American Tech Workforce Act: End OPT and H-1B Lottery

(UNITED STATES) Senator Jim Banks has introduced the American Tech Workforce Act, a sweeping proposal that would end the OPT program for international graduates, raise pay requirements for H-1B workers, and replace the long-running H-1B lottery with a wage-based selection system. Filed on September 17, 2025, the bill seeks to reset how the United States 🇺🇸 admits and employs high-skilled foreign workers, with supporters saying the changes would protect U.S. wages and critics warning of steep costs for students, startups, and global tech hiring. As of September 19, the measure sits at the “Introduced” stage in the Senate, with committee action still pending.

The proposal targets three pillars at once: F-1 student work authorization through OPT, the H-1B specialty occupation program, and the lottery process that decides most cap-subject H-1B allocations. It would abolish post-study work for most international students, force employers to meet a much higher pay floor for H-1B sponsorship, and hand visas first to the highest-paying job offers. That combination would mark the most aggressive legislative shift in the employment-based system in years.

Supporters of the American Tech Workforce Act argue the current structure lets firms keep wages down by relying on foreign graduates who work during OPT or by sponsoring junior H-1B workers at lower pay. They point to periods when U.S. firms cut domestic staff while still backing H-1B petitions. Critics counter that ending OPT and reshaping H-1B selection around pay would push out early-career talent, strain university pipelines, and block many smaller employers from competing for scarce skills.

Policy Changes Overview

Under the bill, OPT would end. Today, the program lets most F-1 graduates work for up to 12 months after completing a degree, with STEM fields getting extensions up to 36 months. Universities say OPT is a key part of why many students choose the United States 🇺🇸 over other destinations. The change would close the main bridge from study to employment and, in many cases, to longer-term status.

According to analysis by VisaVerge.com, a large share of F-1 students count on OPT to gain U.S. experience and recoup high tuition costs; removing it would reshape application plans almost overnight.

The bill also raises the H-1B minimum salary. The current statutory floor, set at $60,000, would jump to $110,000 (adjusted for inflation) or match the wage paid to U.S. workers in similar roles, whichever is higher. A separate provision suggests the floor could go as high as $150,000. Backers say this would curb wage arbitrage and limit outsourcing-heavy models. Employers say it could price out early-career hiring, especially in cities and sectors where wages sit below these levels.

On selection, the American Tech Workforce Act would abolish the H-1B lottery—the random draw used when registrations outnumber the annual cap—and award visas in order of highest compensation offered. With the statutory cap fixed at 85,000 visas a year (65,000 general, 20,000 for U.S. advanced degrees), a wage-based queue would favor senior roles and well-funded firms. Entry-level candidates and small employers could find themselves pushed to the back.

The bill also targets staffing and contracting arrangements. Many H-1B workers are hired by one company and sent to a client site. The proposal would limit such placements by capping validity at one year in these scenarios, signaling closer oversight of third-party work that has been a hot spot for audits and enforcement.

Impact on Students and Employers

Universities warn the end of OPT would throw many academic plans into disarray. International students often plan for a year or more of U.S. work as part of their degree value. Without that option, students would need to secure H-1B sponsorship straight from graduation—a tall order under a tighter pay floor and a wage-ranked selection queue.

For current students, the timing matters. If Congress moves quickly and the bill becomes law without a long transition, graduates who expected a year of work—or up to three years for STEM—could lose that window. That risk raises immediate questions about:

• Tuition financing
• Internships leading to full-time roles
• The ability to build experience needed for long-term careers

International student offices say they would need clear rules on grace periods, cap-gap coverage, and any limited exceptions for those already holding job offers.

Employers would need to rethink hiring strategies:

• Firms that hire large cohorts of new graduates—software engineers, data analysts, research assistants—could struggle to meet a $110,000 pay floor for first-year roles in lower-cost regions.
• A wage-ranked H-1B queue would advantage employers with deep pockets, leaving many startups and smaller consultancies on the sidelines.
• Outsourcing companies that move staff across client sites would face shorter validity periods and higher compliance costs, prompting shifts toward direct hiring or offshoring.

Supporters expect the higher wage floor to push employers to hire more U.S. workers into those roles and to lift pay across the board. They argue that setting a strong floor will reduce incentives to sponsor H-1B workers for jobs that could be filled locally and will focus visas on truly hard-to-fill positions. Labor advocates also say a pay-based queue may reduce gaming of the registration system and align visas with market need more than a lottery can.

Still, industry groups warn about skill gaps. Points of concern include:

• The 85,000 cap has not changed even as demand for high-skilled workers has grown.
• A wage-first selection method would prioritize senior roles at the expense of junior talent.
• That could weaken long-term pipelines and diversity efforts, especially in sectors like AI safety, chip design, and cybersecurity, where early-career hires often grow into critical staff.
• Universities note that nearly half a million international graduates each year have relied on OPT; removing that bridge would have ripple effects across labs, startups, and regional tech ecosystems.

Context and Precedent

The bill arrives after years of attempted reforms. A wage-based selection rule advanced late in the Trump administration never took effect after court challenges and a change in administration. President Biden has maintained the H-1B registration system and the lottery while directing agencies to deter fraud.

The new legislation revives the wage-first concept but places it into statute and pairs it with the end of OPT and a sharp pay floor increase, making the package far broader than prior rules.

For families, the consequences extend beyond the H-1B worker. Spouses and children in dependent status may face shorter worksite placements and more frequent extensions. Employers would need to plan earlier for extensions and transfers, as one-year approvals at client sites could add filing cycles and legal fees. Human resources teams say they would need new hiring timelines and budgeting models if the bill advances in current form.

Universities and student groups are mobilizing. Advisers say some students may pivot to Canada 🇨🇦, the United Kingdom, or Australia, where post-study work rights are clearly defined. Faculty leaders warn that a drop in international enrollment could affect funding for research and graduate programs that depend on tuition and assistantship labor. City and state economic offices are also weighing in, saying international graduates help fill local shortages and start companies that hire Americans.

Businesses are split:

• Large firms that already pay above the proposed floor may welcome a wage-first selection that gives them a clearer path to secure visas for specific roles.
• Smaller firms fear they will lose ground in the talent race.
• Outsourcing-heavy companies criticize the one-year cap on third-party placements.
• Domestic staffing firms say it could create openings for direct employment if the bill pushes work back in-house.

What Happens Next

The American Tech Workforce Act must clear committee review before any floor votes. Lawmakers can amend pay thresholds, carve-outs, and timeline provisions during that process. Given the scope, observers expect intense debate and possible compromises, such as:

1. Phased changes for OPT
2. Graduated wage floors by region or role
3. Targeted carve-outs for research, startups, or shortage occupations

The official bill tracker on Congress.gov lists the measure as “Introduced,” with no hearings yet scheduled.

Regulatory activity is moving in parallel. A draft rule to evaluate cap-subject H-1B filings through a weighted selection has cleared early review and could be released for public comment. If adopted, such a rule would move selection closer to wage-ranking even without new legislation, though it would not affect OPT. Any final regulation would still need to fit within current statutes and would likely face legal tests if it departs from the lottery.

Stakeholders are preparing contingency plans:

• Universities advise students to secure early job offers and consider internships that could support straight-to-H-1B hiring if OPT ends.
• Employers are reviewing salary bands for entry-level roles and modeling candidate competitiveness in a wage-first queue.
• Immigration counsel urge careful timing on start dates, internal transfers, and client-site assignments, especially if the one-year limit on third-party placements becomes law.

Important: The timeline and details will matter for thousands of students, employers, and families. Changes could be phased, amended, or blocked in committee—meaning both immediate planning and long-term monitoring are necessary.

Community groups stress the human stakes. Many students budget for a year or more of U.S. earnings after graduation; removing that expectation could create hardship and force abrupt returns home. Families of H-1B workers worry about frequent moves or separated households if approvals become shorter or harder to secure. On the other side, U.S. workers who have struggled to break into certain tech roles see the bill as a chance for fairer pay and opportunity.

Whether the measure advances will depend on committee chairs, broader immigration priorities, and signals from the White House. President Biden has said he supports drawing top global talent while protecting U.S. workers, a balance that could shape negotiations. Allies of former President Trump support stronger pay floors and tighter oversight. If the bill passes in some form, implementation would likely roll out in stages, with guidance for students, employers, and workers to manage transitions.

For now, the American Tech Workforce Act has put H-1B and OPT at the center of a fresh national debate: how to welcome talent from abroad while ensuring strong wages and fair chances for people trained in the United States. The details—pay levels, selection methods, and timelines—will decide who gets hired, who stays, and how the country grows the workforce that powers its tech economy.