FARM Stability Act
- Sponsor
- Sen. Budd, Ted [R-NC]
- Committees
- Judiciary Committee (primary)
- Last action
- Mar 26, 2026
Bottom line
The bill aims to reform H-2A wage calculations by introducing skill-based tiers and explicitly valuing employer-provided housing, potentially lowering labor costs for some agricultural employers while adjusting compensation for workers.
What it actually does
This bill, the FARM Stability Act, authorizes the Secretary of Labor to establish a two-tiered wage rate for H-2A agricultural workers, differentiating between entry-level (Skill Level I) and experienced (Skill Level II) workers, with Skill Level II earning a higher wage. It also mandates the Secretary to annually establish a compensation adjustment factor for housing provided to H-2A workers, calculated based on fair market rents for 4-bedroom units, capped at 30% of the relevant wage rate.
Proponents argue
Proponents argue that the current H-2A wage structure (Adverse Effect Wage Rate or AEWR) is overly rigid and does not accurately reflect market realities or the value of benefits like housing provided by employers. They contend that a tiered wage system would allow employers to pay entry-level workers a more competitive rate while still rewarding experienced workers, and that accounting for housing costs would provide a more holistic and fair compensation calculation, reducing the financial burden on agricultural businesses and ensuring the stability of the H-2A program.
Opponents contend
Opponents would likely argue that this bill could depress wages for many H-2A workers, particularly those classified as entry-level, by creating a lower wage floor. They might contend that reducing the AEWR by factoring in housing costs could undermine the program's intent to prevent adverse effects on the wages of domestic workers, and that the proposed housing adjustment mechanism might not fully capture the true value or quality of housing provided, potentially leading to a net decrease in worker compensation.
The bill text is very short and straightforward, making it highly accessible for a quick read.
Section 2(A) of the bill, amending Section 218(a) of the Immigration and Nationality Act
Establishment of Skill-Based Two-Tiered H-2A Wage Rate
This provision requires the Secretary of Labor, if a non-federal/state minimum wage is set for H-2A workers, to create two wage tiers: Skill Level I for entry-level workers and Skill Level II for experienced workers with formal education, training, or significant experience. The wage for Skill Level II must be higher than Skill Level I. This moves away from a single Adverse Effect Wage Rate (AEWR) for all H-2A workers.
Supporters argue
Supporters argue that a tiered wage system better reflects the varying skill levels required for different agricultural tasks, allowing employers to pay appropriately for entry-level work while still incentivizing and rewarding experienced workers. This flexibility is seen as crucial for the economic viability of farms and for maintaining a stable H-2A workforce.
Critics contend
Critics contend that creating a lower wage tier for entry-level H-2A workers could lead to a race to the bottom, depressing wages for all agricultural workers, including domestic ones, and potentially exploiting vulnerable migrant laborers. They argue that the current AEWR is essential for protecting worker wages.
Tradeoffs
The bill balances the desire of agricultural employers for more flexible, potentially lower, labor costs for entry-level positions against concerns that such a system could undermine wage protections for H-2A and domestic farmworkers.
Section 2(B) of the bill, amending Section 218(a) of the Immigration and Nationality Act
Inclusion of Housing Value in H-2A Wage Rate Calculation
This provision requires the Secretary of Labor to annually establish a compensation adjustment factor to the H-2A wage rate, accounting for the value of employer-provided housing. This factor is to be computed as an equivalent hourly rate based on the weighted statewide average of fair market rents for a 4-bedroom housing unit from HUD, and must not exceed 30% of the relevant wage rate.