Bipartisan Push to Tighten H-1B and L-1 Rules for Greater Oversight

(IOWA (CHUCK GRASSLEY IS FROM IOWA)) Senators Chuck Grassley and Dick Durbin are reviving a high-profile push to overhaul the H-1B and L-1 visa programs, aiming to curb what they call long-running loopholes that allow some companies to replace U.S. workers and depress wages. The bipartisan reform bill, reintroduced in the Senate Judiciary Committee, seeks stricter rules on wages and recruitment, broader enforcement authority for the Department of Labor, and a sharper, tighter definition of “specialty occupation.” It also targets certain L-1 visa practices—especially “new office” transfers—and would shift visa selection to favor applicants with advanced STEM degrees.

As of October 1, 2025, the bill remains in committee and has not become law. Backers frame the plan as a course correction to protect American jobs without blocking true skill needs, while critics warn the package could slow hiring, raise costs, and deter global talent that fuels research and growth across the United States 🇺🇸.

Central Claims and Political Framing

Reform supporters argue parts of the current system reward high-volume filings and outsourcing business models rather than genuine skill shortages. Senator Grassley — a long-time skeptic of how large employers use guestworker programs — says H-1B and L-1 were intended to fill gaps when employers cannot find qualified U.S. workers, not to cut payroll expenses.

Senator Durbin highlights worker-protection concerns: many foreign workers on temporary visas are tied to a single employer, which limits job mobility and reduces their ability to push back when wages or conditions fall short.

The timing underscores how employment-based immigration sits at the crossroads of job protection and economic growth. The bill follows a presidential proclamation by President Trump that adds a one-time $100,000 surcharge on each new H-1B petition, signaling a desire to discourage mass filings while raising revenue. Reformers say the fee could deter bulk submissions that flood the lottery and crowd out employers with genuine needs; business groups worry the cost and tighter rules may reduce hiring in areas with true shortages (tech, healthcare, advanced manufacturing).

Why Supporters Point to Recent Trends

Supporters highlight workforce patterns where, during tech-sector layoffs, some top employers continued high-volume H-1B filings. Lawmakers and labor advocates see this as evidence the program can be used even while domestic employees face cuts. Analysis by VisaVerge.com shows long-standing concerns about wages and job replacement, especially where third-party placement and offshoring models staff large projects.

Key Provisions in the Reform Bill

The bill would shift the system from largely attestations and post-hoc checks toward stricter front-end review and stronger enforcement. Main elements include:

• Stricter wage and recruitment steps
  • Employers must post H-1B-eligible roles on a searchable Department of Labor website before filing.
  • Listings would be open to U.S. workers and laid-off H-1B holders seeking to remain employed.
• Expanded enforcement muscle
  • The Department of Labor could hire 200 more enforcement staff and impose fines or debarbad actors.
• Narrower “specialty occupation” standard
  • Clarifies that H-1B jobs must truly require at least a bachelor’s degree, narrowing broader interpretations.
• L-1 “new office” checks
  • Extra scrutiny for “new office” petitions and closer verification of foreign affiliate structures to prevent shell setups.
• Visa prioritization for advanced STEM degrees
  • Selection would favor applicants with advanced STEM credentials, directing limited visas toward high-impact skill sets.
• Meaningful penalties for abuse
  • Fines and debarment (temporary bans) for companies that break wage rules or misuse the programs.

These changes would reshape employer planning cycles, especially in software, chip design, biotech, and consulting firms that place contractors at client sites.

Legislative Status and Implementation Timeline

• The bill is currently at the committee level in the Senate and has not reached the floor for a vote.
• Path to law: committee markup → full Senate vote → House agreement → White House action.
• Building out new Department of Labor staff and enforcement tools would take time; employers should plan for a runway of months or longer from enactment to enforcement.

The $100,000 H-1B Surcharge

President Trump’s one-time $100,000 surcharge on each new H-1B petition is seen by reform advocates as a short-term brake on mass filings. Opponents—especially small and mid-sized companies—say the sudden charge hits smaller budgets hardest and may force firms to skip the lottery even with legitimate needs. The surcharge also raises equity questions between cap-subject employers and cap-exempt entities (e.g., some research institutions and universities).

Where to Find Current Rules

For authoritative details on current H-1B program rules (not the proposed changes), USCIS maintains a public page: USCIS: H-1B Specialty Occupations. The Grassley-Durbin bill, if enacted, would modify several program aspects, but until Congress acts, USCIS guidance reflects the system in place today.

Political Landscape and Industry Responses

• The bill has bipartisan cosponsors: Tommy Tuberville, Richard Blumenthal, and Bernie Sanders, reflecting a blend of worker fairness, wage focus, and industrial policy considerations.
• Opposition and caution come from universities, labs, startups, and major firms in cloud, AI, and biomedical research, who argue that strict caps, tight definitions, and fees could push talent and breakthroughs abroad.
• Labor advocates back posting rules and increased enforcement staff as critical to raising wages and reducing abuse.
• Business groups warn that public postings might slow hiring or reveal proprietary plans; they also emphasize the need for flexibility in L-1 transfers for rapid U.S. rollouts.

Consensus points:
– Most lawmakers agree wage abuse must be addressed.
– Many also acknowledge foreign professionals keep critical systems running—especially in smaller markets where recruiting is hard.
– The challenge: target misuse without choking off necessary skills and investment.

Committee Markup: Why Details Matter

The next important step is a formal committee markup, where senators can propose and vote on amendments. Small details matter:
– How wages are measured
– Definitions of job duties and “specialty”
– Posting requirements

Even minor edits can affect denial rates, request-for-evidence trends, and employer behavior.

What the Bill Would Mean for Workers and Employers

For U.S. workers:
– Job postings would give local candidates and laid-off H-1B professionals clearer access to roles before petitions file.
– Increased enforcement (200 investigators) could result in more penalties for underpayment or false claims.

For foreign professionals:
– Tighter wage rules and public postings may reduce pressure to accept low offers.
– Prioritization for advanced STEM degrees benefits highly qualified candidates.
– Stricter definitions and closer review could increase denial risk for edge cases, third-party placements, or roles that barely fit “specialty” profiles.

For employers, expect:

1. More upfront compliance work
   • Public postings, stronger wage documentation, and proof that a role requires a bachelor’s degree.
2. Greater scrutiny of third-party placements
   • Tighter contracts and clearer day-to-day oversight evidence for offsite roles.
3. L-1 “new office” timing changes
   • Deeper affiliate reviews, possible site visits, and heavier emphasis on business plans and payroll.
4. Budget impacts
   • The $100,000 surcharge could raise immediate hiring costs, particularly for high-volume filers.
5. STEM-based selection edge
   • Research-heavy employers may benefit; firms using broader talent pools could face constraints.

None of these proposals are in effect yet; current H-1B and L-1 processes remain governed by USCIS and the Department of Labor rules now.

Practical Steps for Employers and Visa Holders

Employers should:
– Map roles to precise degree fields and duties.
– Benchmark wages to local market and level.
– Draft neutral, public-facing job posts that protect proprietary plans.
– Build documentation systems ready for audits.
– Review L-1 affiliate structures, funding flows, and “new office” plans.

Visa holders should:
– Keep detailed records of job duties, pay, and performance.
– Act quickly after a layoff to explore other roles, particularly if public postings become required.
– Note that those with advanced STEM degrees may gain selection advantages.

Broader Economic and Legal Implications

• Stricter wage floors and posting rules may support local training pipelines and graduate programs.
• Universities and research labs could benefit from a high-skill tilt but also face fee and compliance pressures on smaller departments.
• Startups may find Ph.D.-level hiring easier, but compliance and filing costs could strain cash-poor firms.
• A sweeping bill will likely invite legal challenges focused on how agencies interpret key terms like “specialty occupation,” posting requirements, and penalties. Courts will assess whether agencies followed statute and provided fair notice.

Next Steps and How to Stay Informed

• Track committee hearings, markups, and amendments closely—this is where language is sharpened.
• Monitor official agency notices and the bill’s movement through Congress.
• Expect continued advocacy from industry groups and labor organizations; final language will reflect a tug-of-war.
• For now, continue following existing USCIS and Department of Labor rules and prepare documentation and compliance plans in case reforms pass.

Key takeaway: The Grassley-Durbin bill is a live, bipartisan proposal designed to tighten oversight and prioritize advanced STEM skills, but it remains in committee and could change substantially. Employers and workers should prepare, keep records, and watch for committee action and any signs of a floor vote.