A bipartisan group of two US lawmakers has introduced in the House of Representatives a legislation, which if passed by the Congress would prevent Indian companies from hiring IT professionals on H-1B and L1 work visas. Since the revenue model of majority of big Indian IT companies is heavily dependent on H-1B and L1 visas in the US, such a bill is likely to have a major impact, if not sound a death knell, on their businesses.

Noting the foreign outsourcing companies are the top users of the H-1B and L-1 visa programs, a media statement issued by the Congressman's office said over the years a number of concerns have been raised about how certain companies have been using these visa programs, including a 2011 report from the Government Accountability Office calling for reform.

Pascrell and Rohrabacher had introduced a similar version of this bill in 2010, which could not gain enough support in the Congress.

The lawmakers said the H-1B and L-1 Visa Reform Act of 2016 would close loopholes in the H-1B and L-1 visa programs, reduce fraud and abuse, provide protections for American workers and visa holders, require more transparency in the recruitment of foreign workers, and increase penalties on those who violate the law.