Guest-worker wage cuts buried in 'stability' bill
S. 4249 — FARM Stability Act · Filed by Ted Budd (R-NC) · 9 cosponsors · Introduced Mar 26, 2026 · Referred to committee
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What it does
This bill authorizes the Secretary of Labor to create a two-tier wage system for H-2A agricultural guest workers, with lower pay for entry-level workers and higher pay for experienced workers. It also allows the Secretary to reduce the effective wage by treating employer-provided housing as compensation, capping that housing credit at 30% of the wage rate.
Why we flagged it
The bill's operative mechanism is to authorize lower wages for entry-level H-2A workers and to permit housing-value offsets against wages, both of which reduce employer labor costs. The framing as 'modernization' and 'stability' masks a wage-reduction mechanism.
What the text implies
- Housing offset (up to 30% of wage) is not conditioned on worker consent or housing quality; employers may credit substandard housing at full offset value, effectively reducing take-home pay without worker choice.
- Two-tier system creates a permanent lower wage track for entry-level workers, potentially locking workers into lower pay even after gaining experience if they remain classified as entry-level.
The full analysis lists 5 implications of this text.
Who stands to gain
agricultural employers (reduced labor costs via two-tier wages and housing offsets); large-scale farming operations (most intensive H-2A users)