FARM Stability Act

Bill Number: S. 4249
Origin Chamber: Senate
Congress: 119th Congress, Session 2
Policy Area: Labor and Employment
Status: Introduced
Latest Action: 2026-03-26: Read twice and referred to the Committee on the Judiciary.
Last Updated: 2026-04-17T14:18:23Z

AI-Generated Summary

FARM Stability Act (S. 4249)

Purpose

This bill aims to modernize wage-setting for H-2A workers—temporary foreign workers in U.S. agriculture—by authorizing the Secretary of Labor to create a two-level pay system based on worker experience and to adjust wages to reflect the value of employer-provided housing. The goal is to improve access to and retention of farmworkers while stabilizing costs for farmers.

Key Provisions

Two-Tiered Wage Rates: If the Secretary of Labor sets a minimum wage for H-2A workers higher than the federal or state minimum (known as the Adverse Effect Wage Rate, or AEWR, to protect U.S. workers), it must be a two-tier system:
Skill Level I: For entry-level positions.
Skill Level II: For experienced workers with formal education, training certificates, or significant agricultural experience; paid a higher rate than Level I.
Housing Value Adjustment: The Secretary must annually calculate a "compensation adjustment factor" subtracted from the wage:
Based on the statewide average fair market rent (from the Department of Housing and Urban Development, or HUD) for a 4-bedroom housing unit, converted to an hourly equivalent.
Capped at 30% of the relevant wage rate.
These adjustments apply annually, state-by-state, only when an AEWR above the minimum wage is required.

Significant Changes to Existing Law

Amends Section 218(a) of the Immigration and Nationality Act (8 U.S.C. 1188(a)) by adding a new subsection (3).
Introduces mandatory tiered wages and housing credits where previously wages were uniform (typically a single AEWR per area), potentially lowering effective labor costs for employers providing housing.

Potential Impacts

Government Agencies: Increases workload for the Department of Labor (DOL) to compute and publish annual tiered rates and adjustments; relies on HUD data.
Citizens and Employers: U.S. farmers may face more predictable, potentially lower costs for H-2A labor, aiding competitiveness; could indirectly pressure wages for U.S. farmworkers.
H-2A Workers: Encourages skill development for higher pay; housing value recognition might reduce take-home cash wages but reflect total compensation.
No direct international relations impact, though it affects foreign workers from countries like Mexico.

Main Stakeholders Affected

Agricultural employers (e.g., farmers needing seasonal labor).
H-2A workers (temporary visa holders in agriculture).
U.S. farmworkers (potential wage competition).
Department of Labor (implements changes).
Department of Housing and Urban Development (provides rent data).

Notable Legal, Constitutional, or Political Implications

Legal: Builds on existing H-2A framework without altering visa caps or eligibility; ensures wages prevent "adverse effects" on U.S. workers, aligning with statutory requirements.
Constitutional: No apparent issues; executive discretion (Secretary's determinations) is standard for immigration wage rules.
Political: Sponsored by nine senators (mostly Republicans from agricultural states); could spark debate on worker protections vs. farm industry needs, but focuses narrowly on wage mechanics.

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

Sponsor

Sen. Budd, Ted [R-NC]

Cosponsors (9)

Sen. Scott, Tim [R-SC], Sen. Hyde-Smith, Cindy [R-MS], Sen. Boozman, John [R-AR], Sen. Crapo, Mike [R-ID], Sen. Ricketts, Pete [R-NE], Sen. Tillis, Thomas [R-NC], Sen. Lummis, Cynthia M. [R-WY], Sen. Wicker, Roger F. [R-MS], Sen. Graham, Lindsey [R-SC]

Recent Actions

2026-03-26: Read twice and referred to the Committee on the Judiciary.
2026-03-26: Introduced in Senate

Bill Versions

Farmworker Access and Retention Modernization Stability Act — issued 2026-03-26 — PDF (3 pages)