Monday, October 31, 2005

Senate Committee Increases H-1B Visa Cap by 30,000

Earlier this month, the Senate Judiciary Committee approved a proposal to increase the annual cap on H-1B visas by up to 30,000 for a five-year period. The measure would impose a new $500 fee on those visas in addition to current fees. The H-1B program allows employers to hire highly skilled foreign workers for temporary positions.
The original proposal, which called for an annual increase of 60,000 visas for the next five years, was amended by the committee in an effort to ensure broader support when the package eventually heads to the Senate floor. The final proposal also imposes a new $750 fee for L-1 visas, which are granted to multinational companies to temporarily transfer foreign employees to their U.S. offices.
As expected, the committee’s approval of the H-1B proposal met with cheers from the business community, which has been lobbying for years to convince lawmakers that the current cap of H1-B visas, which is 65,000 per year, is too low. Meanwhile, opponents continue to question the need for an increase in the annual cap.
The committee’s proposal and one in the House of Representatives are designed to meet obligations under a budget agreement to find $60 million in savings for fiscal year 2006. The proposals will be reported to the Budget committees in the House and the Senate, respectively, and the Budget committees will include the proposals in a larger budget reconciliation package this year.
Toby Malara www.americanstaffing.net

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