H-1B wage floor bill seeks $140,000 threshold, may hit Indian IT firms
Synopsis
A Republican-backed House bill wants to more than double the H-1B salary exemption from $60,000 — frozen since 1998 — to nearly $140,000, pegged to a live wage index. With Indian nationals dominating H-1B approvals and Indian IT firms among the most H-1B-dependent employers, the proposal, now with a Senate companion, is one of the sharpest legislative threats to the Indian tech workforce pipeline in years.
Key Takeaways
Glenn Grothman introduced H.R.
10799 on 13 October 2026 , seeking to raise the H-1B wage-floor exemption from $60,000 to nearly $140,000 .
The $60,000 threshold has not been updated since 1998 ; the bill would peg it permanently to twice the Social Security Administration national average wage index.
Senate companion bill S.
5638 was introduced by Sen.
Jon Husted of Ohio on 30 September 2026 , giving the proposal a bicameral footing.
Indian nationals receive the bulk of H-1B visas annually; large Indian IT firms are among the employers most likely classified as H-1B-dependent.
The House is in recess until after 3 November midterm elections; the bill has no cosponsors and is unlikely to advance before then.
A separate bill, H.R.
10643 , introduced by Rep.
Beth Van Duyne on 1 October 2026 , proposes raising penalties for wilful displacement of American workers to $250,000 .
A Republican lawmaker has introduced legislation in the US House of Representatives to more than double the salary threshold that allows H-1B-dependent employers to bypass American-worker protections — a move with direct implications for Indian IT firms and Indian professionals who collectively receive the bulk of H-1B visas every year.
What the Bill Proposes
Rep. Glenn Grothman of Wisconsin introduced H.R. 10799 on 13 October 2026, referring it to the House Judiciary Committee. The bill has no cosponsors at this stage. It is the House companion to S. 5638, the Protecting American Workers Through H-1B Modernisation Act, introduced in the Senate by Sen. Jon Husted of Ohio on 30 September 2026. Together, the two measures give the proposal a bicameral footing for the first time.
The legislation targets a specific exemption in existing H-1B law: companies classified as H-1B-dependent — those whose H-1B workforce exceeds a set proportion of their total staff — must ordinarily attest that they first attempted to recruit American workers before sponsoring additional visa holders. They are currently exempt from that requirement if they pay the H-1B worker at least $60,000 annually, or if the worker holds a master's degree or higher.
The $60,000 Loophole That Hasn't Moved Since 1998
The $60,000 wage floor was set in 1998 at roughly twice the Social Security Administration's national average wage index. It has never been adjusted for inflation or wage growth in the intervening 28 years. The bill would replace that fixed figure with a moving standard — permanently pegged at twice the index — which Grothman's office estimates would translate to nearly $140,000 today.
Rep. Grothman said in a statement: 'American workers should come first in their own country. Employers should not be able to use a salary threshold established nearly three decades ago to bypass protections for qualified Americans.' Senator Husted echoed that framing, stating the threshold 'hasn't budged since 1998. That's not modernisation, that's a loophole.'
Why Indian IT Firms Are in the Crosshairs
Indian nationals receive the largest share of H-1B visas issued each year, and large Indian and Indian-origin IT services companies are disproportionately likely to be classified as H-1B-dependent. A jump in the wage floor to nearly $140,000 would significantly narrow the exemption window, forcing such firms either to raise salaries substantially or to formally document American-worker recruitment efforts before each new sponsorship — adding both cost and compliance burden.
This comes amid a broader legislative push on Capitol Hill to tighten H-1B rules. Rep. Beth Van Duyne of Texas separately introduced H.R. 10643 on 1 October 2026 to raise penalties for the wilful displacement of American workers to $250,000. Together, the two House bills and the Senate companion represent one of the more concerted multi-front efforts on H-1B reform in recent years.
Legislative Outlook
The immediate path forward is narrow. The House is in recess until after the 3 November midterm elections, making any movement on H.R. 10799 before then effectively impossible. The bill still lacks cosponsors and faces the standard attrition rate of legislation referred to committee without bipartisan backing. However, its bicameral structure gives advocates a stronger platform heading into the new Congress.
If the bill advances in any form after the midterms, Indian IT majors and the thousands of Indian professionals in the H-1B pipeline will be watching closely for how the wage-floor figure is ultimately calibrated.
Point of View
000 figure was never meant to be permanent — it was always a proxy for 'above-average' pay, and inflation has long since hollowed it out. The real question is whether a jump to $140,000 is a genuine labour-market correction or a legislative tool to shrink the H-1B pool by making it economically unworkable for mid-tier roles. For Indian IT, the risk isn't just the number itself but the dynamic indexation mechanism, which would keep raising the bar automatically. Crucially, the master's-degree exemption survives intact in the current draft, which means the bill's sharpest edge falls on workers without postgraduate credentials — a significant slice of the Indian-origin IT workforce. With midterms looming and no cosponsors, this cycle's passage is unlikely, but the bicameral structure signals it will return in the next Congress.
NationPress
15 Oct 2026
Frequently Asked Questions
What does H.R. 10799 propose for H-1B visa holders?
H.R. 10799 proposes replacing the current $60,000 H-1B wage-floor exemption — unchanged since 1998 — with a dynamic standard set at twice the Social Security Administration's national average wage index, which currently equals nearly $140,000. H-1B-dependent employers who cannot meet this threshold would be required to formally attest that they first attempted to hire American workers before sponsoring a visa holder.
Why does the $60,000 H-1B threshold matter and why is it being changed now?
The $60,000 threshold was set in 1998 to represent above-average wages; decades of wage growth have eroded its value to the point where critics argue it functions as a loophole rather than a protection. Sponsors say updating it to a live index restores the original intent of the law. The proposal is part of a broader wave of H-1B reform measures introduced in the current congressional session.
How could this bill affect Indian IT companies and professionals?
Indian nationals receive the largest share of H-1B visas each year, and major Indian IT services firms are disproportionately classified as H-1B-dependent employers. A wage floor of nearly $140,000 would force such companies either to raise salaries significantly or to comply with formal American-worker recruitment documentation requirements, adding cost and administrative burden to their US operations.
What is the current status of the bill and when could it pass?
H.R. 10799 was referred to the House Judiciary Committee and has no cosponsors. The House is in recess until after the 3 November midterm elections, making passage in the current Congress unlikely. Its Senate companion, S. 5638, was introduced on 30 September 2026, giving the proposal a bicameral platform heading into the next Congress.
Are there other H-1B reform bills currently in Congress?
Yes. Rep. Beth Van Duyne of Texas introduced H.R. 10643 on 1 October 2026, which would raise penalties for the wilful displacement of American workers by H-1B-dependent employers to $250,000. Together with H.R. 10799 and S. 5638, these measures represent one of the more coordinated multi-front legislative efforts on H-1B reform in recent years.
