SENATE REPUBLICANS WITHDRAW BILL THAT WOULD HAVE RAISED H-1B CAP TO 200,000

Senator Phil Gramm (R-TX) has withdrawn S. 1440, the New Workers for Economic Growth Act, which would have raised the annual cap on H-1B visas to 200,000 during 2000, 2001 and 2002.  According to Gramm, the bill just cannot be passed this year, but he and Trent Lott (R-MS), one of the bills co-sponsors, plan on introducing similar legislation again in the near future.

 The 1999 quota for H-1B visas, 115,000, was reached in June, three months before the end of the fiscal year.  As of October 1, 1999, the 115,000 visas for fiscal year 2000 will become available.  During 2000, the annual quota will be 107,500, after which the number will return to 65,000, the limit before the passage of the American Competitiveness and Workforce Improvement Act of 1998. 

The proposed bill would have certainly faced an uphill battle, with stiff opposition coming from labor unions and the Chairman of the House Immigration Subcommittee, Lamar Smith (R-TX).  However, with the presidential elections next year, the H-1B issue will undoubtedly be a hot topic.  It is an important issue for technology firms, who are very generous with campaign contributions.  Universities also are deeply concerned since faculty members will miss the state of the academic year.  During the 1998 congressional elections, they gave nearly $6 million to candidates, and already this year Gov. Bush, the Republican frontrunner for President has received $380,000 and Vice President Gore $178,000 from high-tech firms.

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