American Tech Workforce Act of 2025

Bill Number

S. 2821

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

Immigration

Status

Introduced

Latest Action

2025-09-16: Read twice and referred to the Committee on the Judiciary.

Last Updated

2025-11-17T18:29:00Z

AI-Generated Summary

Purpose of the Legislation

The American Tech Workforce Act of 2025 aims to reform the H-1B nonimmigrant visa program under the Immigration and Nationality Act. It seeks to protect U.S. workers from wage undercutting by foreign labor, particularly in the tech sector, by raising wage requirements, limiting certain work arrangements, and eliminating the Optional Practical Training (OPT) program for international students. The bill addresses concerns that the current system favors large tech companies and displaces American employees with lower-paid foreign hires.

Key Provisions

• Termination of Optional Practical Training (OPT): Ends the OPT program, which previously allowed certain international students (on F-1 visas) to work in the U.S. for up to three years after completing degrees, especially in science, technology, engineering, or math (STEM) fields. Employment authorization for these students must now end upon completion of their studies, with no extensions allowed.
• Transition for Pending OPT Applications: Any OPT applications filed before the bill's enactment date will be denied, and associated fees refunded.
• H-1B Wage Requirements: Employers must offer H-1B workers an annual wage that is the greater of:
• The wage paid to a U.S. citizen or lawful permanent resident for similar work in the two years before the application; or
• A minimum of $150,000 in the first year after enactment, adjusted annually afterward based on changes in the Consumer Price Index (CPI, a measure of inflation).
• Restrictions on Third-Party Work Sites: H-1B visas for work at third-party locations (e.g., client sites rather than the employer's own office) are limited to one year. Such assignments must be clearly defined, non-speculative (not vague or uncertain), and last the full duration requested in the petition.
• Prioritization of Higher-Wage Petitions: U.S. Citizenship and Immigration Services (USCIS) must approve H-1B petitions based on offered wages, favoring those with higher pay over lower ones, regardless of filing order.
• Rule of Construction: Prohibits federal agencies from creating or expanding work authorization programs for non-citizens without explicit approval from Congress.

Significant Changes to Existing Law

• OPT Elimination: Previously, OPT was regulated by the Department of Homeland Security (DHS) under existing immigration rules but lacked direct congressional authorization. This bill explicitly terminates it, overriding administrative expansions (e.g., STEM extensions under prior administrations).
• H-1B Wage Floor Increase: Current law requires H-1B wages to meet one of four prevailing wage levels (often the lowest). The bill replaces this with a higher, fixed minimum tied to recent U.S. worker pay or $150,000 (inflation-adjusted), aiming to prevent below-median wages.
• Third-Party and Prioritization Rules: Introduces new limits on outsourcing H-1B work and shifts the visa lottery from random selection to wage-based priority, altering how the annual 85,000 H-1B cap is allocated.
• Broader Restriction on Agency Authority: Reinforces that only Congress can authorize new work programs, limiting executive branch discretion in immigration enforcement.

Potential Impacts

• On Government Agencies: USCIS and DHS will face increased administrative burdens in verifying wages, third-party assignments, and prioritizing petitions, potentially requiring new guidelines or systems. The Labor Department may need to assist in wage data enforcement.
• On Citizens and U.S. Workers: Could protect American tech workers by reducing incentives for employers to hire lower-wage foreign labor, potentially leading to higher domestic wages and more job opportunities in STEM fields.
• On International Relations: May deter skilled foreign talent from pursuing U.S. education or employment, affecting diplomatic ties with countries like India and China (major sources of H-1B and F-1 visas). It could strain relations with tech-dependent allies by limiting talent flows.
• On Employers and Economy: Large tech firms (e.g., Amazon, Google) may face higher hiring costs and reduced flexibility, possibly slowing innovation or increasing offshoring. Smaller firms could benefit from a more level playing field if wage priorities favor competitive offers.

Main Stakeholders Affected

• U.S. Workers and Unions: Primary beneficiaries, as the bill targets wage suppression in high-demand sectors like technology.
• Tech Companies and Employers: Especially "Big Tech" (e.g., Meta, Microsoft), which rely heavily on H-1B visas; they may need to adjust hiring practices and budgets.
• International Students and H-1B Applicants: Foreign graduates and skilled workers face barriers to post-study work and visa approvals, limiting U.S. career opportunities.
• Educational Institutions: U.S. universities recruiting international students may see enrollment drops due to the end of OPT incentives.
• Federal Agencies: USCIS, DHS, and the Department of Labor must implement and enforce the changes.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: Strengthens congressional oversight of immigration by curtailing agency-created programs like OPT, potentially inviting lawsuits from affected students or employers challenging the abrupt termination or wage mandates as overly restrictive.
• Constitutional Implications: Aligns with Congress's plenary power over immigration (under Article I), but could raise due process concerns for pending applicants if refunds or denials are not handled fairly.
• Political Implications: Reflects debates on balancing economic competitiveness with worker protections; it may appeal to labor advocates and critics of globalization but face opposition from business lobbies and pro-immigration groups, influencing future bipartisan immigration reform efforts.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Banks, Jim [R-IN]

Recent Actions

• 2025-09-16: Read twice and referred to the Committee on the Judiciary.
• 2025-09-16: Introduced in Senate

Bill Versions

• American Tech Workforce Act of 2025 — issued 2025-09-16 — PDF (6 pages)