by reducing our available intellectual capital to build the "super intelligence" they pretend to care about.

So, making it harder for highly educated workers to come to the US directly harms the US strategically. The H1-B system is also abused. Acknowledging this is just the dirt-simple intellectual skill of accepting the idea that two conflicting are not mutually exclusive. When you want to sponsor an H1-B you must demonstrate that their are not domestic hires capable of doing the work, and Microsoft et al have just gotten quite adept at working this system. This is just a question of effective management of existing policy, which they had in place already. If they wanted to improve the situation, they had policy enforcement for this in place already and existing regulations in the Dep. of Labor (DOL) and Citizenship and Immigration Services (USCIS). Instead OMB and DOGE immediately and drastically cut DOL and USCIS budgets and staffing. So the administration clearly have no sincere interest in improving the situation.

To repeat this plainly: they are doing this to enrich themselves by bringing the tech industry profits further under administration control. They are also doing it because it is October and their internal polling numbers are concerning them with base turnout. Their base enjoys performative cruelty to non-white people, so they are hurting them for short term electoral advantage.

Talking about the long-term policy benefits of immigration and ethics is like talking about the ethical basis for use of force with a hungry wolf. It doesn't understand what you are saying and wouldn't care even if they could, and it is working from a simpler and more brutal decision framework.