Republican Senator Tim Sheehy of Montana has introduced the End H-1B Abuse Act (S.5097) in the US Senate on July 24, proposing sweeping changes to the H-1B visa programme. According to reports from Business Standard, the bill has been referred to the Senate Judiciary Committee and represents a comprehensive attempt to reshape the visa system. Sheehy argues that the H-1B programme has drifted from its original purpose of filling genuine skill shortages and is instead being used to replace American workers with lower-cost foreign labour.
The legislation proposes several major modifications to the current H-1B framework. As reported by Business Standard, the bill would pause new H-1B visas for three years before restarting the programme under stricter rules. Additionally, it would permanently establish a $100,000 fee for each H-1B petition, effectively codifying the Trump administration's policy into federal law. The proposal would replace the random lottery with a wage-based selection system to prioritise employers offering higher salaries, and would prohibit third-party staffing agency models and concurrent employment arrangements.
The $100,000 fee provision faces significant legal hurdles despite the proposed legislation. According to Business Standard, in June, US District Judge Leo Sorokin ruled that the administration lacked congressional authority to impose the fee, calling it an unlawful tax. The First Circuit Court of Appeals declined the administration's request to pause that ruling, leaving the district court's decision in place while the appeal continues. Passing legislation would give Congress explicit authority for such a fee, potentially overcoming the legal problem identified by the court.
The proposed changes could significantly affect Indian professionals and students. As reported by Business Standard, India is consistently the largest source of H-1B workers, particularly in technology, engineering, healthcare and finance. The bill would eliminate work authorisation programmes similar to Optional Practical Training (OPT) for foreign students, potentially making it harder for H-1B workers to transition to permanent residency. Additionally, the proposal would prevent H-class visa holders from bringing dependants, representing a major departure from current policy that allows spouses and children to accompany H-1B workers under H-4 visas.
The bill's passage remains uncertain as it has only been introduced in the Senate and referred to committee. According to Business Standard, for the legislation to become law, it would need to pass the Senate, pass the House of Representatives, and be signed by the President. Many immigration bills never advance beyond committee, and substantial amendments are common during the legislative process. At present, there is no certainty that this proposal will become law in its current form—or at all. This legislative effort reflects ongoing debates in the U.S. about immigration policy, labor market protection, and national security interests.
