Immigration: Legislative Issues on Nonimmigrant Professional Specialty (H-1B) Workers

Publication Date: February 2004

Publisher: Library of Congress. Congressional Research Service

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Research Area: Labor; Population and demographics

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Abstract:

The economic prosperity of the 1990s fueled a drive to increase the levels of employment-based immigration. Both the Congress and the Federal Reserve Board then expressed concern that a scarcity of labor could curtail the pace of economic growth. A primary response was to increase the supply of foreign temporary professional workers through FY2003. Now that the H-1B annual numerical limits have reverted to 65,000, the 108th Congress is weighing whether to extend the increases as the admissions approach the limit. Certain labor market protections aimed at firms whose workforce is more than 15% H-1B workers also expired at the end of FY2003. The inclusion of H-1B provisions in free trade agreements (P.L. 108-77 and P.L. 108-78) as well as national security concerns are sparking debate.

The 106th Congress enacted the American Competitiveness in the Twenty-first Century Act of 2000 (S. 2045, P.L. 106-313) with bipartisan support in October 2000. That law raised the number of H-1B visas by 297,500 over three years. It also made changes in the use of the H-1B fees for education and training, notably earmarking a portion of training funds for skills that are in information technology shortage areas. P.L. 106-311 increased the H-1B fee, authorized through FY2003, from $500 to $1,000. The 107th Congress enacted provisions that allow H-1B workers to remain beyond the statutory limits if their employers petitioned for them to become legal permanent residents.

In FY2002, the almost half (49%) of newly arriving H-1B workers had Bachelor's degrees, an additional 29% had Master's degrees, and 14% had doctorates. Only a quarter (25%) reported occupations in computer-related fields, down from over half in FY2001. While India sent 45% of the newly arriving H-1B in FY2001, it only sent 20% in FY2002. The median annual compensation for newly arriving H-1B workers was $45,000 in FY2002, down from $50,000 in FY2001.

Those opposing any further increases or easing of admissions requirements assert that there is no compelling evidence of a labor shortage in these professional areas that cannot be met by newly graduating students and retraining the existing U.S. work force. They argue further that the education of U.S. students and training of U.S. workers should be prioritized instead of fostering a reliance on foreign workers.

Proponents of current H-1B levels say that the education of students and retraining of the current workforce is a long-term response, and they assert that H-1B workers are essential if the United States is to remain globally competitive. Some proponents argue that employers should be free to hire the best people for the jobs, maintaining that market forces should regulate H-1B visas, not an arbitrary ceiling.

On July 24, 2003, Senator Christopher Dodd and Representative Nancy Johnson introduced the USA Jobs Protection Act of 2003 (S. 1452/H.R. 2849), which would make several changes to current law on H-1B visas. Two bills (H.R. 2235 and H.R. 2688) have been introduced that would suspend or eliminate H-1B visas. This reports tracks legislative activity and will be updated as needed.