Post by : Rameen Ariff

The H-1B and L-1 visa programs, widely used by US companies to hire skilled foreign workers, especially from India, are under scrutiny again. On Monday, three US senators proposed new legislation aimed at tightening rules and closing loopholes in these programs, citing concerns about misuse by for-profit and non-profit employers.

Senators Chuck Grassley, a Republican from Iowa, and Dick Durbin, a Democrat from Illinois, introduced a bill that seeks to raise wage and hiring standards, require public job postings, and narrow eligibility criteria for visa applicants. Grassley said, “The H-1B and L-1 visa programs were created to bring top talent when it isn’t available in the US. However, many employers have used these visas to replace American workers with cheaper foreign labor.” Durbin added that several major companies have laid off thousands of American employees while hiring foreign workers at lower wages, highlighting the need for congressional intervention.

The proposed legislation echoes similar efforts in 2007, which were supported by bipartisan lawmakers including Tommy Tuberville, Richard Blumenthal, and Bernie Sanders.

Separately, Senator Tom Cotton, Republican from Arkansas, has introduced a bill restricting universities, research institutions, and non-profits from hiring unlimited foreign workers. Cotton stated, “Colleges and universities have abused loopholes to bring in professors from around the world. My bill ensures fair hiring practices.”

The H-1B visa, commonly used by the US tech sector, particularly Indian IT companies like TCS, Infosys, and Wipro, has gained attention following a $100,000 annual fee imposed by former President Donald Trump. This fee represents a major increase from the current $215 rate. Alongside this, the Trump administration has proposed ending the H-1B lottery system in favor of a wage-based selection process, giving applicants with higher salaries better chances of selection. For instance, a worker earning $162,528 annually would receive four chances, while lower-paid workers receive fewer.

Indian nationals account for 71% of all H-1B visa grants, and these changes could significantly impact the hiring strategies of US tech companies, potentially reducing job opportunities or shifting roles back to India.

The Indian government has acknowledged the proposed rule changes and the one-month public comment period. The Ministry of External Affairs emphasized that skilled worker mobility has greatly contributed to technological growth in both the US and India. Officials also warned that the fee hike could disrupt families and have broader humanitarian consequences, and they are currently assessing the full implications.

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