3-year H-1B visa pause, $100,000 fee: What's in the new US Senate bill

US Senator proposes sweeping H-1B overhaul: Key changes explained

A Republican senator has introduced a bill in the US Senate that would dramatically reshape the H-1B visa programme if enacted. The proposal, called the End H-1B Abuse Act, seeks to halt the issuance of new H-1B visas for three years before restarting the programme under stricter rules. It would also write into law the Trump administration's controversial $100,000 H-1B petition fee, which a federal court recently struck down.

 

"The H-1B program was created to address workforce shortages for specialized, difficult-to-fill positions – not to displace qualified, hardworking Americans with cheaper, foreign labor. We shouldn’t be issuing work permits that make it easier to undercut American workers when we have the talent right here at home,” said Senator Sheehy. “My legislation, the End H-1B Abuse Act, restores the program to its original intent and puts American workers first by closing loopholes that incentivize abuse, strengthening guardrails and prioritizing our national security interests," Sheehy said in a release.

 

What is the bill?

 

The bill (S.5097), introduced by Republican Senator Tim Sheehy of Montana on July 24, has been referred to the Senate Judiciary Committee. At this stage, it is only a proposed law and has not been debated or passed by either chamber of Congress.

 

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.

 

What are the key proposals?

1. Pause new H-1B visas for three years

 

The legislation proposes a three-year halt on the issuance of new H-1B visas. According to the bill's supporters, the programme would resume only after new restrictions and safeguards are implemented.

 

If enacted in its current form, companies would not be able to obtain new H-1B visas during the pause, although the exact treatment of existing H-1B holders would ultimately depend on the final statutory language and any implementing regulations.

 

2. Bring back the $100,000 H-1B fee

 

The bill would permanently establish a $100,000 fee for each H-1B petition, effectively codifying the Trump administration's policy into federal law.

 

That fee, however, is currently in legal limbo.

 

In June, US District Judge Leo Sorokin ruled that the administration lacked congressional authority to impose the fee, calling it an unlawful tax. Last week, 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.

 

3. Replace the lottery with a wage-based system

 

The proposal would permanently eliminate the random H-1B lottery and instead allocate visas using a wage-based selection system.

 

This would prioritise employers offering higher salaries, with the stated objective of ensuring visas go to highly skilled workers rather than lower-cost hires.

 

4. Ban third-party staffing and concurrent employment

 

The legislation would prohibit:

 

• Third-party staffing agency models
• Concurrent H-1B employment (working for multiple employers simultaneously)

•  Supporters argue these practices have contributed to misuse of the programme.

 

5. End "dual intent"

 

Current H-1B rules permit "dual intent", allowing visa holders to work temporarily while also seeking permanent residence (a green card).

 

The bill proposes eliminating this provision, potentially making it harder for H-1B workers to transition to permanent residency.

 

6. Restrict dependants

 

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.

 

7. End OPT-style work authorisation

 

The bill would eliminate work authorisation programmes similar to Optional Practical Training (OPT) for foreign students and certain exchange visitors.

 

OPT currently allows many international students to work in the US after graduation, often serving as a pathway to H-1B sponsorship.

 

8. Bar federal agencies from employing H-class visa holders

 

The proposal would prohibit US federal agencies from sponsoring or employing non-immigrant visa holders.

 

What does this mean for Indians?

 

India is consistently the largest source of H-1B workers, particularly in technology, engineering, healthcare and finance.

 

If the bill were enacted without major changes, it could significantly reduce opportunities for:

 

• Indian IT professionals seeking new H-1B visas
• Indian students hoping to move from OPT to H-1B
• Indian outsourcing and staffing companies that rely on the programme
• Families planning to relocate together under H-1B/H-4 visas.

Will the bill become law? 

Not necessarily.

 

The legislation has only been introduced in the Senate and referred to committee. For it to become law, it would need to:

 

Pass the Senate.

Pass the House of Representatives.

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.