H-1B visa reform alert: New bill to remove university exemptions, reshaping US skilled work visas
The legislation essentially seeks to make more individuals count against the annual H-1B visa cap by removing some of the current exemptions
- Oct 1, 2025,
- Updated Oct 2, 2025 5:45 PM IST
Senator Tom Cotton (R-Arkansas) has introduced the Visa Cap Enforcement Act, aiming to restrict universities, research institutions, and non-profits from hiring unlimited foreign workers under the H-1B visa program.
“Colleges and universities shouldn’t get special treatment for bringing in woke and anti-American professors from around the world. My bill closes these loopholes that universities have abused for far too long,” said Senator Cotton. The legislation essentially seeks to make more individuals count against the annual H-1B visa cap by removing some of the current exemptions.
How H-1B works today
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There is a yearly limit (cap) on H-1B visas: 65,000, plus 20,000 for U.S. master’s degree holders.
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Certain workers are “cap-exempt,” including:
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Employees at universities
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Nonprofit or government research institutions
-
H-1B holders switching jobs in certain situations
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Key changes under the bill
1. 3-Year Rule
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Current: H-1B holders can often extend or switch employers without re-entering the lottery.
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Bill: After three years on H-1B, workers must be counted under the cap again.
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Effect: Even current U.S.-based H-1B employees may need to re-win the lottery after three years.
2. Universities & Research Institutions Lose Exemption
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Current: Universities, hospitals, labs, and nonprofit research groups can hire H-1Bs outside the cap.
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Bill: These employers must now compete in the lottery like everyone else.
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Effect: Could make hiring foreign researchers or doctors significantly harder.
3. Job Changes Must Count Against the Cap
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Current: Switching employers usually does not count against the cap.
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Bill: Every new job petition must be counted.
-
Effect: H-1B workers face fewer opportunities and reduced bargaining power.
4. Closing Internal Loopholes
-
Current: Some technical rules allow status changes without hitting the cap again.
-
Bill: These provisions would be eliminated.
-
Effect: The cap applies in more situations, tightening overall access to H-1B visas.
The Visa Cap Enforcement Act marks a significant shift in U.S. immigration policy, particularly affecting higher education and research sectors that have relied on cap exemptions for staffing. Universities, labs, and healthcare institutions may need to rethink recruitment strategies as competition for limited H-1B visas intensifies.
Senator Tom Cotton (R-Arkansas) has introduced the Visa Cap Enforcement Act, aiming to restrict universities, research institutions, and non-profits from hiring unlimited foreign workers under the H-1B visa program.
“Colleges and universities shouldn’t get special treatment for bringing in woke and anti-American professors from around the world. My bill closes these loopholes that universities have abused for far too long,” said Senator Cotton. The legislation essentially seeks to make more individuals count against the annual H-1B visa cap by removing some of the current exemptions.
How H-1B works today
-
There is a yearly limit (cap) on H-1B visas: 65,000, plus 20,000 for U.S. master’s degree holders.
-
Certain workers are “cap-exempt,” including:
-
Employees at universities
-
Nonprofit or government research institutions
-
H-1B holders switching jobs in certain situations
-
Key changes under the bill
1. 3-Year Rule
-
Current: H-1B holders can often extend or switch employers without re-entering the lottery.
-
Bill: After three years on H-1B, workers must be counted under the cap again.
-
Effect: Even current U.S.-based H-1B employees may need to re-win the lottery after three years.
2. Universities & Research Institutions Lose Exemption
-
Current: Universities, hospitals, labs, and nonprofit research groups can hire H-1Bs outside the cap.
Advertisement -
Bill: These employers must now compete in the lottery like everyone else.
-
Effect: Could make hiring foreign researchers or doctors significantly harder.
3. Job Changes Must Count Against the Cap
-
Current: Switching employers usually does not count against the cap.
-
Bill: Every new job petition must be counted.
-
Effect: H-1B workers face fewer opportunities and reduced bargaining power.
4. Closing Internal Loopholes
-
Current: Some technical rules allow status changes without hitting the cap again.
-
Bill: These provisions would be eliminated.
-
Effect: The cap applies in more situations, tightening overall access to H-1B visas.
The Visa Cap Enforcement Act marks a significant shift in U.S. immigration policy, particularly affecting higher education and research sectors that have relied on cap exemptions for staffing. Universities, labs, and healthcare institutions may need to rethink recruitment strategies as competition for limited H-1B visas intensifies.