New Legislation Introduced to Raise H-1B Cap

On the heels of Bill Gates' testimony before Congress, two new pieces of legislation have been introduced in the U.S. House of Representatives that seek to raise the H-1B Cap:

The Innovation Employment Act

Introduced by Rep. Gabrielle Giffords (D-Arizona), the Innovation Employment Act would increase the H-1B cap to 130,000 a year, and create an unlimited cap exemption for H-1B petitions filed by foreign graduate students attending U.S. colleges and studying science, technology and related fields. The bill would also increase penalties for H-1B fraud, prohibit companies from hiring H-1B workers for third-party placements, and prohibit companies with over 50 employees from hiring more H-1Bs if more than half of their staff are H-1B workers.

The SUSTAIN Act

Introduced by House Judiciary Committee ranking member Lamar Smith (R-Texas), the Strengthening United States Technology And Innovation Now (or SUSTAIN) Act would raise the H-1B cap to 195,000 in 2008 and 2009.

While both pieces of legislation are encouraging, their chances of passage are unclear at the moment. Also, it does not appear any action on H-1B Cap relief would be taken before the April 1 filing deadline. Congress just began a two-week break, and is not scheduled to return to session until March 31.