Proposed Immigration Reform Could Transform H-1B Visa Program

Overview of the Proposed Changes

A new immigration reform initiative introduced by Congressman Chip Roy, a Republican, has the potential to significantly alter the H-1B visa program. This legislation aims to make it more challenging for companies to recruit foreign workers while emphasizing the hiring of American professionals in STEM fields. Named the American White-Collar Worker Jobs Act of 2026, this proposal seeks to abolish several established aspects of the H-1B system, including its role as a pathway to permanent residency and the Optional Practical Training (OPT) program utilized by many international graduates. Although this bill, which has the support of Eli Crane, has not yet been enacted, it outlines some of the most extensive modifications to the H-1B program seen in decades.

1. Elimination of Green Card Pathway

The proposed legislation would mandate that H-1B visa holders maintain a residence outside the U.S. and would eliminate current provisions that allow them to seek permanent residency while in the country.

2. Abolishment of the OPT Program

This initiative aims to terminate the Optional Practical Training program, which permits international students to work in the U.S. post-graduation, especially in STEM disciplines.

3. Change in Visa Selection Process

Rather than the existing lottery system, H-1B visas would be allocated based on salary levels, prioritizing higher-paying job offers.

4. Employer Recruitment Obligations

Companies would be required to prove that they made genuine efforts to recruit American workers and that no qualified U.S. candidates were available before hiring foreign employees.

5. Increased Wage Standards

Employers would need to compensate H-1B workers at least at the higher of the following rates:

• The actual wage paid to similar employees within the company, or
• The 75th percentile wage for that occupation in the respective location.

6. Restrictions on Layoffs

Firms that have laid off American workers within a year of submitting an H-1B application would be prohibited from hiring foreign workers under this program.

7. Cap on Foreign Workforce

The legislation would restrict nonimmigrant workers to a maximum of 5% of a company's U.S. workforce.

8. Shortened H-1B Duration

The maximum duration for H-1B visas would be reduced from six years to just two years, significantly limiting the time foreign professionals can work in the U.S.

9. Country-Specific Limits

No single nation would be permitted to receive more than 7% of the annual H-1B visa allocations, which could impact countries that currently have a significant presence in the program, such as India.

10. Stricter Penalties for Noncompliance

Companies that violate H-1B regulations could incur fines of up to $100,000 for each infraction and face a ban on hiring H-1B workers for up to a decade.

Significance of the Proposal

Proponents of the bill argue that the H-1B program has been exploited, leading to wage suppression and job losses for American workers. Conversely, critics warn that stricter regulations could adversely affect industries that heavily depend on international talent, particularly in technology. The proposed legislation will need to navigate a lengthy legislative process in Congress and gain approval from both chambers before it can become law. For now, this proposal indicates a renewed effort by certain lawmakers to tighten employment-based immigration and redefine how foreign talent is integrated into the U.S. workforce.