Congress phases out H-1B visas — but keeps them for doctors and nurses

What it does

This bill phases out the H-1B visa program over a decade, reducing annual visa allocations from current levels to zero by fiscal year 2036. It eliminates fashion model visas, restricts H-1B eligibility to physicians, surgeons, and nurses only, and bars Medicare funding for residency programs that train foreign nationals.

Why we flagged it

The bill's operative mechanism is a decade-long phase-out of H-1B visa allocations and occupational restrictions, not a policy reform or public-interest measure. It is functionally a labor-supply restriction targeting foreign workers in specific sectors.

What the text implies

• Medicare residency restriction may reduce training capacity for physicians, surgeons, and nurses — the only occupations still eligible for H-1B — potentially exacerbating healthcare workforce shortages in underserved areas.
• Phase-out timeline (10 years) allows employers to plan but creates legal uncertainty for current H-1B holders and visa applicants in the pipeline.
• Restriction to physicians, surgeons, and nurses only contradicts the stated goal of eliminating the program — it preserves H-1B for healthcare occupations while eliminating it for tech, engineering, and other specialty fields.
• No transition provisions for current H-1B visa holders or pending applications; unclear whether existing visas are grandfathered or subject to phase-out.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill restricts labor supply in healthcare and tech sectors, potentially raising wages for competing U.S. workers in those fields but also raising costs for consumers (healthcare, software services) and reducing labor availability for employers. The Medicare restriction may reduce training capacity for residency programs, affecting physician supply and healthcare access. The net effect on ordinary citizens depends on whether wage gains for some workers outweigh higher service costs and reduce

Who stands to gain

• U.S. workers in tech, engineering, and healthcare sectors (wage competition reduced)
• Domestic healthcare training programs (reduced competition from foreign-trained residents)

Named in the bill

H-1B visa program, Immigration and Nationality Act (INA), Social Security Act, Medicare, Department of Homeland Security (implied), USCIS (implied)

Where it stands

• Jan 2, 2026 — Introduced · Congress.gov: “Introduced in House”
• Jan 2, 2026 — Referred to House Committee on Ways and Means and House Committee on Energy and Commerce · Congress.gov: “Referred to the Committee on the Judiciary, and in addition to the Committees on Energy and Commerce, and…”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.