Congress moves to freeze H-1B visas for 3 years, bar permanent residency

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 ban on status adjustment for H-1B holders creates a permanent temporary-worker class with no path to citizenship, reducing their bargaining power and potentially depressing wages for all workers in affected sectors.
• The $100,000 per-petition fee is a de facto tax on employers hiring skilled foreign workers; it may be passed to workers (lower wages) or consumers (higher prices) rather than reducing hiring.
• Prohibition on concurrent employment and third-party staffing eliminates flexibility in labor markets and may harm small employers and contract workers who rely on staffing agencies.

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

Who it affects

While the bill frames itself as protecting American workers, it primarily restricts worker mobility and opportunity for both foreign and domestic workers. The $200,000 wage floor and $100,000 employer fee will likely reduce H-1B hiring across sectors, potentially raising costs for consumers and employers; the ban on status adjustment and elimination of OPT removes pathways for skilled workers to remain and contribute to the economy. The restrictions on employer changes and concurrent employment

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)

Named in the bill

H-1B visa program, US Citizenship and Immigration Services (USCIS), Department of Homeland Security (DHS), Optional Practical Training (OPT), Immigration and Nationality Act, ON (Oracle NetSuite, mapped stock), ARE (mapped stock, unclear entity)

Where it stands

2 cosponsors: 2 Republicans.

• Jul 23, 2026 — Introduced · Congress.gov: “Introduced in Senate”
• Jul 23, 2026 — Referred to Senate Committee on the Judiciary · Congress.gov: “Read twice and referred to the Committee on the Judiciary”

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