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New H-1B Rules Removed by Obama?

Last week, all H-1B visa applicants became curious to know the impact of the New H-1B rules that would prevent companies receiving TARP funding to hire H-1B visa workers.

It looked like that new H-1B visa rules will be passed to become a law. However, it looks like things took a dramatic turn today behind closed doors.

New H-1B Rules Removed

Today, President Obama and a few others have asked to remove the new rule from the new stimulus law. Last week, 2 U.S. Senators introduced a new H-1B rule into the stimulus package.

Whenever a new bill is added, majority of U.S. Senators have to approve it. Each State in the U.S. has 2 senators.

In last week’s voting, majority of U.S. Senators agreed to include the new H-1B visa rules into the stimulus package law. So this means banks that receive funding cannot hire H-1B workers who are paid less than $60,000 and they don’t have advanced degrees.

The Stimulus Bill was introduced into the U.S. House of Congress and members of the House voted for a Big Stimulus bill. For the Bill to become a law, the US Senate also have to vote and approve the Bill.

Senators made some changes to the Bill and they voted. The H-1B bill was also added in the Senate version of the bill.

First, the Bank Stimulus Bill was passed by the US Congress. Since changes were made to the Bill in U.S. Senate, now they have to vote again and a resulting final Bill have to pass.

Only after both the US Senate and US House agrees on a Bill, the US President will be able to sign it to make it a Law.

Substantial negotiations had been made between the US Senate and US House on what to include and on how to reach a compromise. President Obama and 2 other Members of Congress had made sure that the New H-1B rules will be removed from the Stimulus Law.

Impact of Removing H-1B Hiring rule

After the H-1B rules are deleted from the final Stimulus Law, banks that receive money from the U.S. Government can legally hire H-1B workers.

So that’s good news to many H-1B visa applicants and also to current employees working in those banks. If you wonder, how could have this happened?

Well, my guess could be because of some very high profile lobbying from attorneys and others. They could have talked to President Obama and others explaining about the impact of not hiring H-1B workers as well as discussed the impact of hiring them.

Read – Impact New H-1B rules on Existing H-1B Visa workers in TARP Companies

Is it confirmed?

So far I have read in a couple of websites only about some breaking news. It will be a few more hours before other sites issue updates and other related news.

If there is any change, you can find new updates here. So stay tuned. So do you think this is good news? If so, write your thoughts as comment below.

Update – Obama Signs New H-1B Rules on Feb 17


  1. Arpan on January 22, 2010 at 2:16 PM

    The article is very informative, as usual Indian guys got to be together at the critical moment and forget the differences whatever they have.

    No one has applied mind to the wording that the "Stimulus money belongs to american people", then what about the taxes we H1's have been paying and paid sofar. We have been paying very hingh taxes rainging from 30 to 33% of our income. Is this moeny not part of the stimulus. Are we H1s not deserve any kind of relaxation in H1 rules. I think everyone should think about it. Basically we also pay taxes, let our community bring this to the notice of the law makers in the possible way.

  2. natvar on April 7, 2009 at 12:57 AM



  3. Sanju on March 12, 2009 at 1:55 PM

    Its shameful act to malign each others state belonging to same country publicly.We are Indians above all and should not think of regionalism factors.In this hour of crisis one should not pinpoint at each other but closely work together and sort out things in an amicable manner.The H1B people are one of the most hardworking and effective resource in USA.Thats why H1B visa program is still operative.

  4. leena on March 12, 2009 at 10:09 AM

    i don't support any H1Bs who don't deserve a job here.before sponsoring a visa i guess they should check the background of the candidate..from which college he/she has passed out from.what was the stand of his/her university..there are lot of people i know who do crash courses on engineering..and courses from niit or something similar and come here on H1Bs.i guess govt should be able to identify good from bad.i hate L1 visas.they come here to work on a project and when it's time to go back they apply for H1bs.i guess that should be stopped.The worst offenders are not H1bs but indian consultants.

    to be honest most of these people do really come from andhrapradesh…

    • Mini on March 22, 2009 at 1:25 AM

      "I hate L1 visas" hahaha…go to kindergarten to learn some manners….who are you to hate? and who is asking ur opinion abt L1 visas…if they are applying for H1, they will be equally eligible as any other. Infact they'll have an L1 usually from reputed companies which wud have done a strong background check.

      Grow up Girl

  5. h1b on March 12, 2009 at 8:45 AM

    being an INDIAN.Support h1b united dont abuse punjabi's and andhras companies..Shame on ur part guys

  6. Anil on February 27, 2009 at 4:13 AM

    Good informative site.

  7. Talha on February 17, 2009 at 8:17 PM

    So this means that H-1 quota will increase or decrease?

  8. ankit on February 16, 2009 at 7:00 PM

    Its a nice article but still many questions ,,,,,,,,,,,,,,,,,,

  9. Ravbalkish on February 15, 2009 at 2:25 PM

    H1B visas are misused by Indian Andhra companies – so, it is time to stop issuing H1Bs to Andhra companies

    • rsingh on March 9, 2009 at 10:50 PM

      Its not only Andhra companies. Even lots of Punjabis and Delhi folks have companies in US that do not physically exist. Even they should be removed.

      • HSB on March 12, 2009 at 4:00 AM

        It not necessary to be physically present in US to run a company. Company can be registered in US with foreign address.

  10. Pran on February 13, 2009 at 9:05 AM

    It looks like this article contradicts this: