Balanced Immigration Reform - Legal status, no amnesty

119th CONGRESS 2d Session H.R. ___ To amend the Immigration and Nationality Act to establish a Conditional Resident Worker visa classification for certain long-term resident aliens, to require all employers to participate in the E-Verify electronic employment eligibility verification system, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES M___ __, 2026 Mr./Ms. __________ introduced the following bill; which was referred to the Committee on the Judiciary, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned _______________________________________________________________________ A BILL To amend the Immigration and Nationality Act to establish a Conditional Resident Worker visa classification for certain long-term resident aliens, to require all employers to participate in the E-Verify electronic employment eligibility verification system, 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; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the "Balanced Immigration Reform Act of 2026". (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Findings. Sec. 3. Definitions. TITLE I--CONDITIONAL RESIDENT WORKER VISA Sec. 101. Establishment of Conditional Resident Worker visa classification. Sec. 102. Eligibility requirements. Sec. 103. Rights and conditions of Conditional Resident Worker status. Sec. 104. Revocation of Conditional Resident Worker status. Sec. 105. Prohibition on adjustment to immigrant status or naturalization. Sec. 106. Tax obligations and benefit eligibility. Sec. 107. Application procedures and fees. Sec. 108. Authorization of appropriations for Title I. TITLE II--MANDATORY EMPLOYMENT ELIGIBILITY VERIFICATION Sec. 201. Mandatory participation in the E-Verify Program. Sec. 202. Scope of covered workers. Sec. 203. Penalties for noncompliance. Sec. 204. Rulemaking and implementation timeline. Sec. 205. Authorization of appropriations for Title II. Sec. 301. Effective date. Sec. 302. Severability. SECTION 2. FINDINGS. Congress finds the following: (1) The United States is a nation of immigrants whose economic vitality, cultural richness, and innovative capacity have been strengthened throughout its history by the contributions of individuals who have come to this country seeking opportunity. (2) An estimated 11,000,000 or more undocumented aliens reside in the United States, many of whom have lived in the country for years or decades, are gainfully employed, pay taxes, and contribute to their communities. (3) The aging demographics of the United States population require sustained immigration to support economic growth, maintain the solvency of entitlement programs, and sustain innovation and competitiveness. (4) The current immigration system fails to provide a practical mechanism for long-term, law-abiding, undocumented residents to regularize their status, creating a shadow population that is vulnerable to exploitation and unable to fully participate in the economy. (5) Providing a legal status that does not include a path to citizenship or lawful permanent residence represents a balanced approach that acknowledges the contributions of long-term undocumented residents without disadvantaging those who have applied for immigration benefits through established legal channels. (6) Requiring all employers to verify the work authorization of all workers through the E-Verify system will significantly reduce the economic incentive for future unauthorized immigration and create a more level playing field for employers who comply with the law. (7) A comprehensive approach that combines legal status for qualifying long-term residents with robust employment verification requirements serves the national interest by bringing undocumented residents into the formal economy while deterring future unauthorized immigration. SECTION 3. DEFINITIONS. In this Act: (1) CONDITIONAL RESIDENT WORKER STATUS.--The term "Conditional Resident Worker status" means the nonimmigrant status described in section 101(a)(15)(W) of the Immigration and Nationality Act, as added by section 101 of this Act. (2) CRW VISA.--The term "CRW visa" means a nonimmigrant visa issued pursuant to section 101(a)(15)(W) of the Immigration and Nationality Act, as added by section 101 of this Act. (3) COVERED WORKER.--The term "covered worker" has the meaning given such term in section 202 of this Act. (4) E-VERIFY PROGRAM.--The term "E-Verify Program" means the electronic employment eligibility verification system established under section 403(a) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (division C of Public Law 104-208; 8 U.S.C. 1324a note), as operated by the Secretary of Homeland Security, or any successor electronic employment verification system. (5) EMPLOYER.--The term "employer" means any person or entity, including any individual, partnership, corporation, association, or other legal entity, that employs, hires, recruits, or refers for a fee any individual for employment in the United States. (6) SECRETARY.--Unless otherwise specified, the term "Secretary" means the Secretary of Homeland Security. (7) VIOLENT FELONY.--The term "violent felony" means any offense that-- (A) is classified as a felony under Federal or State law; and (B) is a crime of violence as defined in section 16 of title 18, United States Code. TITLE I--CONDITIONAL RESIDENT WORKER VISA SECTION 101. ESTABLISHMENT OF CONDITIONAL RESIDENT WORKER VISA CLASSIFICATION. (a) In General.--Section 101(a)(15) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)) is amended-- (1) in the subparagraph (V), by striking the period at the end and inserting "; or"; and (2) by adding at the end the following: "(W) subject to section 214(s), an alien who-- "(i) has been continuously physically present in the United States for a period of not less than 5 years immediately preceding the date of the filing of an application for classification under this subparagraph; "(ii) has been gainfully employed in the United States for a substantial portion of such 5-year period, as determined by the Secretary of Homeland Security by regulation; "(iii) has not been convicted of any felony offense under Federal or State law; and "(iv) is not inadmissible under subparagraphs (A), (B), (C), or (E) of section 212(a)(2), except that the Secretary of Homeland Security may waive inadmissibility under subparagraph (A)(ii)(II) of such section for a single offense of simple possession of 30 grams or less of marihuana; who is granted Conditional Resident Worker status authorizing the alien to live, work, study, and reside in the United States for an indefinite period, subject to the conditions and limitations set forth in section 214(s).". (b) Conforming Amendment to Nonimmigrant Admission Provisions.--Section 214 of the Immigration and Nationality Act (8 U.S.C. 1184) is amended by adding at the end the following new subsection: "(s) Conditional Resident Worker Status.-- "(1) IN GENERAL.--An alien classified under section 101(a)(15)(W) shall be authorized to remain in the United States for an indefinite period and shall be authorized to accept employment with any employer in the United States without restriction as to the type or duration of such employment. "(2) TRAVEL.--An alien in Conditional Resident Worker status may travel outside the United States and be readmitted upon presentation of valid documentation of such status, provided that any single absence from the United States does not exceed 180 consecutive days unless the alien has obtained advance permission from the Secretary of Homeland Security. "(3) DEPENDENTS.--The spouse and unmarried children under the age of 21 of an alien classified under section 101(a)(15)(W) may be granted derivative Conditional Resident Worker status if such spouse or child-- "(A) has been continuously physically present in the United States for a period of not less than 5 years immediately preceding the date of the filing of the application; "(B) has not been convicted of any felony offense under Federal or State law; and "(C) is otherwise admissible under section 212(a), subject to the same waivers available to the principal alien. "(4) DOCUMENTATION.--The Secretary of Homeland Security shall issue to each alien granted Conditional Resident Worker status an employment authorization document and such other documentation as the Secretary determines appropriate to evidence the alien's status and authorization to remain in and be employed in the United States. "(5) NO NUMERICAL LIMITATION.--The admission of aliens under section 101(a)(15)(W) shall not be subject to any numerical limitation. "(6) RENEWAL.--Conditional Resident Worker status shall not require periodic renewal, except that the Secretary of Homeland Security may require the alien to report a change of address within 10 days of such change and to appear for biometric data collection at intervals not more frequent than once every 10 years.". SECTION 102. ELIGIBILITY REQUIREMENTS. (a) Continuous Physical Presence.-- (1) IN GENERAL.--For purposes of section 101(a)(15)(W) of the Immigration and Nationality Act, as added by section 101, an alien shall be considered to have been continuously physically present in the United States if the alien has maintained a principal residence in the United States during the 5-year period immediately preceding the date of application and has not been absent from the United States for any single period exceeding 90 days or for an aggregate period exceeding 180 days during such 5-year period. (2) EVIDENCE.--An applicant may establish continuous physical presence through any credible evidence, including but not limited to-- (A) tax returns or tax filings, including Individual Taxpayer Identification Number (ITIN) filings; (B) employment records, pay stubs, or employer attestations; (C) lease agreements, mortgage records, or utility bills; (D) school enrollment records for the applicant or the applicant's children; (E) medical records; (F) bank account statements or financial records; or (G) sworn affidavits from individuals with personal knowledge of the applicant's residence. (b) Employment Requirement.-- (1) IN GENERAL.--An applicant shall demonstrate that the applicant has been gainfully employed, whether as an employee or as a self-employed individual, for not less than 18 months of the 5-year period described in subsection (a)(1). (2) EXCEPTIONS.--The Secretary may waive or reduce the employment requirement under paragraph (1) for an applicant who demonstrates that the applicant was-- (A) the primary caregiver of a minor child or disabled family member during the relevant period; (B) enrolled as a full-time student at an accredited educational institution during the relevant period; or (C) unable to work due to a documented medical condition during the relevant period. (c) Criminal History.-- (1) IN GENERAL.--An applicant shall not be eligible for Conditional Resident Worker status if the applicant has been convicted of-- (A) any felony offense under Federal or State law; or (B) three or more misdemeanor offenses under Federal or State law (excluding minor traffic violations). (2) BACKGROUND CHECK.--The Secretary, in consultation with the Director of the Federal Bureau of Investigation, shall conduct a thorough background check of each applicant, including a search of all relevant Federal and State criminal databases. SECTION 103. RIGHTS AND CONDITIONS OF CONDITIONAL RESIDENT WORKER STATUS. (a) Rights.--An alien granted Conditional Resident Worker status under section 101(a)(15)(W) of the Immigration and Nationality Act, as added by section 101, shall have the following rights: (1) EMPLOYMENT.--The right to accept lawful employment with any employer in the United States without restriction as to occupation, industry, or duration. (2) RESIDENCE.--The right to reside in any State, territory, or possession of the United States. (3) EDUCATION.--The right to enroll in and attend any public or private educational institution in the United States on the same terms as a lawful permanent resident. (4) TRAVEL.--The right to travel outside the United States and return, subject to the conditions set forth in section 214(s)(2) of the Immigration and Nationality Act, as added by section 101. (5) DUE PROCESS.--The right to due process of law in any proceeding to revoke Conditional Resident Worker status, including the right to counsel at no expense to the Government, the right to present evidence, and the right to appeal an adverse determination. (b) Conditions.--An alien granted Conditional Resident Worker status shall-- (1) comply with all Federal, State, and local laws; (2) pay all applicable Federal, State, and local taxes, including income taxes, Social Security taxes under sections 3101 and 3111 of the Internal Revenue Code of 1986, and Medicare taxes; (3) maintain a valid mailing address on file with United States Citizenship and Immigration Services and report any change of address within 10 days; and (4) not be eligible for any means-tested Federal public benefit (as defined in section 403 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1613)) during the first 5 years after the date on which the alien is granted Conditional Resident Worker status, except as otherwise provided in this Act. SECTION 104. REVOCATION OF CONDITIONAL RESIDENT WORKER STATUS. (a) Sole Ground for Revocation.--Conditional Resident Worker status granted under section 101(a)(15)(W) of the Immigration and Nationality Act, as added by section 101, may be revoked only if the alien is convicted of a violent felony, as defined in section 3(7) of this Act. (b) Proceedings.-- (1) NOTICE.--Upon the conviction of an alien in Conditional Resident Worker status for a violent felony, the Secretary shall provide written notice to the alien of the intent to revoke such status. Such notice shall-- (A) specify the conviction that forms the basis for revocation; (B) inform the alien of the right to contest the revocation in a hearing before an immigration judge; and (C) be served on the alien not later than 30 days after the Secretary receives notification of the conviction. (2) HEARING.--The alien shall have the right to a hearing before an immigration judge within 60 days of the date of service of the notice described in paragraph (1). At such hearing, the alien may-- (A) be represented by counsel at no expense to the Government; (B) present evidence and witnesses; and (C) challenge the validity of the underlying conviction. (3) BURDEN OF PROOF.--The burden of proof in a revocation proceeding shall be on the Department of Homeland Security to establish, by clear and convincing evidence, that the alien has been convicted of a violent felony. (4) APPEAL.--An alien whose Conditional Resident Worker status is revoked following a hearing under paragraph (2) may appeal such revocation to the Board of Immigration Appeals and, thereafter, to the appropriate United States Court of Appeals. (c) Effect of Revocation.--Upon final revocation of Conditional Resident Worker status, the alien shall be subject to removal proceedings under section 240 of the Immigration and Nationality Act (8 U.S.C. 1229a). (d) No Other Basis for Removal.--Notwithstanding any other provision of the Immigration and Nationality Act, an alien in valid Conditional Resident Worker status shall not be subject to removal from the United States on any ground other than the revocation of such status as provided in this section. SECTION 105. PROHIBITION ON ADJUSTMENT TO IMMIGRANT STATUS OR NATURALIZATION. (a) No Adjustment of Status.--An alien in Conditional Resident Worker status under section 101(a)(15)(W) of the Immigration and Nationality Act, as added by section 101-- (1) shall not be eligible to apply for adjustment of status to that of an alien lawfully admitted for permanent residence under section 245 of the Immigration and Nationality Act (8 U.S.C. 1255) on the basis of such Conditional Resident Worker status; (2) shall not be eligible to apply for an immigrant visa under section 201, 202, or 203 of the Immigration and Nationality Act (8 U.S.C. 1151, 1152, or 1153) on the basis of such Conditional Resident Worker status; and (3) shall not accrue any period of "continuous residence" or "physical presence" for purposes of establishing eligibility for naturalization under chapter 2 of title III of the Immigration and Nationality Act (8 U.S.C. 1421 et seq.) on the basis of time spent in Conditional Resident Worker status. (b) Preservation of Other Immigration Processes.--Nothing in this section shall be construed to prevent an alien in Conditional Resident Worker status from-- (1) being the beneficiary of an independently filed immigrant visa petition by a qualifying family member who is a United States citizen or lawful permanent resident, provided that such petition is adjudicated under the same standards and subject to the same numerical limitations and waiting periods as apply to all other similarly situated aliens; or (2) applying for any other immigration benefit for which the alien may independently qualify, provided that Conditional Resident Worker status shall not be counted as a factor in favor of or against such application. SECTION 106. TAX OBLIGATIONS AND BENEFIT ELIGIBILITY. (a) Tax Obligations.-- (1) IN GENERAL.--An alien in Conditional Resident Worker status shall be subject to all Federal, State, and local tax obligations applicable to resident aliens, including-- (A) Federal income taxes under subtitle A of the Internal Revenue Code of 1986; (B) the taxes imposed by section 3101 of the Internal Revenue Code of 1986 (relating to the employee share of Social Security and Medicare taxes under the Federal Insurance Contributions Act); and (C) any applicable State and local income, sales, and property taxes. (2) INDIVIDUAL TAXPAYER IDENTIFICATION NUMBERS.--The Secretary of the Treasury shall issue a Social Security number to each alien granted Conditional Resident Worker status for purposes of tax administration and employment, in accordance with section 205(c)(2) of the Social Security Act (42 U.S.C. 405(c)(2)). (b) Social Security and Medicare Benefit Eligibility.-- (1) SOCIAL SECURITY.--An alien in Conditional Resident Worker status who satisfies the requirements for insured status under section 214 of the Social Security Act (42 U.S.C. 414), including the requirement of 40 qualifying quarters of coverage, shall be eligible for old-age, survivors, and disability insurance benefits under title II of the Social Security Act (42 U.S.C. 401 et seq.) on the same basis as any other individual who satisfies such requirements. (2) MEDICARE.--An alien in Conditional Resident Worker status who satisfies the requirements for entitlement to hospital insurance benefits under section 226 of the Social Security Act (42 U.S.C. 426) shall be eligible for benefits under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) on the same basis as any other individual who satisfies such requirements. (3) TREATMENT AS LAWFULLY PRESENT.--For purposes of eligibility for benefits under titles II and XVIII of the Social Security Act, an alien in Conditional Resident Worker status shall be treated as an alien lawfully present in the United States. (c) Employer Obligations.--Each employer of an alien in Conditional Resident Worker status shall comply with all applicable employer tax obligations, including the taxes imposed by section 3111 of the Internal Revenue Code of 1986 (relating to the employer share of Social Security and Medicare taxes) and section 3301 of such Code (relating to the Federal Unemployment Tax Act), with respect to wages paid to such alien. SECTION 107. APPLICATION PROCEDURES AND FEES. (a) Application Period.-- (1) IN GENERAL.--The Secretary shall establish an initial application period of not less than 24 months beginning not later than 180 days after the date of enactment of this Act during which eligible aliens may apply for Conditional Resident Worker status. (2) EXTENSION.--The Secretary may extend the initial application period for one or more additional periods of 12 months each if the Secretary determines that such extension is warranted. (b) Application Fee.-- (1) IN GENERAL.--The Secretary shall charge an application fee of $2,500 for each principal applicant for Conditional Resident Worker status. (2) DEPENDENTS.--The application fee for each dependent applicant under section 214(s)(3) of the Immigration and Nationality Act, as added by section 101, shall be $1,000. (3) FEE WAIVER.--The Secretary may waive or reduce the application fee for an applicant who demonstrates an inability to pay, provided that the fee shall not be reduced below $500 for a principal applicant or $250 for a dependent applicant. (4) INSTALLMENT PAYMENTS.--The Secretary shall establish a process by which applicants may pay the application fee in installments over a period not to exceed 24 months. (c) Processing.-- (1) INTERIM STATUS.--Upon the filing of a complete application and payment of the applicable fee (or first installment thereof), the Secretary shall grant the applicant interim work authorization and protection from removal pending adjudication of the application. (2) TIMELINE.--The Secretary shall adjudicate each application not later than 365 days after the date on which the application is filed. (3) DENIAL.--If an application is denied, the applicant shall be provided written notice of the reasons for denial and shall have the right to appeal such denial to the Administrative Appeals Office of United States Citizenship and Immigration Services within 30 days of such notice. (d) Fraud Prevention.-- (1) PENALTIES.--Any alien who knowingly makes a materially false statement or submits a fraudulent document in connection with an application for Conditional Resident Worker status shall be-- (A) permanently ineligible for Conditional Resident Worker status; (B) subject to a fine of not more than $10,000; and (C) subject to removal proceedings under section 240 of the Immigration and Nationality Act (8 U.S.C. 1229a). (2) CONFIDENTIALITY.--Information provided by an applicant in connection with an application for Conditional Resident Worker status may not be used for any purpose other than the adjudication of such application or a prosecution for fraud under paragraph (1), except that such information may be shared with law enforcement agencies for the purpose of investigating or prosecuting criminal activity unrelated to the applicant's immigration status. SECTION 108. AUTHORIZATION OF APPROPRIATIONS FOR TITLE I. There are authorized to be appropriated to the Secretary such sums as may be necessary to carry out this title, including-- (1) the hiring and training of additional personnel for United States Citizenship and Immigration Services to process applications under this title; (2) the development and deployment of information technology systems necessary to administer the Conditional Resident Worker program; and (3) public outreach and education regarding the availability of and requirements for Conditional Resident Worker status. TITLE II--MANDATORY EMPLOYMENT ELIGIBILITY VERIFICATION SECTION 201. MANDATORY PARTICIPATION IN THE E-VERIFY PROGRAM. (a) Amendment to the Immigration and Nationality Act.-- Section 274A of the Immigration and Nationality Act (8 U.S.C. 1324a) is amended-- (1) in subsection (a), by adding at the end the following new paragraph: "(5) MANDATORY USE OF E-VERIFY PROGRAM.-- "(A) IN GENERAL.--In addition to the requirements of subsection (b), each employer shall participate in and use the E-Verify Program (as defined in section 3(4) of the Balanced Immigration Reform Act of 2026) to verify the identity and employment eligibility of each covered worker (as defined in section 202 of such Act) hired, engaged, or contracted by the employer on or after the applicable date described in subparagraph (B). "(B) APPLICABLE DATES.-- "(i) EMPLOYERS WITH 500 OR MORE EMPLOYEES.--In the case of an employer that employed an average of 500 or more employees during the preceding calendar year, the applicable date is the date that is 12 months after the date of enactment of the Balanced Immigration Reform Act of 2026. "(ii) EMPLOYERS WITH 100 TO 499 EMPLOYEES.--In the case of an employer that employed an average of 100 to 499 employees during the preceding calendar year, the applicable date is the date that is 18 months after the date of enactment of such Act. "(iii) EMPLOYERS WITH 20 TO 99 EMPLOYEES.--In the case of an employer that employed an average of 20 to 99 employees during the preceding calendar year, the applicable date is the date that is 24 months after the date of enactment of such Act. "(iv) ALL OTHER EMPLOYERS.--In the case of any other employer, the applicable date is the date that is 36 months after the date of enactment of such Act. "(C) TIMING OF VERIFICATION.--An employer shall initiate a verification query through the E-Verify Program with respect to each covered worker not later than 3 business days after the earlier of-- "(i) the date on which the covered worker begins performing services for the employer; or "(ii) the date on which the covered worker completes the Employment Eligibility Verification Form (Form I-9) or any successor form. "(D) EXISTING WORKERS.--Not later than 36 months after the applicable date described in subparagraph (B) with respect to an employer, such employer shall use the E-Verify Program to verify the identity and employment eligibility of each covered worker who was hired, engaged, or contracted before such applicable date and who remains a covered worker of such employer. "(E) RECORDS.--Each employer shall maintain records of each E-Verify query and the results thereof for a period of not less than 3 years after the date of such query or the date on which the covered worker ceases to perform services for the employer, whichever is later."; and (2) in subsection (b), by adding at the end the following new paragraph: "(7) RELATIONSHIP TO E-VERIFY REQUIREMENT.--The requirements of paragraph (5) of subsection (a) are in addition to, and not in lieu of, the requirements of this subsection. Compliance with the E-Verify Program requirement under such paragraph (5) shall not relieve an employer of the obligation to complete and retain the Employment Eligibility Verification Form (Form I-9) as required by this subsection.". SECTION 202. SCOPE OF COVERED WORKERS. (a) Definition.--For purposes of this title and section 274A(a)(5) of the Immigration and Nationality Act, as added by section 201, the term "covered worker" means any individual who performs services for an employer in exchange for wages, compensation, or other remuneration, including-- (1) any individual employed on a full-time, part-time, temporary, or seasonal basis; (2) any individual engaged as an independent contractor or contract worker who performs services for the employer at the employer's place of business or at a location designated by the employer; (3) any individual provided to the employer by a staffing agency, temporary employment agency, or employee leasing company; (4) any individual engaged as a subcontractor, or employed by a subcontractor, who performs services in furtherance of a contract with the employer; and (5) any individual engaged through a day labor arrangement. (b) Exceptions.--The term "covered worker" does not include-- (1) an individual who performs casual domestic services in a private home on an irregular or intermittent basis, provided that such services do not exceed 20 hours in any calendar month; (2) an individual under the age of 18 who is employed by a parent or legal guardian in a family-owned business; or (3) an individual who is a volunteer and receives no wages, compensation, or other remuneration for services performed. (c) Employer Responsibility for Subcontractors.-- (1) IN GENERAL.--An employer that engages a subcontractor or independent contractor shall-- (A) include in any contract or agreement with such subcontractor or independent contractor a provision requiring the subcontractor or independent contractor to comply with the E-Verify requirements of section 274A(a)(5) of the Immigration and Nationality Act, as added by section 201; and (B) obtain from such subcontractor or independent contractor a written attestation of compliance with such requirements. (2) LIABILITY.--An employer that obtains the attestation described in paragraph (1)(B) and has no actual knowledge of a subcontractor's or independent contractor's noncompliance shall not be liable for such subcontractor's or independent contractor's failure to comply with the E-Verify requirements. SECTION 203. PENALTIES FOR NONCOMPLIANCE. (a) Civil Penalties.--Section 274A(e) of the Immigration and Nationality Act (8 U.S.C. 1324a(e)) is amended by adding at the end the following new paragraph: "(10) PENALTIES FOR FAILURE TO USE E-VERIFY PROGRAM.-- "(A) IN GENERAL.--Any employer who fails to comply with the requirements of subsection (a)(5) with respect to a covered worker (as defined in section 202 of the Balanced Immigration Reform Act of 2026) shall be subject to a civil penalty of $25,000 for each covered worker with respect to whom such a violation occurs during any 12-month period. "(B) DETERMINATION OF VIOLATIONS.--For purposes of subparagraph (A), each covered worker with respect to whom the employer has failed to initiate or complete an E-Verify query as required by subsection (a)(5) shall constitute a separate violation. "(C) GOOD FAITH DEFENSE.--It shall be an affirmative defense to a penalty under this paragraph that the employer-- "(i) made a good faith effort to comply with the requirements of subsection (a)(5); "(ii) the failure to comply was the result of a technical or procedural error that was isolated and nonrecurring; and "(iii) the employer corrected the error promptly upon discovery. "(D) PATTERN OR PRACTICE.--Any employer that engages in a pattern or practice of violations of subsection (a)(5) shall be subject to-- "(i) a civil penalty of $50,000 for each covered worker with respect to whom such a violation occurs; and "(ii) debarment from participation in any Federal contract for a period of not less than 1 year and not more than 5 years. "(E) INFLATION ADJUSTMENT.--The dollar amounts specified in subparagraphs (A) and (D)(i) shall be adjusted annually for inflation in accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note), beginning in the first calendar year after the date of enactment of the Balanced Immigration Reform Act of 2026. "(F) ENFORCEMENT.--The Secretary of Homeland Security shall have authority to investigate and impose penalties under this paragraph. The Secretary may delegate such authority to Immigration and Customs Enforcement.". (b) Anti-Discrimination Protections.--Nothing in this title shall be construed to authorize or permit any employer to-- (1) discriminate against any individual on the basis of national origin, citizenship status, or immigration status in violation of section 274B of the Immigration and Nationality Act (8 U.S.C. 1324b); or (2) use the E-Verify Program selectively or in a manner that discriminates against any individual or class of individuals on the basis of national origin, race, color, religion, sex, or any other protected characteristic. SECTION 204. RULEMAKING AND IMPLEMENTATION TIMELINE. (a) Rulemaking.--Not later than 180 days after the date of enactment of this Act, the Secretary shall promulgate regulations to carry out this title, including-- (1) procedures for employer enrollment in the E-Verify Program; (2) standards for the verification of covered workers, including independent contractors and subcontractors; (3) procedures for resolving tentative nonconfirmations and final nonconfirmations; (4) recordkeeping requirements; (5) procedures for investigating and imposing penalties under section 203; and (6) guidance on the application of the good faith defense under section 274A(e)(10)(C) of the Immigration and Nationality Act, as added by section 203. (b) System Capacity.--The Secretary shall ensure that the E-Verify Program has sufficient capacity, including information technology infrastructure and personnel, to accommodate the increased volume of queries resulting from the mandatory participation requirements of this title. (c) Accuracy Improvements.--The Secretary, in consultation with the Commissioner of Social Security and the Secretary of State, shall implement measures to improve the accuracy of the E-Verify Program, including-- (1) reducing the rate of erroneous tentative nonconfirmations; (2) incorporating additional data sources to improve identity verification; and (3) establishing a process for individuals to lock their Social Security numbers against unauthorized use in the E-Verify system. (d) Reports to Congress.--Not later than 1 year after the date of enactment of this Act, and annually thereafter for 5 years, the Secretary shall submit to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives a report on the implementation of this title, including-- (1) the number of employers enrolled in the E-Verify Program; (2) the number of queries processed; (3) the rate of tentative nonconfirmations and final nonconfirmations; (4) the number and amount of penalties imposed under section 203; (5) any recommendations for legislative or administrative changes to improve the effectiveness of the E-Verify Program; and (6) an assessment of the impact of mandatory E-Verify participation on unauthorized employment. SECTION 205. AUTHORIZATION OF APPROPRIATIONS FOR TITLE II. There are authorized to be appropriated to the Secretary $400,000,000 for each of fiscal years 2027 through 2031 to carry out this title, including-- (1) the expansion and improvement of the E-Verify Program's information technology infrastructure; (2) the hiring and training of additional personnel to administer and enforce the requirements of this title; (3) employer outreach and education programs; and (4) the development of a toll-free telephone hotline and online resources to assist employers and workers with E-Verify compliance. SECTION 301. EFFECTIVE DATE. (a) Title I.--Title I of this Act shall take effect on the date of enactment of this Act, except that the Secretary shall begin accepting applications for Conditional Resident Worker status not later than 180 days after such date of enactment. (b) Title II.--Title II of this Act shall take effect on the date of enactment of this Act, subject to the phased implementation schedule set forth in section 274A(a)(5)(B) of the Immigration and Nationality Act, as added by section 201. SECTION 302. SEVERABILITY. If any provision of this Act, or the application of such provision to any person or circumstance, is held to be unconstitutional or otherwise invalid, the remainder of this Act, and the application of such provision to other persons or circumstances, shall not be affected thereby. ``` ---