S 2928119th CongressIn Committee

A bill to amend the Immigration and Nationality Act to reform and reduce fraud and abuse in certain visa programs for aliens working temporarily in the United States, and for other purposes.

Introduced: Sep 29, 2025

Immigration

Standard Summary

Comprehensive overview in 1-2 paragraphs

The H-1B and L-1 Visa Reform Act of 2025 is a comprehensive package of amendments to the Immigration and Nationality Act aimed at reducing fraud, abuse, and displacement in the H-1B (temporary skilled workers) and L-1 (intracompany transferee) visa programs. It would tighten employer requirements, enhance transparency, strengthen enforcement by the Department of Labor (DOL) and other agencies, and reorganize how H-1B petitions are allocated. Key changes include higher and more verifiable wage standards, required online postings of open positions, stricter nondisplacement and recruitment rules, expanded enforcement tools (including subpoena authority and broader penalties), new funding mechanisms for administration and enforcement, and added protections for workers (including L-1 nonimmigrants). The act also attempts to limit visa use that can substitute for American workers and to ensure better information flow to applicants and employees. The bill would apply to petitions filed after enactment. In short, the bill seeks to make the H-1B and L-1 programs more transparent, accountable, and protective of U.S. workers, with tougher penalties for violations and a more strategic, merit-based approach to visa issuance.

Key Points

1Higher, verifiable wage requirements for H-1B employers
2- Wages must be at least the highest of local prevailing wage, area median wage, or median wage for skill level 2, based on the latest data.
3- Working conditions must not adversely affect U.S. workers.
4Public online job postings and more detailed job disclosures
5- Employers must post detailed descriptions of each H-1B position on an internet site for at least 30 days, including wages, terms, minimum qualifications, and application process.
6Expanded nondisplacement protections and recruitment rules
7- 180-day look-back windows before and after placement to ensure U.S. workers are not displaced; on-site or virtual training periods are excluded from the window.
8- Large employers (e.g., 50+ US employees) face caps on the proportion of H-1B and L nonimmigrants relative to total staff.
9- Employers may need to submit W-2 wage statements for H-1B workers for the relevant period.
10Reworked H-1B allocation order
11- New priority sequence for petitions, prioritizing:
12- H-1B holders with U.S. STEM advanced degrees from accredited institutions
13- Employers paying median wages at higher skill levels
14- Advanced-degree holders from other programs
15- Higher wage levels and broader categories, with specific emphasis on “good corporate citizenship” criteria (E-Verify participation, no federal immigration or labor law violations, high historical approval rates, and prior use of labor petitions)
16- Remaining petitions
17- Clear definition of “field of science, technology, engineering, or mathematics” using Department of Education classifications.
18Specialty occupation degree requirements
19- Specialty occupations will require an actual U.S. bachelor’s degree or higher directly related to the occupation, or an equivalent foreign degree, unless licensure is required and fulfilled.
20Labor Condition Application (LCA) fees and funding
21- Employers must pay a reasonable processing fee for LCAs.
22- Fees would be deposited into a dedicated H-1B Administration, Oversight, Investigation, and Enforcement Account to fund administration and enforcement efforts.
23DOL enforcement tools and procedures
24- Expanded subpoena authority for DOL, plus injunctive relief and specific performance to ensure compliance.
25- Procedures for investigations expanded and made more transparent, including audits of employers employing H-1B workers and annual compliance audits.
26- 24/7 complaint hotline; annual public executive summaries of audits.
27Stricter penalties and worker protections
28- Higher penalties for violations, including per-violation fines and liability for lost wages and benefits to harmed employees.
29- Provisions to protect employees who disclose violations or cooperate with investigations, including protections against retaliation and provisions related to termination and status in certain cases.
30Disclosure, information sharing, and transparency
31- Information sharing between USCIS and the Secretary of Labor to identify noncompliance and trigger investigations.
32- Required plant-wide and site-specific data to be made public where appropriate, with redactions to protect sensitive information.
33Increased Department of Labor (DOL) staffing and funding
34- Authorization to hire up to 200 additional DOL employees to administer and enforce nonimmigrant programs, funded through the H-1B fee account.
35B-1 visas in lieu of H-1B
36- Elimination or narrowing of B-1 visa usage for performing services that would require H-1B status, to prevent visa-mleed use as a work authorization substitute.
37Posting and wage-system oversight
38- A new public website for posting positions and a GAO review within a year to evaluate wage classification and wage-determination systems for accuracy and relevance.
39Information provided to H-1B and L-1 nonimmigrants
40- Visa applicants would receive information about employer obligations, rights under federal law, and how to contact relevant agencies; similar information would be provided to those already in the U.S. seeking status changes.
41Application applicability and effective date
42- The amendments apply to petitions and applications filed on or after enactment.

Impact Areas

Primary affected groups- U.S. workers in the labor market (to whom displacement protections and wage standards apply)- H-1B and L-1 nonimmigrant workers (new protections, information, and potential status implications)- Employers who hire H-1B or L-1 workers (new obligations, posting requirements, wage obligations, and increased compliance costs)- Institutions of higher education (limited changes to foci for H-1B staffing and potential incentives tied to advanced degree workers)Secondary affected groups- Department of Labor and Department of Homeland Security (increased enforcement, audits, and coordination)- U.S. taxpayers and beneficiaries of public programs (through potential changes in enforcement costs and labor market effects)- U.S. employers with foreign subsidiaries or outsourcing arrangements (new waiver provisions and anti-outsourcing safeguards)Additional impacts- Changes in visa allocation could affect global talent flows, access to specialized skills, and the competitiveness of U.S. employers in certain STEM fields.- Increased transparency and audits may raise administrative burden and compliance costs for employers but could improve wage fairness and worker protections.- The creation of a dedicated funding account for H-1B administration may affect how funds are allocated for enforcement and oversight.- The bill could influence the strategic use of E-Verify by employers seeking favorable visa petition considerations.

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