Proposed Changes to H-1B Visa Program by Sen. Tim Sheehy

On Thursday, Sen. Tim Sheehy, a Republican from Montana, introduced legislation aimed at suspending new H-1B visas for three years. After this period, the program would resume but with a significantly reduced annual cap of 25,000 visas, a mandated minimum salary of $200,000, and other limitations to support American workers while addressing concerns over fraud and national security.

This proposed bill goes beyond just H-1B visas. It would also end employment authorization for certain foreign students and exchange visitors, prevent nonimmigrants and temporary residents from seeking permanent residency while in the U.S., and restrict federal agencies from hiring nonimmigrant workers both directly and through contracts. Details of the legislation were provided exclusively to a news outlet.

“The H-1B program was originally created to fill labor shortages in specialized positions, not to replace qualified American workers with less expensive foreign labor,” Sheehy remarked, reiterating that issuing work permits shouldn’t facilitate the downsizing of U.S. employees when there’s local talent available.

He added, “My bill, the H-1B Abuse Elimination Act, prioritizes American workers by reinforcing the original intent of the program, closing loopholes that allow for misuse, and enhancing safeguards while emphasizing national security.”

The legislation would place a three-year halt on issuing H-1B visas. Following this, it would limit the number of H-1B applications to 25,000 annually, replacing the current lottery system with one that prioritizes higher-paying job offers.

Additionally, the bill aims to shorten the maximum H-1B employment term from six years to three years and require companies to confirm a shortage of qualified domestic workers before hiring a visa holder. Employers would also need to show that hiring the foreign worker wouldn’t negatively impact the salaries or working conditions of current American employees and pledge not to lay off any workers in the year leading up to the application.

To proceed with the application for an H-1B worker, employers would need to provide a salary of at least $200,000 a year and pay a fee of $100,000 for the initial status or for permission to switch employers.

Furthermore, the bill would clarify the definition of H-1B-dependent employers, eliminate dual purposes for visa holders, and prevent concurrent employment as well as third-party staffing agencies from sponsoring H-1B workers.

Legal selections that allow H visa holders to come with spouses and children would also be removed, alongside measures banning federal agencies from hiring nonimmigrants directly or through contractors.

This proposal aims to eliminate employment authorization for F-1 and M-1 international students and J-1 exchange visitors, making it generally impossible for temporary residents to apply for permanent residency in the U.S. The bill also seeks to restrict transitions from one nonimmigrant status to another.

There would be limited exceptions for individuals who meet certain criteria related to immigrant visas or who are refugees, asylum seekers, or conditional permanent residents.

A summary of the bill notes that the H-1B program has deviated from its initial purpose, transforming into a “large-scale workforce replacement pipeline.” It mentions troubling instances of American employees being laid off while H-1B employment persisted, including cases where they were required to train their foreign replacements. Additionally, the report highlights concerns about foreign contract workers in sectors such as artificial intelligence and defense, citing risks related to data security and foreign influence.

Supporters of the bill include the Immigration Responsibility Project and the Federation for American Immigration Reform.

Recently, Vice President J.D. Vance announced that the Department of Labor has begun various investigations into suspected H-1B fraud, indicating a focus on issues like fraudulent applications and wage exploitations that aim to undermine American workers.

Vance pointed out that while the H-1B program was intended for skilled professionals, it is often misused to drive down wages, stating, “American jobs should go to American workers, not foreign fraudsters.” The department is encouraging both U.S. and foreign workers to report any suspected coercive practices or fraud.

Sheehy emphasized his support for legal immigration but expressed concerns about abuses within the system. Earlier this year, he mentioned the U.S. should welcome hardworking individuals who aim to contribute positively, while also advocating for stricter measures against those who exploit the system or act against national interests.

He also raised issues surrounding birthright citizenship and highlighted the need for an immigration system that is not vulnerable to misuse.