Iowa Board of Regents Faces H-1B Visa Ban Over Foreign Adversaries

(IOWA) — With FY 2027 H-1B registration expected in March 2026, Iowa lawmakers are advancing a proposal that could block some cap-exempt university H-1B visas hires, even if federal rules allow them.

Iowa’s House Study Bill 536 (HSB 536) is not an H-1B “lottery” bill. It is a state-level hiring restriction aimed at Iowa’s public universities. Still, it lands during the most time-sensitive part of the H-1B calendar. It also affects how the Iowa Board of Regents universities plan staffing for faculty, research, and clinical roles.

📅 Key Date: FY 2027 H-1B registration is expected in March 2026, with an employment start date of October 1, 2026.

FY 2027 H-1B lottery timeline (cap-subject employers)

Most universities are cap-exempt. Many affiliated employers are not. Private-sector partners in Iowa often are cap-subject.

USCIS posts exact dates each year on its cap season page. Employers should plan backward from March.

How FY 2027 compares to last year’s lottery pressure

Competition remains the core issue for cap-subject employers. For FY 2026, USCIS reported hundreds of thousands of registrations and a selection rate in the 20–30% range. That volume drives earlier recruiting decisions. It also drives more contingency planning for workers not selected.

A second, lasting change matters for FY 2027 planning. USCIS now uses a beneficiary-centric selection process. That means one entry per person in the lottery. Multiple employers can register the same person. USCIS still counts that as one beneficiary.

⚠️ Employer Alert: The one-registration-per-beneficiary rule reduces duplicate-entry abuse. It does not increase the number of available H-1B numbers.

Section 1: Overview of HSB 536 and its scope

HSB 536 would prohibit Iowa public universities from hiring or employing certain H-1B workers. The restriction is based on citizenship. It applies when the worker is a citizen of a country designated a “foreign adversary” by the U.S. Secretary of Commerce.

The draft lists the covered countries as:

• China (including Hong Kong)
• Cuba
• Iran
• North Korea
• Russia
• Venezuela

This is an Iowa employment rule proposal. It would not change federal H-1B eligibility. USCIS would still adjudicate petitions under federal law. The practical effect would be that Iowa public universities could be barred from employing certain otherwise-eligible H-1B professionals.

Legislatively, the bill advanced out of the Iowa House Higher Education Committee on a 7–4 vote. It has not been enacted.

Section 2: Current H-1B presence at Iowa public universities

The compliance question for employers is scope. The workforce question is scale.

The baseline public count comes from Iowa Board of Regents workforce data. That dataset reflects current employees in the relevant categories. It also permits a narrower count of workers from the covered foreign adversaries list. That “subset” matters most under HSB 536.

Public reporting identifies well over one hundred current H-1B employees at the Regents universities from the listed countries. The distribution is not even across campuses. It is concentrated at the largest research institutions. That pattern is consistent with where most lab and clinical hiring occurs.

Outside estimates have also circulated. Those estimates tend to use different definitions. They may include different time windows. They may also include workers outside H-1B status. That is where discrepancy risk starts.

For compliance planning, universities should treat the Regents dashboard as the auditable baseline. They should reconcile it with HR systems and immigration case files. They should also confirm whether counts include employees on OPT, J-1, O-1, or TN.

💼 Employee Tip: If you work at a Regents university, confirm your current status type in writing. “International employee” is not the same as “H-1B worker.”

Section 3: Implications for STEM, medicine, and global careers

HSB 536 matters because public universities are major users of cap-exempt H-1B visas. They often sponsor:

• Tenure-track and teaching faculty
• Postdoctoral researchers
• Research staff in specialized labs
• Data and systems roles tied to funded projects

If enacted, the bill could narrow candidate pools for affected departments. Searches could take longer. Offer strategy could shift toward U.S. citizens and permanent residents. It could also shift toward non-covered nationalities.

In medicine, academic medical centers rely on international hiring. Roles often include faculty physicians, fellows transitioning status, and highly specialized clinicians. University hospitals also support research programs tied to clinical staffing.

For professionals from covered countries, the career pathway impact is straightforward. Employment at Iowa’s public system could become unavailable. Many would consider:

• Private universities and private health systems
• Industry employers, including cap-subject employers
• Other states without similar restrictions
• Other visa categories, if eligible

The right option depends on role, credentials, and employer type.

Section 4: Federal context and related policy changes

Federal law governs how H-1Bs are issued. It also governs cap limits.

Cap-subject H-1Bs are limited to 85,000 each year. That includes 65,000 regular cap numbers and 20,000 for the advanced degree exemption. Cap-subject cases require registration and selection.

Cap-exempt H-1Bs are different. Qualifying institutions can file year-round. They do not need a lottery selection. Many public universities qualify. Some affiliated nonprofits also qualify, depending on facts.

A state restriction operates on a different axis. Iowa can restrict whom it employs at its public universities. USCIS still decides whether a petition meets federal standards. Visa issuance remains a federal function.

There is also added budgeting pressure. Recent federal changes have increased scrutiny of specialty occupation evidence. They have also increased attention to wage leveling. A new large surcharge concept has also been announced for certain petitions. That type of federal cost change can affect university hiring cycles and grant budgeting.

On wages, the standard rule remains. The employer must pay the higher of the prevailing wage or actual wage. Universities should expect questions when the role is entry-level, but the duties are broad. Level I roles often draw more scrutiny.

Section 5: Bill status, political context, and next steps

HSB 536 has moved beyond the first committee step. It is not law today.

One material change already occurred. The bill was amended from a narrower focus to a broader foreign adversaries framework.

Iowa’s unified party control can affect timing. It can allow faster movement on priority bills. That is a procedural reality, not a forecast.

Employers should watch for:

• Any “effective date” language
• Whether current employees are covered
• Whether the restriction is limited to new hires
• How “employ” is defined for renewals and amendments

These details determine whether existing H-1B workers face disruption.

Section 6: Practical considerations for universities and applicants

Universities should separate what is happening now from what could happen later.

Current employees versus new hires. Most proposals raise “grandfathering” questions. Those answers live in statutory text. If the bill is silent, employers must plan for multiple outcomes.

University planning steps (compliance-first).

• Audit roles that rely on cap-exempt H-1B sponsorship.
• Identify positions with limited domestic supply, such as niche STEM and clinical roles.
• Build alternative pipelines, including permanent residence where appropriate.
• Keep nondiscrimination practices consistent. Avoid ad hoc screening tied to national origin.
• Recheck SOC codes and wage levels for new filings using flcdatacenter.com.

Candidate planning steps (career-first).

• Confirm whether the employer is a public Regents institution or a private entity.
• Ask whether the role is cap-exempt H-1B eligible.
• If cap-subject, plan for the March 2026 registration window.
• Prepare parallel options, including O-1 for top-tier profiles and L-1 for intracompany transfers.

For those not selected in the lottery, “next steps” should be decided quickly. Employers can file a cap-subject petition only if selected. Otherwise, consider:

• Cap-exempt H-1B with a qualifying university or nonprofit
• O-1 for extraordinary ability profiles
• L-1 for qualifying multinational transfers
• TN for eligible Canadian and Mexican professionals
• STEM OPT planning, when available and timely

⏰ Deadline: Cap-subject employers should have job details and wage planning ready by January 2026, ahead of the March registration window.

Employers should begin prevailing wage and job duty review in January 2026. That helps support specialty occupation evidence and clean LCAs. Employees should confirm employer type, cap status, and wage level by February 2026, before registration opens. Both sides should monitor USCIS cap season updates through March 2026.

📋 Official Resources:

– H-1B Program: uscis.gov/h-1b-specialty-occupations
– Cap Season: uscis.gov/h-1b-cap-season
– Prevailing Wages: flcdatacenter.com