US Senate Bill Proposes 3-Year H-1B Visa Pause and $100k Fee

Republican Senator Tim Sheehy of Montana has introduced the End H-1B Abuse Act in the United States Senate. The proposed bill seeks a comprehensive three-year pause on the issuance of new H-1B visas and aims to codify a standardized $100,000 petition fee. Sheehy argued that the non-immigrant visa program was originally created to address critical skill shortages rather than displace qualified American workers with lower-cost foreign labor. The proposed legislation would also sharply reduce annual visa caps to 25,000, raise the minimum salary threshold to $200,000, and eliminate Optional Practical Training programs for international graduates.

The legislative initiative follows a key ruling by the First US Circuit Court of Appeals in Boston. The federal court rejected a motion by the Donald Trump administration to revive a $100,000 H-1B visa fee that was previously imposed via executive proclamation. District Judge Leo Sorokin ruled that the executive fee constituted an unlawful tax introduced without statutory approval from the US Congress. The proposed Senate bill attempts to override judicial rejection by establishing the fee directly in federal statute, while also ending dual intent provisions and preventing visa holders from bringing dependents.

The proposed legislation threatens significant operational disruption for Indian technology services companies and skilled professionals. Indian nationals historically account for the vast majority of annual H-1B visa approvals in software development, engineering, and digital services. Indian IT firms rely heavily on the non-immigrant visa framework to deploy specialized technical talent for on-site client projects across the United States. Industry analysts expect vigorous opposition from major US technology conglomerates and business coalitions as the Senate reviews the restrictive immigration proposals.