Grassley, Durbin Revive Bipartisan Bill to Tighten H-1B, L-1 Visas
By Lalit K Jha
Washington, Sept 30: Two senior senators are renewing a bipartisan push to crack down on alleged abuse of the H-1B and L-1 visa programs, targeting tech giants and outsourcing firms they say have side-lined American workers while relying on foreign labour.
Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Ranking Member Dick Durbin (D-Ill.) reintroduced legislation on Monday that would overhaul the U.S. process for issuing temporary work visas, intensifying scrutiny on companies accused of exploiting the system.
The H-1B and L-1 Visa Reform Act of 2025 aims to increase wage requirements, impose stricter recruitment obligations, and expand enforcement powers for federal agencies, according to media reports, the release said. The measure comes amid mounting political backlash over mass layoffs in the tech sector, paired with continued hiring of foreign professionals.
"Congress created the H-1B and L-1 visa programs as limited pathways for businesses to acquire top talent when it can't be found at home," Grassley said in a statement. "But over the years, many employers have used them to cut out American workers in favour of cheap foreign labour. Congress must step in again to bring integrity back to these programs and restore dignity for American and foreign workers."
Durbin, who has pressed for reforms since 2007 alongside Grassley, accused companies of gaming the system. "Major companies are laying off thousands of American workers while filing thousands of visa petitions for foreign workers at depressed wages and poor working conditions. Congress must step in to protect American workers and fix our broken immigration system," he said.
See Also: Impact of H-1B visa hike to be minimum on Indian IT firms: Report
The bill has backing from across the political spectrum. Republican Sen. Tommy Tuberville of Alabama, Democratic Sen. Richard Blumenthal of Connecticut and independent Sen. Bernie Sanders of Vermont signed on as original cosponsors.
Stricter Oversight
The legislation would tighten rules for companies seeking to hire foreign workers. Employers would be required to post job openings on a new Department of Labour (DOL) website at least 30 days before petitioning for visas, giving displaced workers or job seekers first visibility.
The Department of Labour would also be authorized to charge fees on labour condition applications and hire 200 additional staff to investigate fraud and enforce compliance. Employers would face steeper penalties for wage violations — up to $25,000 for repeat offenders — and could be barred from the program for displacing U.S. workers.
The bill gives DOL subpoena power for the first time in H-1B investigations and mandates annual compliance audits, including for large employers with a significant share of H-1B workers.
Redefining "Speciality Occupation"
One of the most significant changes would amend the definition of a "speciality occupation." Employers would have to demonstrate that an H-1B worker holds a bachelor's degree or higher in a field directly related to the job, closing loopholes that have allowed for broader interpretations.
The bill proposes to prioritize H-1B visas for applicants with advanced STEM degrees from U.S. universities, graduates in shortage occupations, and employers that pay top-tier wages.
See Also: The H-2A Visa Trap
L-1 Visa Reforms
For multinational companies using L-1 visas to transfer employees, the legislation sets new restrictions. Employers could not displace U.S. workers or outsource L-1 employees without a waiver. Petitions for new offices would face tighter evidentiary requirements, including proof of adequate business plans, physical premises, and financial stability.
The Department of Homeland Security and the State Department would be required to cooperate in verifying foreign affiliates. In contrast, employers would be required to provide wage data to federal agencies, according to the bill's authors.
Context and Pushback
The H-1B and L-1 visa programs have been flashpoints in U.S. immigration debates. Originally designed to help companies fill critical skills gaps, the program is capped at 85,000 new H-1B visas per year. Critics argue that large outsourcing firms have abused the programs to undercut wages and replace American staff.
At the same time, the programs are crucial for technology and research companies that say they cannot find enough qualified workers domestically. Industry groups have historically resisted efforts to restrict access, warning of talent shortages and potential harm to U.S. competitiveness.
The latest reform effort follows letters Grassley and Durbin sent last week to 10 major employers — including Amazon, Google and Meta — demanding explanations for their reliance on H-1B workers despite recent layoffs.
Whether the bill gains traction remains uncertain. Previous versions have stalled in Congress despite bipartisan support, in part due to lobbying from the business community.
Still, lawmakers say momentum is building. "There's bipartisan acknowledgement that these programs ought to be returned to their intended purpose," Grassley said. "Our bill would make that shared goal a reality."
[5WH/VS]
This report is from 5WH. NewsGram holds no responsibility for its content.
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