American Tech Workforce Act of 2025

Higher Wages for H-1B Workers: Under Section 4, employers must offer H-1B workers an annual wage that is at least $150,000 (adjusted over time for inflation) or match what a U.S. citizen or lawful permanent resident was paid for identical work in the previous two years. This ensures that foreign workers are not brought in at wages substantially below local median wages.

Prioritizing Higher Pay: Section 4 adds a rule that prioritizes approving H-1B petitions that offer higher compensation rates over those offering lower compensation rates. This targets the issue identified in the findings where a majority of H-1B visas were assigned wage levels far below local median wages.

Protection Against Cheap Labor Disincentives: By setting strict wage floors and terminating the Optional Practical Training Program—which the text notes waives employer payroll tax withholding obligations—the bill removes financial incentives for employers to bypass hiring United States workers, as outlined in Section 2 and Section 3.

Termination of Student Work Programs: Under Section 3, the Optional Practical Training Program is terminated, and student visa holders can no longer receive employment authorization through the program after completing their studies. Furthermore, any pending applications will be denied and fees refunded, removing a work pathway for foreign students who graduated in science, technology, engineering, or math fields.

Loss of Employer Tax Breaks: Under Section 3, the termination of the Optional Practical Training Program ends the waiver of employer payroll tax withholding obligations for student visa holders who completed their studies. This removes a specific financial benefit that employers previously relied upon when hiring these individuals.

Shortened Visa Validity for Third-Party Work: Section 4 mandates that an H-1B visa is valid for a period not to exceed one year if any part of the assigned work is performed at a third-party worksite. This creates a stricter and more frequent renewal burden for workers and employers operating at third-party locations compared to standard arrangements.