US midterm elections could shape H-1B visa and green card rules for Indian workers

what happened

The US congressional elections on November 3 could affect thousands of Indian professionals who work in the United States or hope to move there, Moody's reports, citing Mint. Republicans currently hold narrow majorities in both chambers, and Democrats would need a net gain of four seats in each to take control. Even if Democrats win, they could not automatically reverse restrictions created through presidential orders or agency decisions.

Several bills in Congress would tighten the H-1B programme, which lets employers hire foreign specialists and is widely used by technology and IT services firms with Indian staff. One raises the salary threshold for employers that rely heavily on H-1B workers, while another sharply increases penalties for programme violations and document fraud. Neither has become law. The administration has also suspended new and pending PERM applications linked to companies including Microsoft, Infosys and Wipro, and a proposed SMARTER Act would overhaul employment-based green cards.

why it matters

For markets, the key question is whether a Republican-led Congress keeps pushing to limit hiring of foreign skilled workers. That bears directly on the business model of large Indian IT services companies that depend on H-1B visas, which investors may weigh in those stocks.

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