Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Rep. Issa's bill on H-1B visas goes to committee vote today. Photo: Molly Riley / AP

California Rep. Darrell Issa's bill on H-1B visa allocations heads to its first committee vote Wednesday morning. The bill would make it more difficult for so-called "H-1B dependent" companies to obtain the work permits. Currently, companies with 15% or more employees using the visas are labeled as H-1B dependent.

Why it matters: The Trump administration has already taken aim at H-1B dependent companies that it sees as abusing the H-1B visa program, which currently allocates 85,000 visas annually for high-skilled workers. Issa's bill would be the first legislative step toward reforming visa eligibility — a move that India-based IT services firms say unfairly targets them.

The politics: In 2015, utility company Southern California Edison (in Issa's district) laid off nearly 500 IT workers after hiring two H-1B dependent outsourcing firms. Some laid-off workers said they had to train their visa-holding replacements — an anecdote that President Trump used on the campaign trail.

"We are happy to have additional workers brought in to fill gaps," Issa said. "What we don't want is where they clearly displace American workers for less money."

He added that India-based outsourcing firms would need to meet the new standards laid out in the "Protect and Grow American Jobs Act," including guaranteeing their hiring will not result in American layoffs.

The gritty details: In a deal struck with California Rep. Zoe Lofgren, the bill heading to a markup today includes a number of provisions for H-1B dependent firms. While the new bill would change the threshold for defining H-1B dependent employers — to those with at least 20% of their workforce using the visas from its current 15% — the proposal would also eliminate several other exemptions so the net impact would be broader.

Other provisions of the bill would:

  • Eliminate the exemption for H-1B workers with advanced degrees and increases the $60,000 minimum salary for an H-1B visa holder to $90,000 annually (and possibly more depending on a new formula accounting for the job classification and region).
  • Require certain H-1B employers to attest that they will not displace a U.S. worker during their entire employment, including employment with a third party (or consulting firm). Current law requires that attestation only 90 days prior and 90 days after the filing of an H-1B petition.
  • Require H-1B employers to submit a report summarizing the good faith efforts taken to recruit U.S. workers, the number of U.S. workers that applied for the job, and reasons why jobs were not offered to those candidates.
  • Require H-1B dependent employers to pay workers at least the average wage paid to other workers in the same occupational classification in the same area of employment.
  • Authorize the Labor Department to conduct at least five random investigations of H-1B dependent employers annually. H-1B dependent companies would be charged a new $495 fee to pay for the investigations.

The other side: India-based IT firms, most of which are classified as H-1B dependent firms, say the bill discriminates against them. "If you're looking at protecting American workers, we don't have a problem with these provisions applying to all companies," said NASSCOM president R. Chandrashekhar. "But these provisions are applicable only to a subset of companies and applicable in such a way that targets Indian companies"

Go deeper: Indian firms fight proposals to slash H-1B visas.

Watch today: The markup will be live-streamed here at 1pm ET.

Go deeper

Alabama trying to use COVID relief funds to expand prisons

Inside the Julia Tutwiler Prison for Women in Wetumpka, Ala., in 2018. Photo: Paul Zimmerman/Getty Images

Alabama state lawmakers are trying to funnel up to $400 million of the state's American Rescue Plan funds to pay for a $1.3 billion plan to build and renovate prisons across the state, the Associated Press reports.

Why it matters: Diverting dollars from the COVID-relief package, passed in March, is prompting criticism over misuse.

2 hours ago - World

Jake Sullivan discussed human rights and Yemen with Saudi crown prince

MBS in 2018. Photo: Fayez Nureldine/AFP via Getty

White House national security adviser Jake Sullivan and Saudi Crown Prince Mohammed bin Salman discussed efforts to end the war in Yemen, the de-escalation of regional tensions with Iran, and Saudi Arabia's human rights record in their meeting on Monday, a senior U.S. official told Axios.

Why it matters: This was Sullivan's first trip to the Middle East since taking up his post in January, and he was the most senior visitor to the kingdom so far from the Biden administration, which has kept the crown prince at arm's length over his roles in the murder of Jamal Khashoggi and the war in Yemen.

Updated 4 hours ago - Politics & Policy

Top Pentagon officials contradict Biden on Afghanistan advice

Photo: Carolone Brehman/Pool/AFP via Getty Images

Top military leaders confirmed in a Senate hearing Tuesday they recommended earlier this year that the U.S. keep 2,500 troops in Afghanistan, and that they believed withdrawing those forces would lead to the collapse of the Afghan military.

Why it matters: Biden denied last month that his top military advisers wanted troops to remain in Afghanistan, telling ABC's George Stephanopoulos: "No one said that to me that I can recall."