As of July 24, 2025, a major change is under consideration in U.S. immigration policy that could affect universities, research institutions, and thousands of international professionals. The Colleges for the American People Act of 2025, introduced by Republican Representatives Tom Tiffany (WI) and Andrew Clyde (GA), seeks to end the long-standing H 1B exemption for higher education institutions and related research organizations. This update explains what the bill proposes, who will be affected, when changes could take effect, what actions are required, and the broader implications for pending and future H-1B applications.
Summary of What Changed
The Colleges for the American People Act of 2025 is a proposed law that would eliminate the H 1B exemption currently enjoyed by U.S. universities, nonprofit research organizations, and government research institutions. Right now, these groups can hire foreign workers on H-1B visas without worrying about the annual cap of 65,000 visas (plus 20,000 for those with U.S. master’s degrees). If the bill becomes law, these institutions would have to compete with private companies for the same limited number of H-1B visas each year.
Who Is Affected
- Universities and Research Institutions: These organizations would lose their special ability to hire foreign workers year-round. They would have to enter the annual H-1B lottery like all other employers.
- Current H-1B Holders at Universities: The bill is not retroactive. If you already have an H-1B through a university or research institution, you can still apply for extensions without being counted toward the cap.
- Prospective International Faculty and Researchers: Anyone hoping to work at a U.S. university or research institution on an H-1B visa in the future would face the same lottery odds as those applying to work at private companies.
- American Workers: The bill is designed to increase job opportunities for U.S. citizens and permanent residents in higher education and research jobs.
- Employers in the Private Sector: Companies may face more competition for H-1B slots as universities and research institutions join the annual lottery.
Effective Dates
- Current Status: The bill was introduced in July 2025 and is under review in the U.S. House of Representatives. It has not yet become law.
- If Passed: The changes would apply to new H-1B petitions filed after the law’s effective date. Current H-1B employees at universities would not be affected retroactively.
- Pending Applications: If you are applying for an H-1B through a university before the law takes effect, your application will follow the current rules. After the law takes effect, all new applications will be subject to the cap and lottery.
Required Actions
- Universities and Research Institutions:
- Review your hiring plans for international faculty and researchers.
- Prepare for possible changes to the H-1B process, including the need to enter the annual lottery.
- Stay in close contact with your Office of International Services or legal counsel for updates.
- Current H-1B Holders at Universities:
- If you need to extend your H-1B status, you can still do so under the current rules, even if the law passes.
- Keep records of your employment and visa status in case you need to show you were already employed before the law changed.
- Prospective International Applicants:
- If you plan to apply for an H-1B through a university, try to submit your application before any new law takes effect.
- Be aware that future applications may be subject to the annual cap and lottery.
- Employers in All Sectors:
- Monitor updates on the bill’s progress.
- Prepare for increased competition for H-1B visas if the exemption is removed.
Background: The Current H-1B System and Exemption
The H-1B visa is a popular way for U.S. employers to hire foreign workers in “specialty occupations,” which usually require at least a bachelor’s degree. Each year, there is a cap of 65,000 H-1B visas, plus an extra 20,000 for people with U.S. master’s degrees. Most employers must enter a lottery for these visas, which are in high demand.
However, universities, nonprofit research organizations, and government research institutions have been exempt from this cap. This means they can hire foreign workers on H-1B visas at any time of year, without worrying about the lottery or running out of slots. This H 1B exemption was designed to help U.S. institutions stay competitive in research and education by bringing in global talent, especially in science, technology, engineering, and math (STEM) fields.
Why Is This Changing?
Supporters of the bill, including Rep. Tiffany and Rep. Clyde, argue that the exemption allows universities to bypass American workers and sometimes pay lower wages to foreign hires. They say this “backdoor hiring” hurts American workers who have spent years earning degrees, only to see jobs go to foreign workers on special visas. The bill is part of a broader push to prioritize American workers in all sectors, including higher education.
On the other hand, many universities, research organizations, and some tech industry leaders say the exemption is critical for keeping the United States 🇺🇸 a leader in research and innovation. They argue that there are not enough qualified American workers in some specialized fields, and that international faculty and researchers help drive progress and teaching excellence.
Recent H-1B Cap Data and Lottery Changes
For the 2025 fiscal year, the H-1B cap (65,000 plus 20,000 for U.S. master’s degree holders) was reached in early December 2024. There were 470,432 eligible registrations, down from 758,994 the previous year. This drop was due to new rules aimed at reducing fraud and duplicate entries. The Department of Homeland Security (DHS) now uses a beneficiary-centered selection process, meaning each person is counted only once, no matter how many employers submit applications for them. This change has made the process fairer but also more competitive.
Step-by-Step: How the H-1B Cap-Exempt Process Works Now
- Employer Eligibility: The employer must be a U.S. accredited higher education institution, nonprofit research organization, or government research institution.
- Job Offer: The job must require at least a bachelor’s degree in a specialty field.
- Labor Condition Application (LCA): The employer files an LCA with the Department of Labor, promising to pay the required wage and meet other conditions.
- Petition Filing: The employer submits Form I-129 with supporting documents to U.S. Citizenship and Immigration Services (USCIS).
- No Cap or Lottery: The petition can be filed any time during the year and is not subject to the annual cap or lottery.
- Approval and Visa Issuance: If approved, the foreign worker can start work or apply for a visa if they are outside the United States 🇺🇸.
If the Colleges for the American People Act of 2025 passes, steps 5 and 6 would change. Universities and research institutions would have to enter the annual H-1B lottery, which has a limited number of slots and a narrow filing window each spring.
Implications for Pending and Future Applications
- Pending Applications: If you have already applied for an H-1B through a university or research institution before the law takes effect, your application will be processed under the current rules.
- Future Applications: After the law takes effect, all new H-1B applications from universities and research institutions will be subject to the annual cap and lottery. This could make it much harder for these employers to hire international talent.
- Extensions for Current Employees: If you are already working at a university on an H-1B, you can still apply for extensions without being counted toward the cap, even after the law changes.
Broader Implications and Stakeholder Responses
- For Universities and Research Institutions:
- Loss of Flexibility: No more year-round hiring. All new hires must go through the annual lottery.
- Increased Competition: Universities will compete with private companies for the same limited number of H-1B visas.
- Possible Staffing Shortages: Especially in STEM, medical, and other high-demand fields where there are not enough qualified American workers.
- For American Workers:
- More Job Opportunities: The bill aims to make more jobs available to U.S. citizens and permanent residents in higher education and research.
- Wage Impact: Supporters believe it will help prevent wage suppression by reducing the hiring of foreign workers at lower salaries.
- For International Talent:
- Reduced Access: It will be harder for international faculty and researchers to get jobs at U.S. universities.
- Global Competitiveness: Critics warn this could make the United States 🇺🇸 less attractive to top global talent, hurting research and innovation.
- For Private Employers:
- More Competition: Companies may find it even harder to secure H-1B visas for their own hires.
Political and Industry Reactions
- Rep. Tom Tiffany (WI): Strongly supports ending the H 1B exemption, saying it will help American workers.
- Rep. Andrew Clyde (GA): Co-sponsor, also supports ending what he calls “backdoor hiring.”
- Vice President J.D. Vance: Criticized tech companies for hiring more H-1B workers while laying off American employees, calling the practice “dishonest.”
- Higher Education Associations: Groups like the American Council on Education (ACE) strongly oppose the bill, saying it will harm U.S. research and innovation.
- Industry Groups: Some tech and business organizations warn that removing the exemption will hurt the U.S. talent pipeline and global competitiveness.
Recent Regulatory Changes
In January 2025, the Department of Homeland Security introduced new rules for the H-1B lottery. Now, each person is counted only once in the lottery, no matter how many employers submit applications for them. This has reduced fraud and duplicate entries but has also made the process more competitive. Employers must now provide stricter documentation and follow tighter compliance rules for all H-1B petitions.
Future Outlook and What to Watch For
- Legislative Path: The bill is still in committee and faces strong opposition from universities and research organizations. It may be amended or changed before becoming law.
- Possible Compromises: Some lawmakers have suggested reforms to prevent abuse without fully ending the exemption, but no formal proposals have been made yet.
- Practical Implications: If the law passes, it will take effect for new H-1B petitions filed after the effective date. Current university H-1B holders will be allowed to extend their status under the old rules.
Official Resources and Next Steps
- For the latest information on the H-1B program, including forms and updates, visit the USCIS H-1B Specialty Occupations page.
- To track the progress of the Colleges for the American People Act of 2025, check congress.gov.
- If you work at a university or research institution, contact your Office of International Services or legal counsel for guidance.
- For advocacy and policy updates, visit the American Council on Education at acenet.edu.
Key Takeaways and Immediate Guidance
- If you are a university or research institution: Review your hiring plans and prepare for possible changes to the H-1B process. Stay informed about the bill’s progress and be ready to adjust your recruitment strategies.
- If you are a current H-1B holder at a university: You can still apply for extensions under the current rules, even if the law changes.
- If you are an international applicant: Try to submit your H-1B application before any new law takes effect. Be aware that future applications may be subject to the annual cap and lottery.
- If you are an American worker: The bill aims to increase your job opportunities in higher education and research.
- For everyone: Monitor updates from official sources and consult with immigration professionals or your institution’s international office for the latest guidance.
As reported by VisaVerge.com, the Colleges for the American People Act of 2025 represents a major shift in how the United States 🇺🇸 manages its global talent pipeline in higher education and research. The debate between prioritizing American workers and maintaining the country’s leadership in research and innovation is likely to continue as the bill moves through Congress. For now, staying informed and prepared is the best way to respond to these potential changes.
Learn Today
H-1B Visa → A U.S. work visa for foreign professionals in specialty occupations requiring at least a bachelor’s degree.
H-1B Exemption → A status allowing universities and certain research institutions to hire H-1B workers without visa caps or lottery.
Annual Cap → The yearly legal limit of 65,000 H-1B visas plus 20,000 for U.S. master’s degree holders.
H-1B Lottery → A selection process used when the number of H-1B applicants exceeds the annual visa cap.
Labor Condition Application → A Department of Labor form employers must file to attest wages and working conditions for H-1B employees.
This Article in a Nutshell
The Colleges for the American People Act of 2025 proposes removing the H-1B exemption for universities, forcing them to compete for visas annually. This impacts international faculty hiring and U.S. workforce opportunities, stirring debate between supporting American workers and maintaining U.S. research leadership in science and technology.
— By VisaVerge.com
