[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5197 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  2d Session
                                S. 5197

  To amend the Immigration and Nationality Act to provide for a State-
     sponsored nonimmigrant pilot program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 30, 2026

 Mr. Curtis (for himself and Mr. Kelly) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
  To amend the Immigration and Nationality Act to provide for a State-
     sponsored nonimmigrant pilot program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State-Sponsored Visa Pilot Program 
Act of 2026''.

SEC. 2. STATE-SPONSORED NONIMMIGRANT PROGRAM.

    Section 101(a)(15) of the Immigration and Nationality Act (8 U.S.C. 
1101(a)(15)) is amended--
            (1) in subparagraph (U)(iii), by striking the ``or'' at the 
        end;
            (2) in subparagraph (V), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(W)(i) an alien who is sponsored by a State and is coming 
        temporarily to the United States to reside in such State to 
        perform services, provide capital investment, direct the 
        operations of an enterprise, or otherwise contribute to the 
        economic development agenda of such State in a manner 
        determined by the State; and
            ``(ii) the alien spouse and minor children of any alien 
        described in clause (i).''.

SEC. 3. ADMISSION OF STATE-SPONSORED NONIMMIGRANTS.

    (a) Requirements for State-Sponsored Nonimmigrants.--Section 214 of 
the Immigration and Nationality Act (8 U.S.C. 1184) is amended--
            (1) in subsection (h), by striking ``(H)(i)(b) or (c), (L), 
        or (V)'' and inserting ``(H)(i)(b), (H)(i)(c), (L), (V), or 
        (W)''; and
            (2) by adding at the end the following:
    ``(s) Requirements Applicable to State-Sponsored Nonimmigrant 
Visas.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Reside.--The term `reside' means to live and 
                establish a residence in a State for a consecutive 
                period of more than 14 days (not including any period 
                after the approval of the resident's petition for 
                immigrant status).
                    ``(B) Secretary.--Except as otherwise specifically 
                provided in this subsection, the term `Secretary' means 
                the Secretary of Homeland Security.
                    ``(C) State.--Notwithstanding section 101(a)(36), 
                the term `State' means a State of the United States and 
                the District of Columbia.
                    ``(D) State-sponsored nonimmigrant.--The term 
                `State-sponsored nonimmigrant' means an alien who has 
                been sponsored by a State for admission under section 
                101(a)(15)(W).
                    ``(E) State-sponsored nonimmigrant program.--The 
                term `State-sponsored nonimmigrant program' means a 
                nonimmigrant program to regulate the employment, 
                investment, and place of residence of State-sponsored 
                nonimmigrants.
                    ``(F) State-sponsored nonimmigrant status.--The 
                term `State-sponsored nonimmigrant status' means status 
                granted to an alien admitted as a nonimmigrant pursuant 
                to section 101(a)(15)(W).
            ``(2) State-sponsored nonimmigrant program.--Any State may 
        submit an application to the Secretary to participate in the 
        State-sponsored nonimmigrant program by sponsoring aliens for 
        admission to the United States.
            ``(3) State-sponsored nonimmigrant program approval.--The 
        Secretary shall approve any application submitted by a State 
        (or compact of States) pursuant to paragraph (2) for a State-
        sponsored nonimmigrant program that--
                    ``(A) was approved by the legislature of the State;
                    ``(B) regulates, in a manner determined by the 
                State, the employment and residence of State-sponsored 
                nonimmigrants;
                    ``(C) implements procedures, in a manner determined 
                by the Secretary, to inform the Secretary of the 
                failure of a nonimmigrant to comply with the terms of 
                State-sponsored nonimmigrant status when the State is 
                made aware of such failure;
                    ``(D) allows, in a manner determined by the State, 
                a State-sponsored nonimmigrant who has been admitted to 
                seek employment with an employer other than the 
                employer with which the nonimmigrant was initially 
                employed;
                    ``(E) implements procedures to periodically assess 
                labor needs and occupational wage data in the State;
                    ``(F) establish mechanisms to receive and 
                investigate complaints of United States worker 
                displacement in the State;
                    ``(G) attests, in a form to be determined by the 
                Secretary, that the hiring of the State-sponsored 
                nonimmigrant has not displaced and will not displace a 
                United States worker; and
                    ``(H) implements procedures, in a manner determined 
                by the Secretary, to annually inform the Secretary of 
                the place of residence and employment of all State-
                sponsored nonimmigrants residing in the State.
            ``(4) State petition.--
                    ``(A) In general.--A State that participates in the 
                State-sponsored nonimmigrant program shall submit a 
                petition in such form and containing such relevant 
                information as the Secretary shall specify to sponsor 
                an alien under this subsection.
                    ``(B) Approval.--A visa may not be granted to an 
                alien described in subparagraph (A) until the Secretary 
                approves a petition submitted pursuant to subparagraph 
                (A). Such approval does not, of itself, establish that 
                the alien is a State-sponsored nonimmigrant.
                    ``(C) Fee.--The Secretary may require a State that 
                submits a petition pursuant to subparagraph (A) to pay 
                a reasonable fee of an amount that is sufficient to 
                cover, but not exceed, the cost of processing the 
                application.
                    ``(D) Fee waiver for domestic workforce 
                investment.--The Secretary shall waive any fee 
                otherwise required under subparagraph (C) with respect 
                to a State that demonstrates its State-sponsored 
                nonimmigrant program assesses a fee that is allocated 
                by the State to fund workforce investment activities 
                carried out in the State.
            ``(5) State-sponsored nonimmigrants.--The Secretary of 
        State shall approve a nonimmigrant visa for an alien and the 
        Secretary of Homeland Security shall admit such alien to the 
        United States as a State-sponsored nonimmigrant or grant State-
        sponsored nonimmigrant status to the alien if the alien--
                    ``(A) is otherwise admissible under this Act;
                    ``(B) passes a comprehensive background check 
                conducted by the National Vetting Center to ensure such 
                alien does not pose a security risk to the United 
                States;
                    ``(C) is petitioned for by a State that 
                participates in the State-sponsored nonimmigrant 
                program approved by the Secretary pursuant to paragraph 
                (3);
                    ``(D) has not previously violated any term or 
                condition of State-sponsored nonimmigrant status; and
                    ``(E) has paid any bond that the State may require 
                under paragraph (13).
            ``(6) Period of authorized status.--
                    ``(A) In general.--The period of authorized status 
                for a State-sponsored nonimmigrant shall be a period 
                determined by the State, but may not exceed 3 years.
                    ``(B) Renewal.--
                            ``(i) Location.--Subject to clause (ii), 
                        the period of authorized status under 
                        subparagraph (A) shall be renewable inside or 
                        outside of the United States.
                            ``(ii) Condition.--Renewals under clause 
                        (i) may be granted only if--
                                    ``(I) the sponsoring State requests 
                                such renewal; and
                                    ``(II) the State-sponsored 
                                nonimmigrant has resided continuously 
                                in such sponsoring State, or States 
                                subject to an interstate compact (not 
                                including any period of residence after 
                                the approval of a petition for 
                                immigrant status of which the alien is 
                                a beneficiary).
                    ``(C) Termination.--The Secretary shall terminate 
                the period of authorized status as a State-sponsored 
                nonimmigrant if--
                            ``(i) the State-sponsored nonimmigrant 
                        resides or works outside of the State, or 
                        States subject to an interstate compact under 
                        paragraph (7), that sponsored the alien;
                            ``(ii) the State-sponsored nonimmigrant, 
                        after sufficient notice, fails to follow all 
                        rules and regulations required by the State, as 
                        determined by the State (following any appeals 
                        process established by the State); or
                            ``(iii) the State that sponsored the State-
                        sponsored nonimmigrant, after sufficient notice 
                        to such State-sponsored nonimmigrant, requests 
                        termination of such status (following any 
                        appeals process established by the State) 
                        unless another State sponsors the nonimmigrant.
                    ``(D) Employment authorization.--
                            ``(i) In general.--All aliens admitted as 
                        State-sponsored nonimmigrants under section 
                        101(a)(15)(W)--
                                    ``(I) shall be authorized for 
                                employment for purposes of section 
                                274A; and
                                    ``(II) shall be issued appropriate 
                                documentation evidencing such 
                                authorization.
                            ``(ii) State regulation.--Notwithstanding 
                        clause (i), the employment of State-sponsored 
                        nonimmigrants may be regulated in a manner 
                        determined by each State that participates in 
                        the State-sponsored nonimmigrant program.
                            ``(iii) Occupational licenses and 
                        credentials.--Notwithstanding any other 
                        provision of law, State-sponsored nonimmigrants 
                        shall be eligible to apply for--
                                    ``(I) occupational licenses 
                                regulated by the sponsoring State or 
                                applicable interstate compact;
                                    ``(II) certificates;
                                    ``(III) credential evaluations; and
                                    ``(IV) skills assessments.
            ``(7) State compacts.--
                    ``(A) In general.--States may enter into interstate 
                compacts for the joint implementation or administration 
                of the State-sponsored nonimmigrant program in such 
                States.
                    ``(B) Consideration.--A State-sponsored 
                nonimmigrant shall be considered to be sponsored by a 
                State if the State-sponsored nonimmigrant is sponsored 
                by any State subject to an interstate compact under 
                subparagraph (A) and resides in any such State.
            ``(8) Appeals.--
                    ``(A) Federal appeals.--The denial of an 
                application by a State to be a State-sponsored 
                nonimmigrant or the request to terminate the period of 
                authorized status by a State--
                            ``(i) is not reviewable by any Federal 
                        department, agency, or court; and
                            ``(ii) may not be grounds for an appeal of 
                        a termination of a visa or status for a State-
                        sponsored nonimmigrant.
                    ``(B) State appeals.--At the sole discretion of the 
                State and in a manner determined by the State, a State 
                that participates in the State-sponsored nonimmigrant 
                program may create a process for a State-sponsored 
                nonimmigrant or an alien that has applied for 
                participation in the State-sponsored nonimmigrant 
                program in the State to appeal an adjudication of an 
                application by the State or determination by the State 
                that the State-sponsored nonimmigrant violated the 
                terms or conditions that were created by the State for 
                the participation of the alien in the State-sponsored 
                nonimmigrant program in the State.
            ``(9) Waiver of rights prohibited.--
                    ``(A) In general.--Except as provided in 
                subparagraph (C), a State-sponsored nonimmigrant may 
                not be required to waive any substantive rights or 
                protections under this Act.
                    ``(B) Construction.--Nothing under this paragraph 
                may be construed to affect the interpretation of any 
                other law.
                    ``(C) Exception.--Notwithstanding subparagraph (A) 
                or any other provision of law, an alien may not be 
                provided State-sponsored nonimmigrant status unless the 
                alien has waived any right--
                            ``(i) to review or appeal under this Act of 
                        an immigration officer's determination as to 
                        the admissibility of the alien at the port of 
                        entry into the United States; or
                            ``(ii) to contest or appeal, other than on 
                        the basis of an application for asylum, any 
                        action for removal of the alien.
            ``(10) Tax responsibilities.--An employer shall comply with 
        all applicable Federal, State, and local tax laws with respect 
        to each State-sponsored nonimmigrant employed by the employer.
            ``(11) Labor and tax laws.--State-sponsored nonimmigrants 
        shall be subject to all Federal, State, and local laws 
        regarding taxation, employment, or hiring of persons in the 
        State.
            ``(12) Federal public benefits.--
                    ``(A) In general.--Beginning on the date of 
                participation in the State-sponsored nonimmigrant 
                program, no State-sponsored nonimmigrant may apply for 
                or receive any Federal means-tested benefit or 
                entitlement. For purposes of this subparagraph, any 
                benefits received by a spouse, child, or dependent 
                living in the same household that is a United States 
                citizen or is otherwise eligible for such benefits 
                shall not be taken into account.
                    ``(B) Employer fee.--For purposes of subsections 
                (a)(2) and (b)(1)(B) of 4980H of the Internal Revenue 
                Code of 1986, a State-sponsored nonimmigrant shall be 
                treated as a full-time employee certified as having 
                enrolled in a qualified health plan with respect to 
                which an applicable premium tax credit or cost-sharing 
                reduction is allowed or paid with respect to the 
                employee.
                    ``(C) Employer payments.--An employer of a State-
                sponsored nonimmigrant shall pay into the general fund 
                of the Treasury an amount equivalent to the Federal tax 
                on the wages paid to the nonimmigrants that the 
                employer would be obligated to pay under chapters 21 
                and 23 of the Internal Revenue Code of 1986 had the 
                nonimmigrants been subject to such chapters, subject to 
                the same penalties as provided for failure to pay such 
                tax.
                    ``(D) Inclusion of nonimmigrants in save.--Not 
                later than 30 days after the date of the enactment of 
                the State-Sponsored Visa Pilot Program Act of 2026, the 
                Secretary shall modify the Systematic Alien 
                Verification for Entitlements Program of U.S. 
                Citizenship and Immigration Services to add any status 
                under section 101(a)(15)(W) as an alien category that 
                is ineligible for the benefits and entitlements 
                described in subparagraph (A).
            ``(13) Bonds.--
                    ``(A) In general.--States may require State-
                sponsored nonimmigrants to pay a bond in an amount 
                determined by the State to incentivize voluntary 
                compliance with the terms and conditions of the State-
                sponsored nonimmigrant program.
                    ``(B) Study.--
                            ``(i) In general.--At the end of each 
                        fiscal year, the Inspector General of the 
                        Department of Homeland Security and the 
                        Comptroller General of the United States shall 
                        each independently submit a report to the 
                        congressional committees specified in clause 
                        (iii) that identifies, for each State that 
                        participates in the State-sponsored 
                        nonimmigrant program, the percentage of State-
                        sponsored nonimmigrants that have resided or 
                        worked illegally in a State other than the 
                        State that sponsored them (not including any 
                        State-sponsored nonimmigrants who are 
                        beneficiaries of approved immigration 
                        petitions).
                            ``(ii) Assignment.--A State-sponsored 
                        nonimmigrant who resides or works illegally in 
                        a State other than the State that sponsored the 
                        nonimmigrant shall be assigned to the 
                        percentage of the State that initially 
                        sponsored the nonimmigrant if the State 
                        participates in an interstate compact.
                            ``(iii) Congressional committees.--The 
                        congressional committees specified in this 
                        clause are--
                                    ``(I) the Committee on Homeland 
                                Security and Governmental Affairs of 
                                the Senate;
                                    ``(II) the Committee on the 
                                Judiciary of the Senate;
                                    ``(III) the Committee on Homeland 
                                Security of the House of 
                                Representatives; and
                                    ``(IV) the Committee on the 
                                Judiciary of the House of 
                                Representatives.
                    ``(C) Mandatory bonds.--
                            ``(i) In general.--During the first fiscal 
                        year following a determination under 
                        subparagraph (B) by the Comptroller General of 
                        the United States or the Inspector General of 
                        the Department of Homeland Security that more 
                        than 3 percent of the State-sponsored 
                        nonimmigrants sponsored by a State violated the 
                        terms and conditions of State-sponsored 
                        nonimmigrant status in the most recently 
                        completed fiscal year, the State shall require 
                        each State-sponsored nonimmigrant in the State, 
                        as a condition of participation in the State-
                        sponsored nonimmigrant program, to post a bond 
                        equal to not less than $4,000.
                            ``(ii) Subsequent bonds.--The bond amount 
                        under clause (i) shall be raised by $1,000 
                        during each fiscal year following a subsequent 
                        determination under subparagraph (B) by the 
                        Comptroller General or the Inspector General of 
                        the Department of Homeland Security that more 
                        than 3 percent of the State-sponsored 
                        nonimmigrants sponsored by the State violated 
                        the terms and conditions of State-sponsored 
                        nonimmigrant status in the most recently 
                        completed fiscal year.
                            ``(iii) Inflation adjustment.--Effective 
                        for the first fiscal year that begins more than 
                        6 months after the date of the enactment of the 
                        State-Sponsored Visa Pilot Program Act of 2026, 
                        and for each fiscal year thereafter, the 
                        amounts described in this subparagraph shall be 
                        increased by the percentage (if any) by which 
                        the Consumer Price Index for the month of June 
                        preceding the date on which such increase takes 
                        effect exceeds the Consumer Price Index for all 
                        urban consumers published by the Department of 
                        Labor for the same month of the preceding 
                        calendar year.
                    ``(D) Reimbursement of bonds.--
                            ``(i) In general.--Bonds paid to a State 
                        under this paragraph shall be reimbursed to any 
                        State-sponsored nonimmigrant that has not 
                        worked or resided in a State other than the 
                        State that sponsored the nonimmigrant or 
                        otherwise resided in the United States without 
                        status under the immigration laws in accordance 
                        with this subparagraph.
                            ``(ii) Full reimbursement.--The full amount 
                        of the bond shall be reimbursed in full 
                        immediately after--
                                    ``(I)(aa) the alien applies to the 
                                Secretary of State (or the designee of 
                                such Secretary) at a United States 
                                embassy, consulate, or, if specified by 
                                the Secretary, other locations outside 
                                the United States; and
                                    ``(bb) in connection with the 
                                application, the State-sponsored 
                                nonimmigrant confirms his or her 
                                identity, or verifies his or her 
                                departure at such time from the United 
                                States pursuant to a biometric entry 
                                and exit data system;
                                    ``(II) an approved petition for 
                                lawful permanent residency is approved 
                                on behalf of the State-sponsored 
                                nonimmigrant; or
                                    ``(III) the State-sponsored 
                                nonimmigrant dies.
                            ``(iii) Payee.--
                                    ``(I) Death of nonimmigrant.--Upon 
                                the death of a State-sponsored 
                                nonimmigrant, payment shall be 
                                immediately paid to such State-
                                sponsored nonimmigrant's next of kin, 
                                as designated by such State-sponsored 
                                nonimmigrant on the application to be a 
                                State-sponsored nonimmigrant.
                                    ``(II) Bank account.--A State-
                                sponsored nonimmigrant may specify on 
                                the application to be a State-sponsored 
                                nonimmigrant a bank account to which 
                                such amount be sent after the 
                                satisfaction of a condition specified 
                                in clause (ii).
                            ``(iv) Denial of reimbursement.--Funds of a 
                        State-sponsored nonimmigrant held under this 
                        paragraph may not be denied by a State to the 
                        nonimmigrant unless the State demonstrates, by 
                        clear and convincing evidence, that the 
                        nonimmigrant knowingly violated a term or 
                        condition of State-sponsored nonimmigrant 
                        status--
                                    ``(I) by failing to depart the 
                                United States at the end of the period 
                                of authorized status; or
                                    ``(II) working or residing in a 
                                State that did not sponsor the 
                                nonimmigrant.
                            ``(v) Notice.--The Secretary of State, in 
                        conjunction with the Secretary of Homeland 
                        Security, shall inform the State that the 
                        State-sponsored nonimmigrant has complied with 
                        clause (i).
            ``(14) Penalties.--If a State-sponsored nonimmigrant works 
        or resides outside of the State, or outside of any of the 
        States under an interstate compact that sponsored the 
        nonimmigrant or fails to comply with any term or condition of 
        State-sponsored nonimmigrant status, the Secretary shall--
                    ``(A) revoke the employment authorization of such 
                nonimmigrant; and
                    ``(B) initiate removal in accordance with section 
                237.
            ``(15) State administration of program.--
                    ``(A) In general.--Each State that participates in 
                the State-sponsored nonimmigrant program shall 
                establish, conduct, or maintain any assessments, 
                programs, and enforcements related to the 
                administration of the program, in accordance with 
                subparagraphs (B) through (F).
                    ``(B) Rules and regulations.--The State shall 
                enforce all the rules and regulations of the State 
                against employers who employ a State-sponsored 
                nonimmigrant to the same extent as the enforcement of 
                any other labor laws under State law.
                    ``(C) Labor needs assessments.--The State shall 
                establish procedures for periodically assessing labor 
                needs in the State and the State's participation in the 
                State-sponsored nonimmigrant program.
                    ``(D) Wage assessments.--The State shall 
                periodically conduct occupational wage assessments in 
                the State to ensure the State-sponsored nonimmigrant 
                program does not depress wage levels in the State.
                    ``(E) Complaints.--The State shall establish a 
                mechanism for receiving and investigating complaints of 
                domestic worker displacement in the State and workplace 
                discrimination.
                    ``(F) Occupational licenses.--The State shall 
                establish mechanisms for State-sponsored nonimmigrants 
                to apply for and obtain occupational licenses regulated 
                by the State or applicable compact, certificates, 
                credential evaluations, and skills assessments.
            ``(16) Suspension of program approval.--The Secretary shall 
        suspend admissions under the State-sponsored nonimmigrant 
        program for any State that fails--
                    ``(A) to reimburse another State or a Federal 
                agency under paragraph (15)(B) not later than 1 year 
                after a final judgment against the State; or
                    ``(B) to reimburse, in accordance with paragraph 
                (13)(D), a State-sponsored nonimmigrant who--
                            ``(i) has departed the United States;
                            ``(ii) did not seek employment without 
                        authorization in a State that did not sponsor 
                        the nonimmigrant; and
                            ``(iii) did not otherwise reside in the 
                        United States without status under the 
                        immigration laws.
            ``(17) Fees.--
                    ``(A) Federal fees.--A State shall pay a fee to the 
                Secretary for each year in which the State participates 
                in the State-sponsored nonimmigrant program in an 
                amount determined by the Secretary to be necessary to 
                cover the Federal costs of overseeing the State-
                sponsored nonimmigrant program in the State.
                    ``(B) State fees.--Nothing in this subsection may 
                be construed to limit or regulate fees required by the 
                State for State-sponsored nonimmigrants or employers of 
                State-sponsored nonimmigrants.
            ``(18) Numerical limitations.--
                    ``(A) In general.--The total number of aliens who 
                may be issued visas or otherwise provided State-
                sponsored nonimmigrant status under this subsection 
                during any fiscal year may not exceed the total number 
                of visas computed under subparagraph (B).
                    ``(B) Distribution.--Subject to subparagraphs (C), 
                (D), and (E), the number of State-sponsored 
                nonimmigrant visas made available in a fiscal year to a 
                State that participates in the State-sponsored 
                nonimmigrant program shall be the sum of--
                            ``(i) 5,000;
                            ``(ii) the sum of the amounts computed 
                        under subparagraphs (C) and (D) in the most 
                        recently concluded year; and
                            ``(iii) the percentage of the total 
                        population in all States participating in the 
                        State-sponsored nonimmigrant program 
                        represented by the population of that State 
                        multiplied by the sum of--
                                    ``(I) 245,000;
                                    ``(II) the number of 
                                nonparticipating States multiplied by 
                                5,000; and
                                    ``(III) the total number of visas 
                                available in the previous fiscal year 
                                that were revoked or not used.
                    ``(C) Economic growth.--The amounts computed under 
                subparagraphs (A) and (B) for the most recently 
                concluded fiscal year shall be adjusted annually in 
                proportion to the percentage increase or decrease in 
                the Gross Domestic Product of the United States in the 
                prior year, as determined by the Bureau of Economic 
                Analysis of the Department of Commerce.
                    ``(D) Compliance.--
                            ``(i) Increases.--The number of State-
                        sponsored nonimmigrant visas made available to 
                        a State under subparagraph (C) shall be 
                        increased by 10 percent compared to the most 
                        recently concluded fiscal year in each fiscal 
                        year immediately following a fiscal year in 
                        which fewer than 3 percent of the State-
                        sponsored nonimmigrants sponsored by the State 
                        violated the terms and conditions of State-
                        sponsored nonimmigrant status, as determined by 
                        the Inspector General of the Department of 
                        Homeland Security or the Comptroller General of 
                        the United States in the reports required under 
                        paragraph (13)(B).
                            ``(ii) Decreases.--The number of State-
                        sponsored nonimmigrant visas made available to 
                        a State under subparagraph (C) shall be 
                        decreased by 50 percent in each fiscal year 
                        immediately following a fiscal year in which 
                        more than 3 percent of the State-sponsored 
                        nonimmigrants sponsored by the State violated 
                        the terms and conditions of State-sponsored 
                        nonimmigrant status, as determined by the 
                        Inspector General of the Department of Homeland 
                        Security or the Comptroller General of the 
                        United States in the reports required under 
                        paragraph (13)(B).
                            ``(iii) Suspension.--State-sponsored 
                        nonimmigrant visas shall not be made available 
                        for a State during the 5-year period following 
                        4 consecutive fiscal years in which more than 3 
                        percent of the State-sponsored nonimmigrants 
                        sponsored by the State violated the terms and 
                        conditions of State-sponsored nonimmigrant 
                        status, as determined by the Inspector General 
                        of the Department of Homeland Security or the 
                        Comptroller General of the United States in the 
                        reports required under paragraph (13)(B).
                    ``(E) Principal aliens.--
                            ``(i) In general.--The numerical 
                        limitations under this paragraph shall only 
                        apply to principal aliens being admitted to the 
                        United States from another country and not to 
                        aliens accompanying or following to join the 
                        principal alien under section 101(a)(15)(W)(ii) 
                        or aliens who were previously admitted.
                            ``(ii) State exclusion.--The Secretary may 
                        not grant a visa or nonimmigrant status to an 
                        alien who is not the principal alien sponsored 
                        by a State if the State request that no such 
                        aliens be admitted.
            ``(19) Admissibility determination.--
                    ``(A) In general.--At the request of a State that 
                participates in the State-based nonimmigrant program, 
                the Secretary shall waive the grounds of 
                inadmissibility under subparagraphs (A), (B), (C), and 
                (G) of section 212(a)(6), paragraphs (7) and (9) of 
                section 212(a), and sections 240B(d)(1)(B) and 
                241(a)(5) and the grounds of deportability under 
                subparagraphs (A) through (D) of section 237(a)(1) and 
                section 237(a)(3) on behalf of an alien described in 
                subparagraph (B).
                    ``(B) Aliens described.--An alien described in this 
                subparagraph is an alien who--
                            ``(i) was physically present in the United 
                        States on December 31, 2016;
                            ``(ii) is sponsored by a State under the 
                        State-based nonimmigrant program;
                            ``(iii) otherwise meets the requirements of 
                        State-based nonimmigrant status under paragraph 
                        (5); and
                            ``(iv) fulfills the requirements under 
                        paragraph (20).
                    ``(C) Savings provision.--Nothing in this paragraph 
                may be construed to exempt an alien described in 
                subparagraph (B) or exempt a State from the numerical 
                limitation under paragraph (18).
            ``(20) Requirements.--
                    ``(A) Application.--An alien may apply to the 
                Secretary for a waiver of inadmissibility or 
                deportability under paragraph (19)(A) concurrently with 
                an application for a visa or State-sponsored 
                nonimmigrant status under section 101(a)(15)(W).
                    ``(B) Evidence of presence or employment.--
                            ``(i) Conclusive documents.--An alien may 
                        conclusively demonstrate presence in the United 
                        States in compliance with paragraph (19)(B)(i) 
                        by submitting records demonstrating such 
                        presence that have been maintained by the 
                        Social Security Administration, the Internal 
                        Revenue Service, or any other Federal, State, 
                        or local government agency or educational 
                        institution.
                            ``(ii) Other documents.--An alien who is 
                        unable to submit a document described in 
                        subparagraph (A) may satisfy the requirements 
                        under this section by submitting at least 3 
                        other types of reliable documents that provide 
                        evidence of presence, employment, or study in 
                        the United States, including--
                                    ``(I) bank or remittance records;
                                    ``(II) business or employer 
                                records;
                                    ``(III) records of any organization 
                                that assists workers in employment;
                                    ``(IV) education records; and
                                    ``(V) deeds, mortgages, or 
                                contracts to which the alien has been a 
                                party.
                    ``(C) Fees.--
                            ``(i) In general.--An alien submitting an 
                        application pursuant to subparagraph (A) shall 
                        pay a fee in an amount determined by the 
                        Secretary to be necessary to cover the cost of 
                        adjudicating the application and reviewing the 
                        application for fraud.
                            ``(ii) Penalty.--In addition to the fee 
                        under clause (i), an alien seeking a waiver 
                        under paragraph (19) shall pay a penalty of not 
                        less than $1,000, which shall be deposited into 
                        the general fund of the Treasury of the United 
                        States after the approval of the application 
                        under subparagraph (A).
                    ``(D) Criminal penalty.--
                            ``(i) Violation.--It shall be unlawful for 
                        any person to knowingly--
                                    ``(I) file, or assist in filing, an 
                                application under this paragraph if 
                                such application--
                                            ``(aa) falsifies, 
                                        misrepresents, conceals, or 
                                        covers up a material fact;
                                            ``(bb) makes any false, 
                                        fictitious, or fraudulent 
                                        statements or representations; 
                                        or
                                            ``(cc) makes or uses any 
                                        false writing or document 
                                        knowing the same to contain any 
                                        false, fictitious, or 
                                        fraudulent statement or entry; 
                                        or
                                    ``(II) create or supply a false 
                                writing or document for use in making 
                                such an application.
                            ``(ii) Penalty.--Any person who violates 
                        clause (i) shall be fined in accordance with 
                        title 18, United States Code, imprisoned not 
                        more than 5 years, or both.
                            ``(iii) Inadmissibility.--An alien who is 
                        convicted of violating clause (i) shall be 
                        considered to be inadmissible to the United 
                        States on the ground described in section 
                        212(a)(6)(C)(i) and shall be subject to 
                        immediate removal from the United States.
                    ``(E) Fraud prevention program.--The Secretary and 
                the Attorney General shall jointly develop an 
                administrative program to prevent fraud with respect to 
                applications submitted under this paragraph that 
                provides for--
                            ``(i) fraud prevention training for 
                        administrative adjudicators;
                            ``(ii) the regular audit of pending and 
                        approved applications for examples and patterns 
                        of fraud or abuse;
                            ``(iii) the receipt and evaluation of 
                        reports of fraud or abuse;
                            ``(iv) the identification of deficiencies 
                        in administrative practice or procedure that 
                        encourage fraud or abuse;
                            ``(v) the remedy of any identified 
                        deficiencies; and
                            ``(vi) the referral of cases of identified 
                        or suspected fraud or other misconduct for 
                        investigation.
                    ``(F) Ineligible aliens.--
                            ``(i) Removal authorized.--Except as 
                        provided in clause (ii), if the Secretary makes 
                        a final determination to deny an application 
                        under this subsection, the Secretary shall 
                        place the applicant in removal proceedings to 
                        which the alien would otherwise be subject.
                            ``(ii) Aliens with prior orders.--If the 
                        final determination to deny an application 
                        under this subsection concerns an alien with an 
                        existing order of exclusion, deportation, 
                        removal, or voluntary departure from the United 
                        States, such order shall be enforced to the 
                        same extent as if such application had not been 
                        made.
                    ``(G) Employment records.--Copies of employment 
                records or other evidence of employment provided by an 
                alien or by an alien's employer in support of an 
                alien's application under this subsection may not be 
                used in a civil or criminal prosecution or 
                investigation of that employer under section 247A or 
                the tax laws of the United States for the prior 
                unlawful employment of such alien, regardless of the 
                adjudication of such application or reconsideration by 
                the Secretary of such alien's prima facie eligibility 
                determination. Employers that provide unauthorized 
                aliens with copies of employment records or other 
                evidence of employment pursuant to an application under 
                this title shall not be subject to civil and criminal 
                liability pursuant to such section 274A for employing 
                such unauthorized aliens. The protections for employers 
                and aliens shall not apply if the aliens or employers 
                submit employment records that are deemed to be 
                fraudulent.
                    ``(H) Rule of construction.--Nothing in this 
                subsection may be construed to limit the authority of a 
                State to require additional monetary penalties, other 
                evidence of physical presence, or any other requirement 
                for aliens described in paragraph (19)(B) to 
                participate in the State-based nonimmigrant program in 
                such State.''.
    (b) Judicial Review.--Section 242(a)(2) of the Immigration and 
Nationality Act (8 U.S.C. 1252(a)(2)) is amended by adding at the end 
the following:
                    ``(E) Judicial review of certain eligibility 
                determinations.--If an alien's application under 
                section 214(s)(20) is denied or revoked, judicial 
                review--
                            ``(i) shall be instituted in the United 
                        States District Court for the District of 
                        Columbia; and
                            ``(ii) shall be limited to determinations 
                        of the constitutionality of section 214(s), or 
                        any regulations implemented pursuant to such 
                        section.''.
    (c) Nonimmigrants With Approved Immigrant Petitions.--Section 245 
of the Immigration and Nationality Act (8 U.S.C. 1255) is amended--
            (1) in subsection (a)--
                    (A) by striking ``if (1) the alien'' and inserting 
                the following: ``if--
            ``(1) the alien'';
                    (B) by striking ``adjustment, (2) the alien'' and 
                inserting the following: ``adjustment;
            ``(2) the alien'';
                    (C) by striking ``residence, and (3) an immigrant 
                visa'' and inserting the following: ``residence; and
            ``(3) an immigrant visa''; and
                    (D) in paragraph (3), by striking ``him at the time 
                his application is filed'' and inserting ``the alien at 
                the time the alien's application is adjudicated''; and
            (2) by adding at the end the following:
    ``(o) Adjustment of Status Application After an Approved Immigrant 
Petition.--
            ``(1) Application.--An alien who has an approved immigrant 
        petition may file an adjustment of status application under 
        subsection (a), which shall remain pending until a visa number 
        becomes available.
            ``(2) Status.--An alien who has properly filed an 
        adjustment of status application pursuant to subsection (a) 
        shall, throughout the pendency of such application--
                    ``(A) have a lawful status and be considered 
                lawfully present for purposes of section 212; and
                    ``(B) following a biometric background check, be 
                eligible for employment and travel authorization 
                incident to such status.''.

SEC. 4. RULEMAKING.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Homeland Security, in consultation with the 
Secretary of Labor and the Attorney General, shall promulgate 
regulations to carry out and implement the State-sponsored nonimmigrant 
program authorized under section 214(s) of the Immigration and 
Nationality Act, as added by section 3 of this Act.

SEC. 5. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on the first day 
of the first fiscal year that begins after the date of the enactment of 
this Act.
                                 <all>