(WASHINGTON, D.C.) Senator Tom Cotton moved to reshape the H-1B program this month with a package of bills aimed at closing cap exemptions for universities and non-profits, tightening oversight, and supporting aggressive enforcement against H-1B visa abuses. The most sweeping proposal, the Visa Cap Enforcement Act, would force higher education institutions and affiliated non-profits to compete in the standard H-1B lottery under the annual cap of 85,000 visas—65,000 for the regular pool and 20,000 for workers with advanced U.S. degrees. Cotton also backs President Trump’s recent move to impose a $100,000 fee on all new H-1B petitions filed after September 21, 2025, and the Department of Labor’s “Project Firewall,” a new enforcement surge targeting fraud and wage violations.
The push arrives as the political fight over high-skilled immigration intensifies. Supporters argue the current structure allows large employers, research hospitals, and universities to bypass the cap and hire unlimited H-1B workers. Critics warn that removing exemptions will cut off talent pipelines, harm research, and reduce staffing for labs, clinics, and classrooms that rely on hard-to-fill roles.
Policy proposals and enforcement moves
Cotton’s legislative package centers on the Visa Cap Enforcement Act, which would end four major H-1B exemptions. Most notably, it would:
- Remove the carve-outs for higher education institutions and non-profits, which for years have been able to file outside the cap.
- Eliminate the separate cap advantage for foreign workers with a U.S. master’s degree or higher, folding them back into the standard competition for visas.
According to the senator’s office, the goal is straightforward: return all employers to a single system subject to the numerical limit and reduce incentives that, in Cotton’s view, have distorted hiring away from U.S. workers.
A related bill, the Colleges for the American People (CAP) Act (H.R. 4743/S. 2567), introduced in late July 2025 by Cotton and others, focuses specifically on higher education by repealing Section 214(g)(5)(A) of the Immigration and Nationality Act. That section is the legal basis for the cap exemption for universities and affiliated non-profits.
Key points of the CAP Act:
– Current H-1B employees at these institutions would not be affected retroactively.
– Going forward, new hires would enter the regular lottery and face the same odds as private-sector applicants.
Cotton also supports two major administration actions outside Congress:
– The presidential proclamation imposing a $100,000 filing fee on all new H-1B petitions (effective for petitions filed after September 21, 2025), intended to deter low-wage placements and reduce speculative filings.
– The Department of Labor’s Project Firewall (launched in September 2025), focusing on alleged fraud, wage underpayment, and cases where DOL believes employers sideline U.S. workers.
Together, these measures front-load costs and risks for employers before they get to the lottery and raise the stakes for compliance after approval.
According to analysis by VisaVerge.com, the combined effect of the Visa Cap Enforcement Act, the CAP Act, and stepped-up enforcement would be felt first by universities and research groups that rely on year‑round recruitment cycles and hard-to-fill roles in STEM and healthcare. If enacted, these institutions would have to plan hires around the spring cap season like private companies, and they would face higher costs and longer timelines.
Broader legislative context and complementary proposals
Bipartisan interest in tougher standards isn’t limited to Cotton’s bills. Separate Senate proposals would:
- Raise wages,
- Require public job postings before hiring H-1B workers,
- Narrow eligibility for specialty occupations,
- Increase enforcement resources for both H-1B and L-1 programs.
Advocates point to years of complaints about labor substitution, third-party placements, and inconsistent wage levels. Project Firewall signals that, even without new laws, federal agencies will pursue more audits and investigations in the coming months.
Immediate practical effects for employers:
1. Any new H-1B petition now carries the additional $100,000 fee—fundamentally changing cost calculus for entry-level roles, outsourcing models, and high-volume filing strategies.
2. DOL scrutiny is likely to rise—especially for firms with past wage findings or heavy third‑party placement.
Universities and non-profits—long shielded by cap exemptions—may have to recalibrate recruitment timelines and budgets if Congress advances the Visa Cap Enforcement Act or the CAP Act.
Legislative outlook and what comes next
Political dynamics:
– Despite Republican control in the House, the Senate picture is less certain. The Republican majority is slim; a filibuster would require 60 votes to overcome.
– Democratic leaders have signaled strong opposition to removing higher education exemptions.
– Some Republican senators from states with major research universities have shown reluctance.
Likely path: bipartisan compromise focused on wage rules and stricter oversight, rather than sweeping repeal of all cap exemptions.
House prospects:
– Cotton’s allies may find traction on messaging bills spotlighting H-1B abuses.
– Conversion to law will depend on Senate votes and whether leadership in both chambers can agree on narrower reforms that keep key academic pipelines intact.
Cotton has said he will introduce two additional bills aimed at tightening program oversight and prioritizing U.S. workers. Details were not public at the time of his announcement, but the direction is clear: limit exemptions, increase costs where possible, and expand enforcement.
Combined with Project Firewall, employers should expect:
– More audits of prevailing wage levels,
– Tighter scrutiny of specialty occupation justifications,
– Increased focus on third-party placement chains.
Impact on current holders, future hires, and employers
What happens to current cap-exempt H-1B holders?
– Under the CAP Act draft, there is no retroactive effect for current H-1B holders at universities and affiliated non-profits.
– They could keep their status and continue renewals under existing terms.
– The strain would land on future hiring cohorts, who would be pushed into the capped lottery along with private-sector candidates.
Operational impacts for employers and schools:
– Align faculty offers, lab staffing, and clinical hiring with the single annual lottery (typically opens in March for an October 1 start date).
– Expect potential delays to projects and patient services—particularly where talent shortages are severe.
Compliance recommendations:
– Revisit wage levels, job descriptions, and worksites to meet heightened scrutiny.
– Ensure wage consistency, accurate Level selection, and clear specialty occupation duties—these will be front-line review items for DOL audits.
– For firms that rely on third-party placement, document supervisory control and specialty duties at end-client sites carefully—those details often drive audit outcomes.
Budgeting and hiring strategy changes:
– The $100,000 fee may prompt employers to reserve filings for senior roles or hard-to-fill specialties and reduce volume for entry-level jobs.
– Universities might redirect funds to permanent roles or consider J-1 research categories for non-employment-based placements—though these are imperfect substitutes for H-1B.
Resources and official guidance
For official program basics, see the USCIS H-1B page explaining eligibility, cap structure, and specialty occupation criteria:
– United States 🇺🇸 Citizenship and Immigration Services: H-1B Specialty Occupations
Employers filing petitions continue to use Form I-129:
– Official form and instructions: Form I-129
Key takeaways and next steps
Enforcement will not wait for Congress: Project Firewall is live, and the presidential fee applies to filings after September 21, 2025. Whether or not lawmakers pass the Visa Cap Enforcement Act or the CAP Act, the H-1B program has entered a stricter phase.
Stakeholder positions:
– University leaders warn repeal of cap exemptions would disrupt research cycles and reduce competitiveness for global talent.
– Hospital systems warn recruiting specialist physicians, clinical pharmacists, and allied health professionals would become harder during rising demand.
– Supporters of Cotton’s approach say cap exemptions let large institutions build parallel hiring tracks that disadvantage U.S. workers and small employers that must compete in the lottery.
For foreign students:
– Removal of the advanced-degree set-aside would be a major shift. Today, U.S. master’s/higher degree holders benefit from a separate allocation, improving their odds. Cotton’s plan would end that preference, increasing reliance on timing, Optional Practical Training, and careful job search planning.
Practical advice for employers and counsel:
– Assume higher front-end costs and faster agency follow-up on complaints.
– Expect more document requests tied to wage levels and end-client oversight.
– Consider early case scoping, conservative job titles, and robust evidence for specialty occupation claims.
As the policy debate continues, plan for tighter compliance, realistic budgeting, and more strategic hiring from day one.
This Article in a Nutshell
In September 2025 Senator Tom Cotton proposed a legislative package, led by the Visa Cap Enforcement Act, to end major H-1B cap exemptions for higher education institutions and affiliated nonprofits and to fold the U.S. advanced-degree set-aside into the single 85,000 annual cap. The CAP Act specifically targets Section 214(g)(5)(A) of the Immigration and Nationality Act to remove university exemptions. Concurrently, the administration imposed a $100,000 fee on new H-1B filings after September 21, 2025, and the Department of Labor launched Project Firewall to increase audits and enforcement against fraud and wage violations. Analysts warn universities, research groups, and healthcare employers will face higher costs, longer hiring timelines, and reduced hiring flexibility. Political obstacles in the Senate and bipartisan pushes for wage and oversight reforms suggest any final law may be narrower, with stakeholders urged to update compliance, recruitment timing, and budgeting immediately.
