Representative Gabrielle Giffords (D-AZ) has introduced much needed legislation that would link the H-1B cap to market demands and also provide cap exemptions for American-educated professionals in the sciences, engineering, technology and math. There are also provisions that largely target outsourcing companies, something that will probably appeal to many H-1B critics. Sourcing out H-1B workers will be barred, firms that are larger than 50 employees will be limited to using the H-1B for no more than half of their employees and advertising that states only H-1Bs will be hired will be prohibiteded (though despite the claims of H-1B critics, there is little evidence to show this is actually happening - I have no problem with this provision, however).

I don't know yet what the chances are that this bill will move. It has strong support from industry folks, but this is a tough year for immigration legislation.

Hat tip to Roy for pointing this out.