US Lawmakers Propose Major Reforms to H-1B and L-1 Visa Programs Targeting "Loopholes" and Fee Structures

New Delhi:

Three United States senators introduced two separate legislative proposals on Monday aimed at tightening regulations for H-1B and L-1 worker visa programs by addressing what they described as "loopholes" exploited by employers.

Republican Senator Chuck Grassley from Iowa and Democratic Senator Dick Durbin of Illinois, both leading members of the Senate Judiciary Committee, proposed legislation that would enhance wage standards, require public job postings, and restrict visa eligibility criteria.

Grassley emphasized that while Congress originally designed these visa programs as limited pathways for businesses to recruit exceptional talent unavailable domestically, many employers have instead used them to replace American workers with lower-cost foreign labor.

Senator Durbin highlighted how major corporations terminate thousands of American employees while simultaneously filing visa petitions for foreign workers at reduced wages and substandard working conditions. He stressed that Congressional intervention is necessary to protect American workers and reform the flawed immigration system.

The Grassley-Durbin bill resembles legislation first introduced in 2007, which received support from Republican Senator Tommy Tuberville of Alabama, Democratic Senator Richard Blumenthal of Connecticut, and Independent Senator Bernie Sanders of Vermont.

In a parallel initiative, Republican Senator Tom Cotton of Arkansas introduced separate legislation targeting universities, research institutions, and non-profit organizations by limiting their ability to hire unlimited foreign workers.

Cotton argued that academic institutions should not receive preferential treatment for recruiting what he termed "woke and anti-American professors" from around the world. His bill aims to eliminate exemptions to visa caps that universities have allegedly exploited.

The L-1 visa program permits companies to relocate existing employees from overseas offices to the United States.

The H-1B visa program, extensively utilized by the US technology sector for recruiting skilled professionals from India and China, has come under increased scrutiny following President Donald Trump's recent imposition of a $100,000 annual fee—a dramatic increase from the previous $215 rate.

Simultaneously, the Trump administration announced plans to replace the current lottery system with a weighted selection process. The Department of Homeland Security proposed allocating visas based on wage levels, giving preference to higher-paid workers.

Under this proposal, workers earning $162,528 annually would receive four "lottery tickets," while those in lower wage tiers would receive fewer chances. Applicants in the lowest tier would receive only one ticket.

Indians constitute 71 percent of all H-1B visa recipients according to US Citizenship and Immigration Services data. Major Indian IT companies including TCS, Infosys, and Wipro heavily rely on these visas, and these changes could potentially cost them billions. Likely outcomes include reduced hiring or relocating positions back to India.

The Indian government has acknowledged the proposed rule changes and the one-month comment period. The Ministry of External Affairs emphasized that skilled talent mobility has significantly contributed to technological development and innovation in both the United States and India.

Indian officials also expressed concern that the substantial fee increase could have humanitarian consequences and disrupt families. The government continues to study these and other implications of the new regulations.