American Tech Workforce Act of 2025
- Sponsor
- Sen. Banks, Jim [R-IN]
- Committees
- Judiciary Committee (primary)
- Last action
- Sep 16, 2025
Bottom line
The American Tech Workforce Act of 2025 aims to reduce the reliance on foreign labor in the tech sector by increasing H-1B wage requirements and eliminating the OPT program, thereby promoting the hiring of United States workers.
What it actually does
This bill reforms the H-1B nonimmigrant visa program and terminates the Optional Practical Training (OPT) program. It establishes a significantly higher wage floor for H-1B visa holders, prioritizes visas based on compensation, and restricts the use of H-1B workers at third-party worksites. It also ends employment authorization for F-1 student visa holders upon completion of their studies, eliminating the OPT program which currently allows them to work for up to three years post-graduation, particularly in STEM fields.
Proponents argue
Proponents argue that the bill addresses the misuse of the H-1B and OPT programs, which they contend are currently exploited by companies, especially Big Tech, to replace American workers with cheaper foreign labor. They assert that the current system disincentivizes hiring U.S. workers by allowing employers to pay substantially below local median wages and provides an unfair tax break through OPT. This bill would restore fairness, protect American jobs, and ensure that foreign workers are only hired for highly compensated, specialized roles where a genuine domestic talent gap exists.
Opponents contend
Opponents would likely argue that the bill would severely restrict the ability of U.S. companies, particularly in the tech sector, to attract and retain top global talent, hindering innovation and economic growth. They might contend that the H-1B program is essential for filling critical skill gaps and that the OPT program provides a vital pipeline for STEM graduates to contribute to the U.S. economy. They may also argue that the increased wage floor and restrictions on third-party worksites are overly burdensome and could force companies to move operations or jobs overseas.
The bill is short and relatively straightforward, making it accessible for an informed reader to understand its core provisions quickly.
Section 3(a)
Termination of Optional Practical Training Program
This provision explicitly terminates the Optional Practical Training (OPT) Program, which currently allows international students on F-1 visas to work in the U.S. for a period after completing their studies, often extended for STEM graduates. It also mandates that any employment authorization for F-1 nonimmigrants will cease immediately upon the completion of their course of studies and cannot be extended.
Supporters argue
Supporters argue that OPT was established without explicit congressional authorization and functions as a tax break and incentive for employers to hire non-U.S. workers over U.S. citizens. Terminating it would remove this disincentive and encourage companies to hire American graduates.
Critics contend
Opponents would contend that OPT is crucial for retaining highly skilled international STEM graduates who contribute significantly to the U.S. economy and innovation. Its termination would force these talented individuals to leave the U.S., benefiting competitor nations and harming American competitiveness.
Tradeoffs
The provision balances the goal of prioritizing U.S. workers for entry-level positions against the potential loss of skilled international talent and its contributions to the U.S. economy and innovation.
Section 3(b)
Transition Rule for Pending OPT Applications
This rule specifies that all applications for Optional Practical Training that are pending on the date the Act is enacted will be denied. Furthermore, any fees paid for these applications will be refunded to the applicants.
Section 4(1)
Enhanced H-1B Wage Floor
This provision significantly raises the minimum annual wage an employer must offer an H-1B nonimmigrant. The wage must be the greater of either the wage paid to a U.S. worker for identical or similar work in the preceding two years, or a new statutory floor of $150,000 in the first year after enactment, adjusted annually for inflation thereafter.
Section 4(6)
One-Year Validity for Third-Party Worksite H-1B Visas
This provision limits the validity period of an H-1B visa to a maximum of one year if any portion of the H-1B nonimmigrant's work will be performed at a third-party worksite. This contrasts with the standard three-year validity period for H-1B visas.
Section 4(7)
Specificity and Duration Requirements for Third-Party Worksite Assignments
This provision stipulates that an H-1B visa cannot be issued for work at a third-party worksite unless the assignment is specific, not speculative, and is guaranteed to continue for the entire work period requested in the petition. This aims to prevent employers from obtaining H-1B visas without a concrete, long-term project in place.
Section 4(8)
Wage-Based Prioritization for H-1B Visas
This provision mandates that when H-1B visas are issued or status is granted during a fiscal year, petitions from employers must be approved by prioritizing those that offer higher compensation rates over those offering lower rates. This prioritization applies regardless of the order in which the petitions were filed.