1) Overview: Employer obligation first—classify the job correctly before picking a visa program
An employer’s first obligation is choosing the correct work authorization path and supporting it with accurate job, wage, and worksite facts. That obligation is front and center in the current U.S. House debate over a proposed construction-focused visa program. The proposal is aimed at home builders and related employers that need year-round, non-degree workers.
For many construction employers, the immediate tension is practical. H-1B fits only specialty occupations that require at least a bachelor’s degree in a specific field. Many core home-building roles do not qualify. That mismatch is why lawmakers are discussing a new category that would cover year-round essential workers outside the degree framework.
This legislative effort is not a visa you can apply for today. It is a proposal that may change future hiring options. Employers still must rely on existing programs now, including H-1B for degreed roles and H-2B for temporary nonagricultural work.
⚠️ Employer Alert: Filing an H-1B for a role that does not require a specific degree is a denial risk. It can also raise compliance issues in a later audit.
2) Official legislation: H.R. 5494 and what employers should watch in Congress
The proposal driving the current discussion is H.R. 5494, the Essential Workers for Economic Advancement Act. It was reintroduced in the 119th Congress on September 18, 2025. The bill is led by Rep. Lloyd Smucker (R-PA). It has bipartisan support, including Rep. Monica De La Cruz (R-TX) and Rep. Henry Cuellar (D-TX).
Bipartisan sponsorship signals active interest, not certainty. Immigration bills can move quickly or stall for months. Employers should watch four items on Congress.gov:
- Committee referrals and hearings
- Amendments that change eligibility or compliance rules
- Any companion bill in the Senate
- Floor scheduling or inclusion in a broader package
Treat bill text as primary. Treat press releases as context. Treat agency announcements as binding only when they cover an existing program.
Official bill page: (removed)
📅 Key Date: As of Friday, February 13, 2026, H.R. 5494 remains a legislative proposal. No application process exists until Congress passes a law.
3) Key policy details of the proposed H-2C visa—and what they would mean for planning
H.R. 5494 would create an H-2C category for year-round, nonagricultural, non-degree jobs. Construction and home-building roles are a central use case. The draft also references other sectors with similar workforce needs.
From an employer planning standpoint, the bill conceptually includes:
- A numerical cap framework that starts at a set annual allocation. DHS could later adjust the number within a defined range.
- A multi-year validity period with renewals. That structure would support longer projects and repeat seasons.
- A local unemployment safeguard concept. It would limit use in areas above a threshold rate.
- Recruitment and “unfilled position” rules. Employers would need to show jobs stayed open for a required period.
- Mandatory E-Verify participation for employers using the category.
- Worker limits, including background checks and no family accompaniment under the draft.
For home builders, the major operational change would be predictability. A year-round program could reduce repeated short-term filings. It could also expand compliance duties, especially around recruitment proof and E-Verify.
For workers, the limits matter. The draft’s family restriction affects retention. It also affects whether workers can treat the job as truly long-term.
4) Current USCIS & DHS actions: What agencies can do now, and what requires Congress
USCIS and DHS cannot create H-2C by regulation. Only Congress can create a new visa classification. Agencies can, however, adjust how existing programs operate within statutory authority.
The most relevant current tool is H-2B, which covers temporary nonagricultural workers. DHS and DOL sometimes authorize supplemental H-2B numbers through temporary rules. These usually require tight timing and specific employer attestations.
On January 30, 2026, USCIS announced a temporary final rule increasing the FY 2026 H-2B cap by 64,716 additional visas. USCIS described eligibility in terms of employers facing “irreparable harm” without the requested workers. That standard is meant to focus relief on employers with near-term business damage.
Official USCIS alert page: Temporary increase in H-2B nonimmigrant visas for FY 2026
For employers, the lesson is operational. If you rely on H-2B, you must plan around release tranches, filing windows, and cap counts. If you rely on H-1B, you must plan around the March registration and the April–June filing window.
5) Significance for labor and housing markets—and where H-1B fits for home builders
Construction is central because labor availability drives project completion. When crews are short, start dates slip. Subcontractor bids rise. Carry costs increase. Those costs can show up in home prices.
Lawmakers cite different priorities. Some emphasize housing supply and workforce gaps. Others emphasize enforcement and worker protections. Industry groups often ask for a legal pathway that is predictable and auditable.
Where does H-1B fit for home builders? It fits best in degreed roles, including:
- Civil, structural, or mechanical engineers
- Construction managers, if the role requires a specific degree
- Estimators or schedulers with specialized quantitative duties
- IT, data, and accounting roles supporting large projects
It generally does not fit for many craft and general labor roles. That reality is one reason H-2C is being debated in the U.S. House.
Investor-side note for construction firms. Some employers explore capital options like EB-5-backed projects. That does not solve day-to-day staffing. It can, however, affect hiring timelines and compliance budgets.
Step-by-step: How to sponsor an H-1B worker for FY 2027 (employment start October 1, 2026)
H-1B is employer-driven. The employer controls the filing and compliance posture.
Step 1: Confirm the job is a specialty occupation
Match duties to a specific SOC category. Show that a specific degree is normally required. Avoid overly broad descriptions.
USCIS scrutiny increases for Level I wages and generic duties. Tighten the job description and supervision structure.
Step 2: Set the wage and worksite details
Identify work locations, including any client sites. Wage must meet the higher of prevailing wage or actual wage.
Prevailing wage levels are commonly described as:
- Level I: entry, close supervision
- Level II: qualified
- Level III: experienced
- Level IV: fully competent
Step 3: File the Labor Condition Application (LCA)
The LCA is filed with DOL. It requires four core promises:
- Pay at least the required wage
- Provide working conditions that do not harm U.S. workers
- No strike or lockout in the occupation at the worksite
- Provide notice to workers
Posting requirement matters. Post at the worksite, or provide electronic notice. Keep proof in the Public Access File.
Step 4: Register for the H-1B cap lottery (cap-subject cases)
USCIS runs an electronic registration in March. Selection notices are typically released by late March.
Step 5: File the H-1B petition (Form I-129) if selected
File within the USCIS window. Include the certified LCA and supporting evidence.
Step 6: After approval, plan start date and onboarding
Cap-subject approvals typically start October 1. Coordinate I-9, payroll, and any travel needs.
📅 Key Date: FY 2027 cap planning should begin in January 2026. Many employers need wage work and LCA timing before March.
FY 2027 H-1B timeline (cap-subject)
| FY 2027 Milestone | Typical Timing |
|---|---|
| Registration Period | Early-to-mid March 2026 |
| Selection Notification | Late March / early April 2026 |
| Filing Window | April 1 to June 30, 2026 |
| Employment Start Date | October 1, 2026 |
Required documentation (employer and employee)
Employer documents
- Detailed job description and minimum requirements
- Worksite addresses and hybrid/remote policy
- Wage memo showing prevailing vs actual wage
- Certified LCA
- Company support letter describing duties and supervision
- Evidence of business operations and ability to pay wages
- Organizational chart and manager credentials, when helpful
- Contracts and work orders for third-party placements, if any
Employee documents
- Passport ID page and immigration history
- Resume and detailed experience letters, if needed
- Degree, transcripts, and credential evaluation if foreign degree
- Licenses, if the occupation requires them
- Prior approval notices and I-94 history, if in the U.S.
H-1B fee breakdown (FY 2027 planning)
| Fee Type | Amount | Who Pays |
|---|---|---|
| Registration | $215 | Employer |
| Base Filing (I-129) | $780 | Employer |
| ACWIA Fee (25+ employees) | $1,500 | Employer |
| ACWIA Fee (<25 employees) | $750 | Employer |
| Fraud Prevention Fee | $500 | Employer |
| Premium Processing (optional) | $2,805 | Employer or employee |
Improper fee shifting can trigger back-wage exposure and penalties. Employers should keep invoices and payment proof.
Common compliance violations and penalties
Typical problem areas include:
- Wrong SOC code or unrealistic degree requirement
- Paying below the required wage, or delayed wage increases
- Worksite changes without an amended petition
- Benching without pay, when the worker is in status and available
- Missing LCA postings or weak Public Access Files
- Third-party placements without clear employer control
Penalties can include back wages, civil fines, debarment, and petition denials. Site visits can test supervision and location facts.
⚠️ Employer Alert: Any material change in duties, salary, or worksite can require an amended H-1B filing before the change takes effect.
Premium processing and practical timing
Premium processing can speed the USCIS decision after filing. It does not improve lottery odds. It also does not fix weak specialty occupation evidence.
Use premium processing when project start dates matter, or when a worker must travel for visa stamping. Plan for consular appointment timing separately.
💼 Employee Tip: Confirm your job title, worksite, and salary match the filed LCA and petition. Those facts matter at stamping and entry.
What employers and employees should do next (FY 2027) + where to track H-2C
Employers (H-1B):
- Start prevailing wage work in January–February 2026 for March registration readiness.
- Draft a degree-specific job description and map duties to a defensible SOC code.
- Set worksite strategy early, including any client sites or remote work rules.
- Build an LCA posting and Public Access File process before filing season.
Employees (H-1B):
- Confirm your degree is directly related to the role’s core duties.
- Collect transcripts, experience letters, and any license records now.
- Review the offered wage against the local prevailing wage on flcdatacenter.com.
Employers and employees (H-2C tracking):
- Track H.R. 5494 on Congress.gov for committee action and amendments.
- Watch USCIS newsroom alerts for any near-term H-2B cap actions that affect construction staffing.
Upcoming dates to calendar:
- Early-to-mid March 2026: FY 2027 H-1B registration (cap-subject).
- April 1, 2026: Earliest typical date to file selected H-1B cap petitions.
- October 1, 2026: FY 2027 employment start date.
📋 Official Resources: – H-1B Program: H-1B specialty occupations (USCIS) – Cap Season: H-1B cap season (USCIS) – Prevailing Wages: Foreign Labor Certification Data Center (FLC Data Center)
