In terms of the H-1B provisions, S. 1639 would increase the annual cap on H-1B visas to 115,000 (and potentially up to 180,000). It also draws on the labor market protections proposed in S. 1035 , the H-1B and L-1 Visa Fraud and Abuse Prevention Act of 2007. Other H-1B bills include S. 1038 / H.R. 1930 , H.R. 1758 , S. 31 , S. 1397 , S. 1092 , S. 1351 , H.R. 2538 , and H.R. 3194 . Immigration Policy for Professional Workers

		Introduction

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 legislative response was to increase the supply of foreign temporary professional workers through FY2003. The FY2004 limit was reached in mid-February 2004, and the FY2005 limit was reached on October 1, 2004, the first day of the fiscal year. The inclusion of H-1B provisions in free trade agreements ( P.L. 108-77 and P.L. 108-447 , the Consolidated Appropriations Act for FY2005, exempts up to 20,000 aliens holding a master's or higher degree from the cap on H-1B visas. Recent H-1B Capped Petitions

USCIS determined that approximately 119,193 of the H-1B petitions received on April 2 and 3, 2007 (the first days it was accepting petitions) were subject to the FY2008 cap of 65,000. Citizenship and Immigration Services announced that the FY2007 H-1B cap had been reached. By FY2005, as Figure 2 illustrates, the trend reversed, and 45.3% of H-1B new arrivals were employed in computer-related fields. More than one-third (39.3%) have earned master's degrees. Another 17.1% have either professional degrees or doctorates. India was the leading country of origin for newly arriving H-1B workers, comprising almost half (49.0%) of all of the new arrivals in FY2005. In terms of overall H-1B new arrivals in FY2005, China followed with 9.16%, and Canada was third (3.6%). The median annual compensation of the newly arriving H-1B nonimmigrants dropped from $50,000 in FY2001 to $44,803 in FY2003, but climbed back to $50,000 in FY2005. Legislative Issues in the 110th Congress

		Main Issues of Debate

			Global Competition for Talent

Proponents of expanding H-1B admissions argue that H-1B workers are essential if the United States is to remain globally competitive and that employers should be free to hire the best people for the jobs. Effects on U.S. Labor Market

Those opposing any further increases assert that there is no compelling evidence of a labor shortage in these professional areas that cannot be met by newly graduating students and by retraining the existing U.S. work force. They argue that the education of U.S. students and training of U.S. workers should be prioritized. S. 1639 stalled in the Senate on June 28, 2007, when the key cloture vote failed. Although the 107 th Congress did not alter H-1B admission levels, it did include provisions that allow H-1B visa holders to remain in that status beyond the statutory time limits of their temporary visas if their employers had filed applications for them to become legal permanent residents. 108-77 and P.L.
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. When the H-1B annual numerical limits reverted to 65,000 in FY2005, that limit was reached on the first day. The FY2006 limit was reached before the fiscal year began. The U.S. Citizenship and Immigration Services announced that the FY2008 H-1B cap was reached within the first two days it accepted petitions—April 2-3, 2007.
The 106th Congress temporarily raised the number of H-1B visas for three years. The 107th Congress enacted provisions that allow H-1B workers to remain if their employers petitioned for them to become legal permanent residents. A provision in P.L. 108-447 exempted up to 20,000 aliens holding a master's or higher degree from the cap on H-1B visas. It also established a fraud-prevention-and-detection fee on petitioners. Provisions on H-1B visas also were part of Chile and Singapore Free Trade Agreements (P.L. 108-77 and P.L. 108-78).
The median annual compensation of the newly arriving H-1B nonimmigrants dropped from $50,000 in FY2001 to $44,803 in FY2003, but climbed back to $50,000 in FY2005. Most H-1B new arrivals had earned a bachelor's degree or its equivalent (42.5%). More than one-third (39.3%) had master's degrees, and 17.1% had either professional degrees or doctorates. In FY2005, 45.3% of H-1B new arrivals were employed in computer-related fields, followed by educators (11.2%), architects, engineers and surveyors (11.1%), and administrative specializations (9.5%). India was the leading country of origin, comprising 49.0% of all new arrivals in FY2005. China followed with 9.16%, and Canada was third (3.6%).
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 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.
In the 110th Congress, the comprehensive immigration reform legislation (S. 1639) stalled in the Senate on June 28, 2007. S. 1639 would increase the annual cap to 115,000 (and potentially to 180,000 in future years). S. 1639 also draws on the labor market protections proposed in S. 1035, the H-1B and L-1 Visa Fraud and Abuse Prevention Act of 2007. Other H-1B bills include S. 1038/H.R. 1930, H.R. 1758, S. 31, S. 1397, S. 1092, S. 1351, H.R. 2538, and H.R. 3194. This report tracks legislative activity and will be updated as needed.