'Will price out techies': New US visa bill could gut Indian access to H‑1B, L‑1 jobs

Indian professionals could soon face tougher hurdles to work in the U.S., as a bipartisan bill introduced in the U.S. Senate proposes sweeping restrictions on the H‑1B and L1 visa programs—pathways used by thousands of Indian tech workers and executives.

The H‑1B and L‑1 Visa Reform Act, introduced by Republican Senator Chuck Grassley and Democratic Senator Dick Durbin, aims to clamp down on alleged visa abuse by tightening wage standards, raising compliance costs, and adding new hiring restrictions. The bill also seeks to prioritize foreign workers with STEM degrees and impose higher penalties for wage violations.

“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,” Senator Durbin said, calling for urgent immigration system reform.

If passed, the bill would reshape how U.S. firms—particularly large IT service providers like Infosys and Tata Consultancy Services—hire and deploy skilled Indian workers. Over 70% of approved H‑1B visas currently go to Indian nationals, according to U.S. data.

For the L‑1 visa, which allows intra-company transfers of executives and specialized staff, the proposed legislation closes existing loopholes, limits outsourcing, and strengthens wage protections. These changes, experts say, could make L‑1 use costlier and force companies to shift to direct employment models.

“This would raise the bar for compliance and could price out companies that depend on contract-based staffing or lower wage levels,” Nicole Gunara, principal immigration attorney at Manifest Law, was quoted as saying in an HT report. 

She added that the bill's reach could reshape hiring models across the board.

The proposal arrives on the heels of President Trump’s recent announcement of a $100,000 fee for H‑1B applications, further escalating costs. Trump has also backed plans to rejig the H‑1B lottery to prioritize higher salaries and launched Operation Firewall, an enforcement campaign to root out fraud in work visa programs.

Despite the aggressive push, the bill’s passage remains uncertain—only 5% of the 300+ immigration-related bills introduced between 2015 and 2024 have become law.