BACKGROUND: Sympathy toward legal and illegal immigrants is dwindling nationwide -- from California's approval by referendum last year of Proposition 187, which would end state benefits to illegal (CK) immigrants, to the welfare bill currently moving through Congress, which would deny aid even to legal immigrants. The House is currently considering HR 2202, a reform of the country's immigration system. Immigration is allowed for relatives of U.S. citizens or permanent residents, persons fleeing political persecution and those admitted to fill jobs. The bill would reduce the number of legal immigrants accepted each year from about 800,000 to 535,000. It would limit for the first time the number of refugees and asylum-seekers admitted, and establish special slots for wealthy immigrants who pledge to create new jobs. Like the House bill, the Senate's S269 would toughen measures against illegal immigration, like increased border control and denial of federal benefits, but it does not deal with legal immigration.

STATUS: The House Judiciary Committee is marking up HR 2202. The Senate Judiciary Subcommittee on Immigration approved S269 in June.

KEY PLAYERS: Rep. Henry J. Hyde (R-IL) chairs the House Judiciary Committee. Rep. Lamar Smith (R-TX), is the bill's sponsor. Rep. Howard L. Berman (D-CA) is a major opponent of the bill. Sen. Alan Simpson (R-WY), who chairs the Senate Judiciary Immigration Subcommittee, has been a longtime leader in Congress on these issues.

PRO: With immigration rates high but jobs and funds for government benefits all too scarce, the U.S. cannot continue to absorb so many people into its borders. Proponents of reform argue that the system no longer places an emphasis on skilled workers who are likely to be productive.

"Immigrants who came at the turn of the century worked to make America the great country that it is. But now things have changed. I read a New York Times article which quotes an immigrant who says he came to America because there is free money here. It's never been so bad." -- Rep. Lamar Smith (R-TX)

CON: There is no evidence to show that America admits too many legal immigrants. Most lawmakers agree that _illegal_ immigration must be more effectively curtailed (though cutting off welfare for illegal immigrants remains controversial). But opponents of limiting immigration point to America's history as a melting-pot and haven for the persecuted. They argue the legislation is business-oriented at the expense of humanitarian concerns, and argue that most immigrants are hard-working, honest citizens who stimulate the economy anyway.

"One of the cornerstones of our American immigration policy should be the admittance of refugees. One of the basic creations of our country is to give shelter to those people who are suffering persecution for political or racial or ethnic or religious reasons." -- Rep. Steven Schiff (R-NM)

WHAT'S NEXT: Democrats will likely soften the bill in the House Judiciary Committee. Then the full House and Senate must reconcile and pass their bills.

INSIDE SCOOP: Immigrants have become an convenient scapegoat for politicians, particularly Republicans, promising ways to provide better jobs, higher wages, lower welfare spending and less crime. The issue promises to be prominent in the 1996 Presidential campaign, although perhaps less so after California Governor Pete Wilson's exit from the race; Wilson had kicked off his campaign with the Statue of Liberty behind him, to underscore his strength on immigration issues.