A CRITICAL MOMENT FOR AMERICAN WORKERS

The 119th Congress stands at a pivotal juncture. While several members have introduced legislation targeting specific aspects of immigration reform, recent analysis reveals a concerning gap: partial reforms risk exacerbating the very job displacement they aim to prevent. Corporate America has spent decades perfecting sophisticated workarounds that allow it to bypass individual visa restrictions while maintaining its reliance on foreign labor.

Current legislative efforts, while well-intentioned, focus on isolated components of a complex system. Senator Jim Banks’ S.2821 addresses H-1B wage suppression and the Optional Practical Training program. Congresswoman Marjorie Taylor Greene’s proposal aims to eliminate the H-1B program. Congressman Chip Roy has called for broader immigration freezes. However, without comprehensive reform that addresses ALL visa categories AND outsourcing models, these efforts will inadvertently trigger the massive offshoring of American jobs.

THE CORPORATE WORKAROUND THREAT

Based on extensive analysis of corporate immigration strategies and industry responses to restrictions, H-1B abusers will immediately deploy multiple sophisticated workarounds to continue the same pattern of American worker displacement:

Primary Workaround Strategies:

1. MASSIVE OUTSOURCING EXPANSION

• Shift from direct H-1B hiring to outsourcing contracts with foreign staffing firms.
• Workers remain employed overseas but perform U.S. jobs remotely
• The outsourcing market is growing 5.48% annually, expected to reach $446 billion by 2034

2. ALTERNATIVE VISA CATEGORY ABUSE

• L-1 intracompany transfers (no caps, unlimited renewals)
• O-1 “extraordinary ability” visas (easily gamed with manufactured credentials)
• TN visas (unlimited for Canadians/Mexicans)
• E-1/E-2 treaty visas through shell companies

3. B-1 BUSINESS VISITOR CIRCUMVENTION

• Foreign workers enter on “business visitor” visas for “training”
• Actually perform full-time work disguised as business activities
• Companies rotate multiple workers through 6-month B-1 stays

4. REMOTE FOREIGN WORKFORCE EXPANSION

• Direct hiring of foreign workers abroad using Employer of Record services
• Zero immigration requirements, 70% cost savings
• Companies like Deel and Remote.com facilitate this model

5. EDUCATIONAL VISA MANIPULATION

• Expanded F-1 student OPT/CPT programs (up to 6 years of work while maintaining student status)
• Companies sponsor master’s programs specifically for worker pipelines

6. CORPORATE RESTRUCTURING SCHEMES

• Spin-off tech divisions to foreign entities, then contract services back to the U.S. parent.
• Creates an illusion of separate foreign companies while maintaining control

The Economic Reality

These workarounds are 50-80% cheaper than even the current H-1B system. When faced with restrictions, corporations will often choose complete offshoring over hiring Americans because it’s more profitable.

ANALYSIS OF CURRENT LEGISLATIVE EFFORTS

Senator Jim Banks’ S.2821 – American Tech Workforce Act of 2025

Strengths: • Terminates the Optional Practical Training program (functions as a tax break for Big Tech) • Establishes $150,000 minimum wage for H-1B workers • Requires H-1B wages to match or exceed wages paid to U.S. workers in identical positions • Limits H-1B visas at third-party worksites to 1 year • Prioritizes higher-compensation petitions

Critical Gaps: • Only addresses H-1B and OPT programs • No provisions for L-1, O-1, TN, E-1/E-2, or B-1 visas • No outsourcing restrictions • No penalties for companies that shift to alternative visa categories • No remedies for workers already displaced

Congresswoman Marjorie Taylor Greene’s H-1B Elimination Proposal

Strengths: • Recognizes the fundamental problem of American worker replacement • Takes a strong stance against foreign labor dependency

Critical Gaps: • No official bill text or legislative framework • Focuses only on H-1B elimination • No comprehensive approach to alternative visa categories • No anti-outsourcing provisions • No support for displaced American workers • Risk of accelerating complete offshoring

Congressman Chip Roy’s Immigration Freeze Proposal

Strengths: • Recognizes need for comprehensive approach • Understands that partial reforms are insufficient

Critical Gaps: • Political feasibility concerns • May lack the specificity needed for implementation • No detailed framework for protecting American workers during transition

THE COMPREHENSIVE SOLUTION: A 10-PILLAR APPROACH

To effectively protect American workers, Congress must adopt a comprehensive strategy that addresses all visa categories AND outsourcing models. The following 10-pillar approach provides the necessary framework:

Pillar 1: COMPREHENSIVE VISA REFORM

Action: Address ALL visa categories simultaneously • H-1B, L-1, O-1, TN, E-1/E-2, B-1, F-1/OPT, and all other nonimmigrant work categories • Eliminate third-party staffing loopholes • Close visa hopping provisions • Implement consistent wage and worker protection standards across all categories

Legislative Language: Establish the “Protect American Workers Act” that amends all relevant sections of the Immigration and Nationality Act to ensure foreign labor cannot be used to undercut American wages or replace American workers.

Pillar 2: TAX DISINCENTIVES FOR OFFSHORING

Action: Implement the HIRE Act framework • 25% excise tax on all outsourcing payments to foreign workers • Eliminate tax deductions for offshore labor costs • Create “Domestic Workforce Fund” from generated revenue • Progressive tax rates for companies with >20% offshore workforce

Economic Impact: Makes offshoring financially punitive rather than profitable, creating immediate financial incentive for domestic hiring.

Pillar 3: FEDERAL PROCUREMENT LEVERAGE

Action: Use government purchasing power to enforce American hiring • 100% American workforce requirement for federal contracts over $100,000 • Blacklist companies with >15% offshore workforce from all federal contracts • 10% bid preference for all-American companies • Supply chain transparency requirements for all federal contractors

Leverage Point: The Federal government is the largest U.S. purchaser of goods and services – this creates a massive compliance incentive.

Pillar 4: CORPORATE ACCOUNTABILITY AND LEGAL RECOURSE

Action: Give American workers legal standing against abusive employers • Streamlined claims process for displaced workers (specialized tribunal) • Presumption of discriminatory intent when companies lay off Americans while hiring foreign workers • 3x annual salary damages for illegal displacement • Executive clawbacks for bonuses tied to offshoring decisions • 10-year lookback period for filing claims

Innovation: Fast-track resolution (180 days) prevents corporate delay tactics and provides real justice.

Pillar 5: MANDATORY WORKFORCE TRANSPARENCY

Action: Require comprehensive disclosure of domestic vs. foreign employment • Annual workforce reports with detailed breakdowns • CEO certification under penalty of perjury • SEC disclosure requirements for public companies • Public database of corporate workforce composition • Investor warnings about offshoring risks

Enforcement: Personal liability for executives ensures accurate reporting.

Pillar 6: DOMESTIC HIRING INCENTIVES

Action: Make American workers economically preferable • 20% tax credit for each American worker hired over foreign workers • Enhanced R&D credits for domestic innovation • Retention bonuses for keeping American workers 5+ years • Infrastructure grants for domestic facility expansion • Energy subsidies for American manufacturers

Strategy: Combine positive incentives with negative disincentives for maximum effectiveness.

Pillar 7: WORKFORCE DEVELOPMENT INVESTMENT

Action: Fund American worker advancement (not “retraining”) • 1 million new apprenticeship positions annually • Free community college tuition for high-demand technical fields • Lifelong learning accounts for continuous skill development • Veterans’ tech transition programs • Advanced manufacturing training centers

Focus: Investment in American excellence, not remedial education.

Pillar 8: TRADE POLICY REFORM

Action: Address international labor arbitrage • Enforceable labor standards in all trade agreements • Service sector tariffs on countries engaged in systematic labor suppression • Currency manipulation penalties • Enhanced intellectual property protection • Reciprocity requirements for market access

Scope: Prevent corporations from simply shifting operations to countries with even lower labor costs.

Pillar 9: ENFORCEMENT EXPANSION

Action: Triple resources for labor enforcement • Specialized offshoring task forces at the Department of Labor • Fast-track courts for worker displacement cases • Whistleblower protection programs • International cooperation agreements • Real-time monitoring systems

Resources: Ensure enforcement matches corporate legal capabilities.

Pillar 10: STATE-LEVEL EMPOWERMENT

Action: Enable states to complement federal efforts • State contractor preferences for domestic workforces • Additional state tax incentives for American hiring • Empower state attorneys general to sue offshore companies • Community benefit agreements for major employers • State-level workforce development programs

Federalism: Leverage state innovation while maintaining national consistency.

IMPLEMENTATION STRATEGY

Phase 1: Foundation (First 100 Days)

1. Pass comprehensive visa reform addressing all categories
2. Implement HIRE Act tax provisions
3. Expand Buy American requirements for federal contracts
4. Triple labor department enforcement funding

Phase 2: Structure (First Year)

1. Implement corporate transparency requirements
2. Create a streamlined worker claims process
3. Launch domestic workforce investment programs
4. Negotiate trade policy reforms

Phase 3: Optimization (Years 2-3)

1. Refine tax incentives and penalties
2. Expand state-level initiatives
3. Strengthen international cooperation
4. Measure and adjust based on economic impact

EXPECTED ECONOMIC IMPACT

Job Creation • 2-3 million new American jobs created • 15-20% wage growth in tech sectors • Reduced income inequality • Revitalized middle class.

Economic Growth • $100+ billion annually from reduced offshoring • 1-2% additional GDP growth • Increased tax revenue from domestic employment • Reduced trade deficit

National Security • Greater technological independence • Reduced foreign influence over critical infrastructure • Enhanced domestic manufacturing capacity • Stronger supply chain security

POLITICAL COALITION BUILDING

Natural Allies • Economic Nationalists: Protection of American jobs • Labor Unions: Support for American worker rights • Tech Workers: Direct beneficiaries of reduced foreign competition • Manufacturing Communities: Protection against offshoring • Veterans Organizations: Support for American worker preferences • Small Business: Level playing field against corporate offshoring

Opposition Management • Corporate Lobbyists: Counter with economic patriotism arguments • Big Tech: Highlight wage suppression and worker displacement • Foreign Governments: Emphasize American sovereignty • Academic Institutions: Address concerns about foreign student revenue

Messaging Strategy • Frame as economic patriotism, not protectionism • Emphasize fairness for American workers • Highlight national security benefits • Use corporate responsibility language • Appeal to both Republican and Democratic values

CONCLUSION: A defining moment for American workers

The 119th Congress has a historic opportunity to reverse three decades of job displacement in America. However, partial reforms will fail and potentially exacerbate the very problems they aim to address. Only comprehensive reform that addresses ALL visa categories AND outsourcing models can effectively protect American workers.

By implementing the 10-pillar approach outlined above, Congress can create an economic environment where hiring American workers is not just patriotic but profitable. This isn’t about isolationism – it’s about ensuring America’s prosperity benefits Americans first.

The choice is clear: comprehensive reform now or permanent economic decline later. The American workers who built this country are waiting for Congress to act decisively.

This is not just legislation – it’s economic patriotism in action.