Policy Backgrounders

Employment Visas Impact Labor Market

August 07, 2025

Policy tensions about employment visas for international workers continue to take shape in the US Congress and the Administration. These decisions have significant implications for the economy as labor shortages and an aging population threaten growth.

• The US offers a variety of non-immigrant and immigrant employment visas; however, availability of these visas is limited by a variety of measures, including, for H-1B and H-2B visas, explicit issuance caps.
• Congress has not increased the overall cap on H-1B and H-2B visas since 1990, other than an amendment in 2004 and periodic exceptions.
• During its markup of the FY 2026 Homeland Security appropriations bill in June, the House Appropriations Committee adopted a bipartisan amendment that would temporarily increase the availability of H-2B and H-2A visas. Under the amendment, employers could request DOL certifications up to the highest number approved in the last five years without those certifications counting against the H-2B cap. The amendment also increases the number of positions eligible for H-2A visas to include all agricultural operations rather than just seasonal work.
• The Labor Department recently announced that it has suspended enforcement of a 2024 rule that aimed to expand protections for H-2A workers; US Citizenship and Immigration Services (USCIS) also recently notified the Office of Management and Budget that it plans to propose a rule revising how H-1B visas are awarded. 

Overview

The President has made reducing unauthorized immigration a cornerstone of his second term, taking a range of steps including deploying additional resources to reduce illegal crossings of the southern border and accelerating arrests of those in the country illegally. However, the President’s views on lawful entry – including on temporary or permanent bases – are less clear. While the Administration has taken some steps to reduce legal pathways for entry – including suspending the refugee program and terminating Temporary Protected Status programs – the President has also previously expressed support for increasing certain legal pathways, stating in 2024 that international students graduating from US universities should automatically qualify for legal permanent status.

These policy tensions have continued to play out in the Administration and in Congress with significant impacts for the US labor force.

Key Employment Visa Types

The US offers both non-immigrant and immigrant employment visa programs.

Non-Immigrant Visas

The US offers a variety of non-immigrant and immigrant visas for foreign nationals seeking to enter the country, depending on the purpose of travel. Non-immigrants seeking to enter the US for employment typically obtain H-1B (high-skill occupations), H-2A (temporary agricultural workers), or H-2B (temporary, typically seasonal, workers performing other services) visas. Through the Immigration and Nationality Act (INA), Congress establishes the number of each visa type that can be issued annually, though Congress has also enacted a variety of exemptions that regularly lead to actual visa issuance exceeding the stated statutory cap.

For example, the INA, as amended in 1990, specifies that the US may annually issue 65,000 regular H-1B visas and, as amended in 2004, an additional 20,000 H-1B visas for individuals with advanced degrees. However, because renewals and certain research and education employers do not count against the cap, the US issued about 220,000 H-1B visas in 2024. Similarly, the INA permits 66,000 H-2B visas annually, but because not all H-2B visas count against the cap, Congress has periodically authorized the Department of Homeland Security to issue additional H-2B visas beyond it. As a result, about 140,000 H-2B visas were issued in 2024. Beyond these changes, Congress has not increased the underlying caps since 1990.

Congress has not established a cap on H-2A visas, but the INA requires that employers hiring workers under the H-2A visa program secure a certification from the Department of Labor (DOL) that: (1) there are not sufficient US workers to perform the work at the time and place needed and (2) the hiring will not “adversely affect” the wages of US workers. DOL implements these requirements by regulations 20 CFR part 655 subpart B and 29 CFR part 501. About 315,000 H-2A visas were issued in 2024, accounting for about 20% of US agricultural workers.

Immigrant Visas

In addition to temporary employment visas, the US offers five employment-based immigrant visas (“green cards”), which since 1990 have been capped at 140,000 annually in aggregate. This includes EB-2 visas (reserved for those with advanced degrees or exceptional ability in the arts, sciences, or business) and EB-3 visas (reserved for skilled workers whose jobs require at least two years of training or experience, professionals with at least a bachelor’s degree, and certain other workers). Some visas require a full-time job offer from a US employer and DOL certification that there are insufficient US workers to fill those roles. Importantly, the statute imposes a cap on the percentage (7%) of visas that can go to nationals of any one country, leading to long backlogs of applications for nationals from countries such as India and China.

Business Perspectives

Business leaders have long advocated for expanding and streamlining US employment visa programs, arguing that they are essential for addressing labor shortages and maintaining US competitiveness is key sectors. For example, CED has recommended setting visa issuance caps based on prior-year demand and streamlining the process for H-1B and F-1 student visa holders to obtain permanent residency. Similarly, the US Chamber of Commerce has supported doubling the cap on employment-based immigrant visas from 140,000 to 280,000, doubling caps on H-1B and H-2B visas, and expanding the number of occupations that quality for H-2A visas. Sectors that rely on seasonal H-2B visa holders – such as the hotel and hospitality industry – have also noted that the current cap of 66,000 is far short of demand. For example, 65 percent of hotels report staffing shortages according to the American Hotel & Lodging Association. Agricultural groups have taken similar positions on the H-2A visa, calling it “critical to American farming,” which is facing labor shortages in part due to an aging population.

Policy Developments

Recent policy developments in both Congress and the Administration are shaping US policies governing employment visa programs.

Congressional Debate

During its markup of the fiscal year 2026 Homeland Security appropriations bill in June, the House Appropriations Committee adopted a bipartisan amendment by voice vote that would temporarily increase the number of H-2B and H-2A visas available to employers. Under the amendment, employers can request certifications from DOL up to the highest number approved in the last five years without those certifications counting against the overall cap on H-2B visas. The amendment also increases the types of agricultural work covered by H-2A visas to include all “agricultural operations,” rather than just temporary or seasonal work. Finally, the amendment provides a new category for workers at “mobile entertainment provider[s],” such as traveling circuses and carnivals, under the P visa program. Though adopted by the Committee, the House may make further amendments before approving the bill.

Press coverage of the vote noted debate among Congressional Republicans about immigration. While some Members expressed support for using non-immigrant visa programs to address labor shortages in certain sectors, others argued that employers should increase wages to incentivize domestic workers to fill these roles. Republican lawmakers have also introduced legislation that would remove the provision that exempts H-1B visa holders employed at universities from counting against the annual cap.

Regulatory Developments

Recent regulatory developments also impact the H-1B and H-2A visa programs. DOL recently announced that it has suspended enforcement of a 2024 rule that aimed to expanded protections for H-2A workers, including through anti-retaliation measures, additional disclosure requirements for employers and recruiters, and clarification of when an employee could be dismissed for cause. The rule had been subject to ongoing litigation that had paused its enforcement in 17 states party to the lawsuit. In its announcement, DOL characterized the rule as “burdensome” and stated that suspending enforcement would provide clarity for employers.

US Citizenship and Immigration Services (USCIS) also recently notified the Office of Management and Budget that it plans to propose a rule revising how H-1B visas are awarded. During the President’s first term, the Administration implemented a rule awarding H-1B visas based on salary rather than by lottery, a policy that President Biden rescinded. It’s unclear whether USCIS’s forthcoming proposed rule would re-introduce this policy. The H-1B program has been the subject of heightened scrutiny recently, as some policymakers – including the Vice President – accusing employers of using the program to displace domestic workers.

Press reports have also indicated that the Administration has repeatedly shifted the focus of its deportation efforts. In a social media post, the President acknowledged that farmers and hotel operators had noted that deportations had taken “very good, long time workers away from them [who are] almost impossible to replace.” Following the President’s statement, the Department of Homeland Security directed agents to pause enforcement operations on farms, meat packing plans, restaurants, and hotels. However, press reports also indicate that the Administration has rescinded that directive and resumed operations at those locations.    

Conclusion

The future of the US employment visa system remains deeply contested, shaped by competing priorities around economic competitiveness, labor market needs, and immigration enforcement. As CED noted in a recent Solutions Brief, immigration plays a critical role in addressing key issues for the US, including labor shortages and demographic concerns related to an aging population. Immigrants are also essential to maintaining the US advantage in technology and innovation, a particularly important concern as the US seeks to lead in AI development, biotechnology, engineering, and other areas.