H–1B and L–1 Visa Reform Act of 2025
Sponsored By: Senator Sen. Grassley, Chuck [R-IA]
Introduced
Summary
Reduce fraud and protect U.S. workers. The H-1B and L-1 Visa Reform Act of 2025 would tighten employer duties, raise wage floors and working-condition rules, expand audits and penalties, and restructure H-1B allocations to prioritize U.S. STEM graduates and higher wages.
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- U.S. workers would get stronger displacement protections and higher wage floors for H-1B and L-1 jobs, plus limits on outplacement with a 180-day look-back and look-forward rule for L-1 placements.
- H-1B and L-1 employees would gain transparency and safeguards: employers must provide petition copies on request within 21 business days, DHS and consulates must give beneficiaries a brochure, and terminated L-1 holders get a 90-day window without accruing unlawful presence to depart or seek new status.
- Employers would face public job postings for at least 30 days, required W-2 reporting for visa employees, expanded audits and subpoena authority, and a new fee-funded account that could hire up to 200 Department of Labor enforcement staff.
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 2 benefits, 2 costs, 3 mixed.
Higher pay and protections for H-1B
If enacted, employers would have to pay H-1B workers at least the highest of three official wage measures. The bill would bar replacing U.S. workers during a 180-day window around an H-1B placement. Employers could not place H-1B workers with another employer unless they first get a statutory waiver. The Secretary of Labor would decide waiver requests within seven days. The bill would also ban job ads that say a job is only open to H-1B workers.
Tougher fines and remedies for employers
If enacted, the bill would raise civil fines for visa-related violations and let workers recover lost wages and benefits. Examples in the bill raise some fines to ranges like $5,000 up to $150,000 per violation. For L-1 violations, DHS could block new petitions for at least one year for non-willful violations and at least two years for willful violations. Employers could face significant liability to harmed employees.
H-1B eligibility, selection, and stays
If enacted, the H-1B selection order would favor U.S. STEM graduates, higher-wage petitions, and employers with strong compliance records. The bill would tighten specialty-occupation rules to require a related bachelor’s (or full State licensure). Most H-1B approvals would be for up to three years, with a narrow three-year extension only for certain approved immigrant-petition cases. The bill would also bar using B-1 visitor status to do H-1B work.
More notice and document rights for workers
If enacted, employers would have to give named petition beneficiaries copies of petitions and agency communications within 21 business days. Consular offices and DHS would give applicants a brochure and a copy of the petition when visas or initial petitions are approved. The Department of Labor would make a public H-1B job-posting website and require 30-day job postings. Employers with past H-1B or L-1 workers would have to submit W-2s for periods the agency specifies. The bill would also require annual reports to Congress on H-1B and L-1 filings and employer surveys.
Bigger H-1B audits and fee-funded staff
If enacted, the bill would expand DOL and DHS enforcement powers and require more data sharing. It would set a fee for H-1B filings and deposit fees into a new account to pay for oversight. The fee-funded account could pay for up to 200 new DOL hires. The bill raises audit rates, uses a two-year lookback, and requires a 24/7 complaint hotline.
Limit on firms with many visa workers
If enacted, employers with 50 or more U.S. employees would be limited so H-1B and L-1 workers make up no more than 50 percent of their U.S. workforce. The bill would bar reorganizations meant to evade that limit. This rule applies to petitions filed on or after enactment.
New L-1 rules for transfers and stays
If enacted, new-office L-1 approvals would generally be limited to 12 months and need a business plan, real premises, and proof of funds. The bill would narrow the test for 'specialized knowledge' and limit specialized-knowledge placements at third-party sites to one year unless waived. Employers could not displace U.S. workers in a 180-day window around an L-1 placement. The bill would let qualifying employers use blanket L-1 procedures with expedited adjudication and protect L-1 workers from retaliation and give a 90-day stay after termination in covered cases.
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Sponsors & CoSponsors
Sponsor
Sen. Grassley, Chuck [R-IA]
IA • R
Cosponsors
Sen. Durbin, Richard J. [D-IL]
IL • D
Sponsored 9/29/2025
Sen. Sanders, Bernard [I-VT]
VT • I
Sponsored 9/29/2025
Sen. Tuberville, Tommy [R-AL]
AL • R
Sponsored 9/29/2025
Sen. Blumenthal, Richard [D-CT]
CT • D
Sponsored 9/29/2025
Roll Call Votes
No roll call votes available for this bill.
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