Congress moves to freeze H-1B visas for 3 years, bar permanent residency
S. 5097 — End H–1B Visa Abuse Act of 2026 · Filed by Tim Sheehy (R-MT) · 2 cosponsors · Introduced Jul 23, 2026 · Referred to committee
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What it does
This bill imposes a three-year pause on all new H-1B visa issuance and fundamentally restructures the program for any visas issued after that pause ends. It raises the wage floor to $200,000/year, eliminates the visa lottery in favor of wage-based allocation, bans H-1B workers from changing employers or working for staffing agencies, prohibits federal agencies from hiring H-1B workers, eliminates Optional Practical Training (OPT) for foreign students, bars H-1B visa holders from adjusting to permanent residency, and imposes a $100,000 per-petition fee on employers. The bill also restricts H-1B visas to primary workers only, eliminating spousal and dependent visas.
Why we flagged it
The bill's core mechanism is a three-year moratorium on H-1B visas followed by sweeping restrictions on wage, employment, and status adjustment. While framed as anti-abuse, the operative effect is a comprehensive restructuring of temporary skilled-worker immigration and a barrier to permanent residency for visa holders.
What the text implies
- The $200,000 wage floor may price out mid-level skilled workers in many sectors (software, healthcare, engineering), potentially reducing overall H-1B hiring and shifting demand to other visa categories or offshore work.
- Elimination of OPT removes a critical pipeline for foreign STEM graduates to gain US work experience; this may reduce US competitiveness in tech and research sectors and push talent to other countries.
The full analysis lists 5 implications of this text.
Who stands to gain
Domestic workers in competing occupations (potential wage protection, though effect uncertain); Offshore outsourcing firms (if H-1B restrictions drive work outside the US)