H-1B Visa News: New US Bill Proposes 3-Year Ban on Fresh H-1B Visas, May Impact Indian Professionals

US Senator Tim Sheehy of Montana has introduced legislation in the US Senate that would suspend the issuance of new H-1B visas for three years and permanently codify the controversial 100,000 USD fee for new H-1B applications, a move that could significantly impact Indian professionals who form the largest share of H-1B beneficiaries. "The H-1B programme was created to address workforce shortages for specialised, difficult-to-fill positions, not to displace qualified, hardworking Americans with cheaper, foreign labour," Sheehy said in a statement on Thursday. "My legislation, the End H-1B Abuse Act, restores the programme to its original intent and puts American workers first by closing loopholes that incentivise abuse, strengthening guardrails and prioritising our national security interests," he added.

The proposed legislation, titled the American Workforce Protection Act of 2026, was introduced by Senator Jim Banks of Indiana. If enacted, the bill would temporarily halt the issuance of new H-1B visas while retaining limited exceptions for renewals, extensions and applicants deemed essential to US national interests. Meta Layoffs: H-1B Visa Workers Get Court Relief Amid Deportation Fears.

What The Bill Proposes

The proposal also seeks to write into law the 100,000 USD H-1B application fee that was introduced by President Donald Trump through a presidential proclamation in September 2025. That fee has been tied up in court after several Democratic-led states challenged its legality.

According to reports, the legislation argues that a temporary pause would allow Congress and federal agencies to review whether the H-1B programme adequately protects American workers and prevents misuse by employers. It also proposes directing revenue generated from the fee toward workforce development and training programmes for US citizens.  Indian H-1B Workers May Be Affected as US Bill Seeks to End Green Card Route and Scrap OPT Programme.

Bill Follows Court Setback Over H-1B Fee

The legislation comes just two days after the US Court of Appeals for the First Circuit declined to reinstate the Trump administration's 100,000 USD H-1B fee while legal proceedings continue. The appeals court upheld a lower court's finding that the administration likely exceeded its authority, since such a fee amounted to a tax that only Congress can authorize.

By introducing the new bill, supporters are seeking congressional approval for the fee, potentially addressing the legal objections raised by the courts.

Why This Matters For India

The H-1B visa programme is widely used by US technology companies and other employers to recruit highly skilled foreign professionals, with Indian nationals consistently accounting for the largest share of beneficiaries. A three-year suspension on new visas, combined with a permanent six-figure application fee, would directly affect thousands of Indian IT professionals, engineers and prospective applicants who rely on the programme each year to work in the United States.

Indian technology firms and US companies that depend on Indian talent for specialised roles could also face disruption in hiring pipelines if the bill becomes law, given how central the H-1B route has been for moving skilled Indian professionals into the American workforce.

Road Ahead For The Legislation

The bill, however, faces significant hurdles before becoming law. It must pass both the Senate and the House of Representatives before reaching the president's desk. Similar proposals aimed at sharply restricting the H-1B programme have struggled to secure enough support in Congress in the past.

If enacted in its current form, the measure would represent one of the most sweeping changes to the H-1B programme in decades, potentially affecting thousands of employers and prospective foreign workers, particularly from India and China.

(The above story first appeared on LatestLY on Jul 26, 2026 12:32 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).