Following President Trump’s announcement on September 19th imposing a $100,000 fee for H-1B visa applicants as a measure to prevent visa abuse and protect American workers’ rights, bipartisan members of Congress have introduced a visa reform bill, sparking significant attention in the industry.
Chairman of the Senate Judiciary Committee Chuck Grassley (Republican) and senior Senator Dick Durbin (Democrat) introduced “The H-1B and L-1 Visa Reform Act” on Monday, September 29th, aiming to reform the visa system for “intracompany transfers” and “professional technical workers”, to eliminate fraudulent practices, safeguard the rights of American workers and visa holders, and enhance transparency in recruiting foreign labor.
The two senators recently wrote to several large corporations, expressing concerns about these companies continuing to hire foreign employees on H-1B visas during massive layoffs.
Grassley pointed out that the H-1B and L-1 visa programs were originally intended to assist U.S. companies in recruiting high-skilled foreign professionals when qualified domestic talent is scarce. However, over the years, many employers have abused these visas by preferring to hire inexpensive foreign workers over American workers.
Grassley stated that this visa chaos has also led to issues of “low wages” and “poor working conditions” for foreign workers. He emphasized that foreign workers with visas often depend on their employers to maintain their temporary immigrant status, making them vulnerable to exploitation, particularly affecting foreign workers awaiting green cards and relying on temporary visas for years.
The newly proposed “H-1B and L-1 Visa Reform Act” will crack down on companies introducing large numbers of H-1B and L-1 foreign workers without hiring American workers and outsourcing opportunities. The bill also grants the Department of Labor (DOL) new powers and responsibilities to ensure effective enforcement of visa program regulations.
Some specific measures of the bill include:
1. Implementing new salary, recruitment, and disclosure requirements for employers.
2. Requiring employers to post relevant job vacancies on the Department of Labor searchable website for American workers and H-1B nonimmigrants laid off to inquire.
3. Authorizing the Department of Labor to charge fees for employer-submitted “labor condition applications.” These fees will be used for hiring an additional 200 DOL employees.
4. Reforming the H-1B program, such as prioritizing visas for high-education workers in STEM fields and revising the definition of “specialty occupation”, requiring applicants to hold a bachelor’s degree or higher.
5. Reforming the L-1 nonimmigrant program (mainly used for intra-company transfers), including establishing new time limits and stricter documentation requirements for “new office applications,” and requiring the State Department to verify foreign companies applying for visas, ensuring the authenticity of application information to prevent visa abuse.
6. The bill will increase penalties for employers violating wage regulations, including fines and visa application bans.
Grassley said, “Congress must intervene again to restore fairness to the visa program and rebuild the dignity of American and foreign workers. Both parties agree that these programs should return to their original purpose, and our bill will make this common goal a reality.”
Durbin stated, “Large corporations are laying off thousands of American workers while simultaneously applying for thousands of foreign worker visas with low wages and poor working conditions. Congress must intervene to protect American workers and repair our broken immigration system.”
The co-sponsors of this bill also include Senators Tommy Tuberville (Republican), Richard Blumenthal (Democrat), and Bernie Sanders (Independent).
Grassley and Durbin have collaborated since 2007 to advocate for improvements in the H-1B visa system.