HR5494119th CongressWALLET

Essential Workers for Economic Advancement Act

Sponsored By: Representative Smucker

Introduced

Summary

Creates a new H-2C nonimmigrant classification for temporary nonagricultural workers. The bill would set up a statutory H-2C program that ties worker admission to employer registration, numeric caps, recruitment rules, wage requirements, enforcement tools, and electronic monitoring.

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  • Workers: H-2C applicants would need a valid job offer, background and national security checks, and would get portability and one-year initial terms. The law would bar employers from deducting hiring fees from wages and give whistleblower protections and remedies for aggrieved workers.
  • Employers and small businesses: Employers must register, meet payroll and tax attestations, and pay fees including a $500 renewal every three years and a 5% scarcity recruitment fee where applicable. The program would reserve at least 25% of positions each half-year for small employers and set an initial cap of 65,000 positions with a statutory floor of 45,000 and ceiling of 85,000.
  • Labor-market rules and enforcement: Employers must post and recruit for 30 days and honor a 45-day pre- and post-designation layoff window before hiring H-2C workers. The bill would require E-Verify or an equivalent, create a public registry and SEVIS-like electronic system, and authorize civil penalties up to $25,000 and criminal fines or jail for serious violations.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 2 benefits, 2 costs, 3 mixed.

H-2C workers lose key tax credits

If enacted, H-2C workers would not qualify for the health insurance premium tax credit. They also could not claim the Child Tax Credit or the Earned Income Tax Credit. On a joint return, those child or EITC credits would be barred only if both spouses are H-2C nonimmigrants.

New H-2C temporary work visa

This bill would create an H-2C visa for non‑agricultural work. You would need a job offer from a registered employer. You would have to start work within 14 days of arrival and keep in touch with the agency before you start. You could be unemployed in the U.S. for up to 45 straight days. You could stay up to 36 months at first and renew up to two times. If you overstay by more than 10 days or break the rules, work permission would be revoked and removal could start.

Pay floor and rights for H-2C workers

This bill would set a pay floor: the higher of what similar local workers earn or the prevailing wage. Employers would have to pay required hiring fees and could not deduct them from your pay. Employers generally could not lay off U.S. workers from 45 days before to 45 days after H-2C hiring unless they first offered the job or showed the worker was not qualified or available. You could change to another registered employer after one year, and promotions after 12 months would be allowed. You could not be forced to waive rights, and you could not be treated as an independent contractor. A complaint process would offer back pay, penalties, lawyer fees for winning workers, and protections from retaliation.

E‑Verify and tracking for H-2C hires

Employers hiring H-2C workers would have to use E‑Verify or a similar system. An electronic tracking system, like the student‑visa system, would track job offers and when H-2C workers start and stop work; it would be tied to the job registry and allow State Department checks. H-2C visa holders would have to provide biometrics at entry and exit. The bill would also limit using the verification system to track U.S. workers, with civil fines for misuse.

Caps and set‑asides for H-2C jobs

This bill would set 65,000 registered positions for the first full fiscal year. Future years could rise by 10%, 15%, or 20% based on how fast spots are used, or drop by 10% in some cases. There would be a hard floor of 45,000 and a cap of 85,000. Half of the yearly spots would go to the first six months, with a possible 5% bump if used early, and extra spots would be given by lottery. At least 25% each half‑year would be reserved for small businesses (under 36 full‑time or under 51 FTE), unless certain timing exceptions apply.

H-2C employer registration, recruiting, and fees

Employers would need to register, show tax compliance, and operate in a full employment area. You would have to post jobs for 30 days on federal and state sites and do at least three recruiting steps within 60 days before filing. A 5% “scarcity” fee based on a worker’s annual pay would apply, and employers must pay all required fees. The Department would decide general applications in 45 days and initial position requests in 10 business days, offer premium processing, and allow e‑filing within one year. Knowingly false statements, failures to cooperate, or certain serious labor or safety violations could trigger 1–2 year bans or permanent ineligibility.

Government study of H-2C impacts

The Census Bureau and several agencies would study how H-2C affects immigration counts, jobs, wages, housing, health care, and criminal justice. The report would cover national, state, metro, and county levels. It would be due to Congress within three years of enactment.

Sponsors & CoSponsors

Sponsor

Smucker

PA • R

Cosponsors

  • Davis (NC)

    NC • D

    Sponsored 9/18/2025

  • Salazar

    FL • R

    Sponsored 9/18/2025

  • Ciscomani

    AZ • R

    Sponsored 9/18/2025

  • Harris (MD)

    MD • R

    Sponsored 9/18/2025

  • Suozzi

    NY • D

    Sponsored 9/18/2025

  • Kelly (PA)

    PA • R

    Sponsored 9/18/2025

  • McCormick

    GA • R

    Sponsored 9/18/2025

  • Amodei (NV)

    NV • R

    Sponsored 9/18/2025

  • Cuellar

    TX • D

    Sponsored 9/18/2025

  • Kennedy (UT)

    UT • R

    Sponsored 9/23/2025

Roll Call Votes

No roll call votes available for this bill.

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