Legislative Outline

I. Introduction

The American Workforce Protection and Employment Act introduces the “U.S. Foreign Labor Levy” to address the overreliance on Foreign Labor, protect national security, and prioritize U.S. Citizen Workers in a competitive economy. Excessive use of Temporary Worker Visas, such as H-1B, and Green Card programs has displaced U.S. Citizen Workers in high-demand industries like tech, healthcare, and manufacturing, while posing risks like espionage and data theft in critical sectors. 

By imposing targeted levies on employers, this Act aims to incentivize hiring U.S. Citizen Workers, fund workforce training, and strengthen vetting of foreign workers. Through a comprehensive approach involving federal and state collaboration, the Act seeks to restore economic opportunities for U.S. Citizen Workers, safeguard critical infrastructure, and build a resilient, citizen-led workforce.

II. Definitions

For the purposes of this Act, the following terms are defined as follows:

• U.S. Citizen: A person who possesses United States citizenship by birth or naturalization, as defined under the Immigration and Nationality Act (8 U.S.C. § 1401 et seq.), excluding non-citizen nationals.
• Foreign Labor: Any non-citizen employee authorized to work in the U.S. and employed in a role trackable through employer records, including but not limited to:
  • Temporary Worker Visas: All non-immigrant visas authorizing employment, as defined under Section 101(a)(15) of the Immigration and Nationality Act, including H-1B, H-1B1, H-2A, H-2B, H-3, L-1, O-1, O-2, P-1, P-2, P-3, E-1, E-2, E-3, TN, I, R-1, Q-1, and certain J-1 categories (e.g., au pairs, interns, trainees), as well as F-1 visas with Optional Practical Training (OPT) or STEM OPT extensions.
  • Green Card Holders: All lawful permanent residents (LPRs) employed in the U.S., including those under employment-based (e.g., EB-1 through EB-5), family-based (e.g., IR through F4), diversity, or humanitarian green card programs, as defined under the Immigration and Nationality Act.
  • Humanitarian Categories with Work Authorization: Non-citizens with work authorization under humanitarian programs, including but not limited to Deferred Action for Childhood Arrivals (DACA), Temporary Protected Status (TPS), asylum seekers, parolees, and other refugee or asylee categories, as reported by employer records.
  • Exclusions: Non-citizen workers on non-work visas (e.g., B-2, F-1 without OPT) or undocumented workers not trackable through employer records.
• Green Card Employer: An employer who sponsors 100 or more non-citizen workers for employment-based lawful permanent residency programs (e.g., EB-1, EB-2, EB-3, EB-4) in a single fiscal year, as reported by U.S. Citizenship and Immigration Services (USCIS) through Form I-140 petitions or equivalent.
• Green Card Program: Lawful permanent residency programs, including employment-based and family-based categories, as defined under the Immigration and Nationality Act, such as EB-1 through EB-5 and IR through F4 classifications.
• Immediate Family: For sponsorship purposes, defined as a spouse or unmarried children under 21 years of age, including biological, adopted, or stepchildren, as per Section 201(b) of the Immigration and Nationality Act.
• Levy: A targeted financial charge, administered as a tax by the Internal Revenue Service (IRS), imposed on employers to prioritize U.S. citizen worker employment, as detailed in Section III of this Act.
• Local Median Wage: The 50th-percentile wage for an occupation in a metropolitan statistical area or other geographic region, as determined by the most recent U.S. Department of Labor’s Occupational Employment Statistics (OES) survey.
• Temporary Worker Visa: All non-immigrant visas authorizing employment in the U.S., as defined under Section 101(a)(15) of the Immigration and Nationality Act, including but not limited to H-1B, H-1B1, H-2A, H-2B, H-3, L-1, O-1, O-2, P-1, P-2, P-3, E-1, E-2, E-3, TN, I, R-1, Q-1, and certain J-1 categories (e.g., au pairs, interns, trainees), excluding non-work visas such as B-2 or F-1 without work authorization. For clarity, F-1 visas with Optional Practical Training (OPT) or STEM OPT extensions are included to the extent they authorize employment.
• Top H-1B Employer: An employer with 1,000 or more H-1B petitions approved in a single fiscal year, including initial petitions and extensions, as reported by U.S. Citizenship and Immigration Services (USCIS).
• U.S. Citizen Worker: A U.S. Citizen employed or seeking employment in the United States.

III. Implementation of the U.S. Foreign Labor Levy: A Four-Pillar Approach

The U.S. Foreign Labor Levy comprises four (4) levies, each administered as a tax by the IRS, to make hiring foreign labor, particularly H-1B workers, prohibitively expensive, incentivizing corporations to hire U.S. citizen workers as the cheaper alternative. Levies escalate rapidly to eliminate foreign labor reliance within three years.

1. Work Visa and Employment Levy

Employers pay a per-employee levy, administered as a tax, based on the visa category of non-citizen workers, with high initial rates escalating over three years to deter foreign labor use.

• Levy Rates:
  • H-1B Visas: 15% in Year 1, 30% in Year 2, 40% in Year 3.
  • L-1 Visas: 15% in Year 1, 30% in Year 2, 40% in Year 3.
  • Other Temporary Worker Visas: 10% in Year 1, 20% in Year 2, 30% in Year 3.
• H-1B Petition Caps for Top Employers: Top H-1B employers are limited to 50% of their 2019 H-1B petition approvals in Year 1, 25% in Year 2, and 0% in Year 3 to curb dominance and force hiring of U.S. citizen workers.
• No Exemptions: No industries qualify for exemptions, ensuring universal application and preventing high H-1B users (e.g., tech firms) from continuing foreign labor reliance.
• Implementation: Levies are assessed annually based on USCIS petition approvals, collected by the IRS as a tax on visa sponsorship.

2. Foreign Worker Payroll Levy

An additional payroll levy, administered as a tax, applies to wages paid to foreign workers, with a surcharge for H-1B workers paid below the local median wage, to eliminate cost savings from underpayment.

• Base Levy Rates: 20% in Year 1, 35% in Year 2, 50% in Year 3, collected alongside standard payroll taxes.
• H-1B Low-Wage Surcharge: A 25% surcharge applies to H-1B workers paid below the local median wage (e.g., Levels 1 or 2), increasing total payroll levy to 45% in Year 1, 60% in Year 2, 75% in Year 3.
• Levy Application: Applies to all employers with foreign workers on payroll, collected by the IRS.
• Rationale: High levies and surcharges make hiring foreign workers, especially underpaid H-1B workers, more expensive than hiring U.S. citizen workers at market wages, addressing wage suppression.

3. Employee-Remittance Levy

A levy, administered as a tax, on money transfers sent abroad by foreign workers discourages foreign labor by reducing net earnings and encouraging U.S. economic contributions.

• Levy Rates: 9% in Year 1, 14% in Year 2, 18% in Year 3.
• Transfer Types: Applies to wire transfers, money service transactions (e.g., Western Union), digital currencies, and other remittance methods.
• Implementation: Collected by financial institutions at the point of transfer, reported to the IRS as a tax.
• Revenue Allocation: Proceeds fund workforce development programs to upskill U.S. citizen workers, enhancing the domestic labor market.

4. Offshoring & Remote Labor Levy

Employers pay a levy, administered as a tax, on jobs moved overseas or remote foreign workers hired instead of U.S. citizen workers, with a ban on H-1B third-party placements to eliminate outsourcing.

• Levy Rates: 15% per worker in Year 1, 30% in Year 2, 40% in Year 3.
• H-1B Third-Party Ban: Effective Year 1, H-1B workers are prohibited from placement at third-party sites, dismantling the outsourcing model.
• Levy Application: Applies to jobs outsourced abroad or remote foreign workers, assessed annually based on employer reports to the Department of Labor (DOL).
• No Exemptions: No industries qualify for exemptions, ensuring outsourcing firms shift to U.S. citizen workers.
• Rationale: Penalizes offshoring and outsourcing, making hiring U.S. citizen workers the cheaper alternative and protecting U.S. jobs.

IV. Revenue Allocation and Use of Levy Proceeds

Levy proceeds, collected as taxes, support U.S. citizen workers and the domestic labor market, addressing job displacement and wage suppression caused by foreign labor.

1. Government Assistance and Training Programs

Levy proceeds shall fund training programs to prepare U.S. Citizen Workers for in-demand roles and support workforce transitions, including:

• Workforce Development: Fund vocational training, apprenticeships, and certifications in high-demand industries (e.g., tech, healthcare) to equip U.S. Citizen Workers for roles previously held by H-1B workers.
• Retraining for Displaced Workers: Provide targeted retraining for U.S. Citizen Workers displaced by Foreign Labor, ensuring rapid transition to new opportunities.
• Educational Grants: Allocate funds to community colleges and technical schools to enhance programs aligned with labor market needs for U.S. Citizen Workers.

2. Support for Displaced U.S. Citizen Workers

Levy proceeds shall support U.S. Citizen Workers displaced by Foreign Labor through the following measures:

• Financial Assistance: Provide temporary financial aid to cover expenses during job transitions for U.S. Citizen Workers displaced by Foreign Labor.
• Job Placement Services: Establish partnerships with private-sector employers to place displaced U.S. Citizen Workers in roles aligned with their skills.

3. Incentives for Companies Hiring U.S. Citizen Workers

To incentivize hiring U.S. Citizen Workers at market wages over Foreign Labor, levy proceeds shall fund the following financial incentives for companies:

• Tax Incentives:
  • Hiring Credit: $7,500 per U.S. Citizen Worker hired for small businesses (<50 employees), $5,000 for medium businesses (50–500 employees), and $3,000 for large businesses (>500 employees).
  • Retention Credit: $1,000 annually per U.S. Citizen Worker retained for over one year.
  • Payroll Tax Reduction: 10% payroll tax reduction for firms with 90%+ U.S. Citizen Worker workforces, maintained for 12 months.
• Eligibility Criteria:
  • Maintain at least 90% U.S. Citizen Worker workforce.
  • No layoffs of U.S. Citizen Workers in favor of Foreign Labor.
  • Compliance sustained for 12 months.
• Special Considerations: 
  • Provide higher hiring credits ($10,000 per U.S. Citizen Worker) for high-demand industries (e.g., healthcare, manufacturing) for the first 5 years.

4. Economic Development Projects

Levy proceeds shall be allocated to economic development initiatives that create jobs for U.S. Citizen Workers and foster local economic growth, including:

• Community Investment: Fund infrastructure and community projects to create jobs for U.S. citizen workers and stimulate local economies.
• Small Business Support: Provide grants and low-interest loans to small businesses prioritizing hiring U.S. citizen workers, fostering job creation.

V. Transition Assistance for Affected Industries

To support industries transitioning away from foreign labor, levy proceeds shall fund initiatives that upskill U.S. Citizen Workers and incentivize companies, including:

• Training Programs: Fund vocational and technical training to prepare U.S. Citizen Workers for in-demand roles, reducing reliance on foreign labor.
• Tax Credits and Grants: Provide financial incentives to companies adopting U.S. Citizen Worker workforces, minimizing economic disruption.

VI. Robust Enforcement Mechanisms

To eliminate the “rubber stamp” Labor Condition Application (LCA) process, ensure levy and wage compliance, and drive hiring of U.S. citizen workers, the following enforcement mechanisms shall be implemented:

• Compliance Audits:
  • Mandate annual audits by the Department of Labor (DOL) and Internal Revenue Service (IRS), targeting all employers of non-citizen workers to verify levy payments, U.S. citizen worker hiring attestations, and H-1B wage compliance (no workers paid below the local median wage).
  • Require employers to report all employed non-citizens (temporary visas, LPRs, humanitarian workers) via IRS filings, cross-checked with USCIS, DHS, and E-Verify data.
  • Ensure no H-1B third-party placements and adherence to H-1B petition caps.

• Penalties for Non-Compliance:
  • Impose a 100% surcharge on all foreign labor levies for violations.
  • Enforce a 5-year ban from federal contracts.
  • Require public disclosure of violations to deter non-compliance.

• LCA Suspension:
  • Suspend the DOL’s Labor Condition Application (LCA) process effective Year 1.
  • Require employers to attest to 90 days of U.S. citizen worker recruitment efforts before filing H-1B petitions, verified by DOL audits.

VII. Addressing Concerns

To ensure the U.S. Foreign Labor Levy benefits U.S. Citizen Workers while minimizing economic disruption, the following measures shall be implemented:

• Impact Studies: Conduct annual economic impact assessments to evaluate effects on wages, jobs, and inflation, confirming benefits for U.S. Citizen Workers.
• Mitigation Strategies: Allocate levy proceeds to small business grants and training programs to offset business costs and support workforce transitions.

VIII. Public Awareness Campaign

To build support for hiring U.S. Citizen Workers, a public awareness campaign shall be implemented, including:

• Education Initiatives: Launch a campaign using report data to highlight H-1B abuses (e.g., 60% of jobs below Local Median Wage, outsourcing displacement) and the benefits of the U.S. Foreign Labor Levy, targeting employers and communities.
• Community Engagement: Promote job opportunities for U.S. Citizen Workers through community events and job fairs.

IX. Feedback Mechanism

To ensure the U.S. Foreign Labor Levy effectively prioritizes U.S. Citizen Worker employment, the following feedback mechanisms shall be implemented:

• Stakeholder Input: Establish an online portal for businesses, U.S. Citizen Workers, and communities to provide feedback on the levy’s implementation
• Review Periods: Conduct biennial reviews to assess outcomes and adjust levy rates or H-1B petition caps, accelerating the transition to U.S. Citizen Worker employment.
• Legislative Codification: Advocate for Congressional legislation to codify the U.S. Foreign Labor Levy and H-1B petition caps, securing long-term prioritization of U.S. Citizen Workers.

X. Collaborative Efforts

To enhance the U.S. Foreign Labor Levy’s implementation and prioritize U.S. Citizen Worker employment, the following collaborative efforts shall be undertaken:

• Interagency Coordination: Coordinate among the Department of Labor (DOL), Internal Revenue Service (IRS), Department of Homeland Security (DHS), U.S. Citizenship and Immigration Services (USCIS), and Department of Government Efficiency (DOGE) to streamline levy collection, audits, and foreign labor vetting.
• State and Local Partnerships: Partner with state and local governments to align workforce training and job placement programs for U.S. Citizen Workers.

XI. Foreign Labor Vetting & National Security

To protect national security by reducing foreign labor in critical industries (e.g., tech, cybersecurity) and prioritizing U.S. Citizen Workers, the following measures shall be implemented:

• Enhanced Vetting: Strengthen H-1B and other Temporary Worker Visa vetting processes to safeguard critical infrastructure, addressing risks like espionage, cybersecurity breaches, and data theft. Levy proceeds shall fund enhanced vetting programs to ensure robust security screening of non-citizen workers. 
• Agency Roles and Coordination: Direct the Department of Labor (DOL), Department of Homeland Security (DHS), U.S. Citizenship and Immigration Services (USCIS), Department of Justice (DOJ), Department of Defense (DoD), and Department of Government Efficiency (DOGE) to collaborate on vetting Foreign Labor, enforcing levy compliance, and prioritizing U.S. Citizen Worker hiring, with DOGE overseeing H-1B compliance and vetting in sensitive roles.  
• Transparency and Accountability: Require public disclosure of H-1B hiring practices, including visa status, wages, and compliance with vetting standards, to ensure transparency. Employers must conduct enhanced background checks for non-citizen workers in sensitive roles, verified by DOL audits. Periodic audits shall ensure compliance with vetting and levy standards. Levy proceeds may also support training for U.S. Citizen Workers and entitlement programs, enhancing economic and security benefits.

Conclusion:

The American Workforce Protection and Employment Act transforms the U.S. labor market by prioritizing U.S. Citizen Workers, reducing reliance on Foreign Labor, and enhancing national security through the U.S. Foreign Labor Levy. Its multifaceted approach—spanning levies, training, incentives, vetting, and enforcement—creates economic opportunities, protects wages, and mitigates security risks in critical industries. 

By fostering collaboration, transparency, and stakeholder engagement, the Act ensures a resilient, citizen-led workforce. Congress is urged to codify this Act to secure a competitive and secure future for the American workforce.