Following the Trump administration’s substantial H-1B visa fee increase to $100,000, a new bipartisan bill has emerged in the U.S. Senate proposing further changes to the visa allocation system, specifically targeting the H-1B and L-1 visas. This legislation, introduced by Senators Chuck Grassley and Dick Durbin, is expected to have a significant impact on Indian professionals, who constitute a large percentage of H-1B visa beneficiaries.
The proposed bill introduces more stringent rules for employers regarding wages and recruitment, prioritizing H-1B visas for individuals with STEM degrees and imposing stricter penalties for wage violations. While the L-1 visa allows multinational companies to transfer existing employees to their U.S. offices, the new legislation aims to close loopholes by limiting outplacement, enhancing oversight, and incorporating wage and displacement safeguards.
Senators Grassley and Durbin highlighted concerns about American workers being laid off while companies hire foreign workers at lower wages. They stated that the bill seeks to combat visa fraud and abuse, addressing what they describe as a “broken” immigration system. This initiative aligns with the Trump administration’s broader agenda to implement stricter immigration policies.
The potential financial strain on U.S. companies could increase, especially with the existing H-1B fee hike, potentially making it less attractive to hire foreign talent. Furthermore, the Trump administration’s plan to revise the H-1B lottery system, favoring higher-skilled and higher-paid foreign workers, could negatively impact applications from many Indian professionals.
Nicole Gunara, Principal Immigration Attorney at Manifest Law, noted that these changes would likely increase compliance costs for companies that utilize lower wage levels or contract-based staffing. She added that for L-1 visas, the bill aims to prevent misuse and strengthen protections for American workers.
Experts from the Heritage Foundation suggest that the proposed overhaul, which favors high-wage earners, might significantly affect entry-level workers from India and China who typically hold the majority of H-1B positions. Immigration lawyers anticipate that thousands of Indian professionals in the U.S. on work visas could be impacted by these policy shifts.
However, Gunara cautioned that it’s still early to definitively predict the bill’s impact, noting that historically, only a small percentage of proposed immigration bills become law. The U.S. Commerce Secretary has also indicated that significant changes to the H-1B visa process are anticipated by February 2026, as the country seeks to prioritize domestic talent.