Rep. Chip Roy Proposes H-1B Visa Restrictions as Microsoft Announces Thousands of American Job Cuts

H-1B visa holders would face dramatically shorter stays (2 years instead of 6), a requirement to prove intent to return home, and loss of the ability to transition to permanent residency while in the U.S. The bill would also end provisions allowing workers to stay while green card applications are pending. For the roughly 600,000 H-1B workers currently in the U.S., this would fundamentally change their career trajectory and ability to build a life in America.

People currently on the path from H-1B to permanent residency would lose a major pipeline. The bill repeals Section 106 of the AC21 Act, which currently lets H-1B workers extend their status beyond 6 years while waiting for green cards. With stays capped at 2 years and a requirement to show intent to return home, the H-1B program would no longer function as a stepping stone to a green card.

Small businesses that rely on H-1B workers for specialized roles would face a 5 percent cap on nonimmigrant employees, higher wage requirements (75th percentile), and a mandatory U.S. worker recruitment process before hiring foreign talent. While small companies that don't use H-1B workers would be unaffected, those in tech, engineering, or healthcare that depend on foreign talent could struggle to fill critical positions. The 2 percent unemployment threshold could block entire occupational categories from H-1B hiring.

American students graduating with degrees in STEM, business, and other fields that overlap with H-1B occupations could see improved job prospects as employers face tougher requirements for hiring foreign workers. However, international students studying at U.S. universities would find it much harder to transition from student visas to H-1B work visas, potentially making U.S. higher education less attractive to top global talent.

The bill requires employers to notify bargaining representatives before filing H-1B applications and prohibits displacing union workers with foreign workers. Union members in white-collar occupations that overlap with H-1B hiring would gain new protections against being replaced, and the anti-displacement provisions with a private right to sue in federal court give workers a concrete legal remedy.