A fresh challenge to the H-1B visa program has emerged from Capitol Hill. This time, the focus is not on tech companies or outsourcing firms, but on higher education institutions across the United States.
Republican Representatives Tom Tiffany and Andrew Clyde have introduced the Colleges for the American People Act, a proposal aimed at closing what they describe as a loophole in the H-1B visa exception policy. If this bill is passed, the exemption for colleges and universities will be removed, and they will also have to follow the same rules that private companies have to follow under the H-1B visa cap.
Current H-1B Visa Framework and the Exception for Colleges
The H-1B visa is for jobs where US companies need an expert, such as in engineering, IT, or research fields. Each fiscal year, the H-1B visa cap limits the number of new visas issued to 65,000. An additional 20,000 slots are available for those holding advanced degrees from U.S. institutions.
However, under current rules, non-profit research institutions and higher education employers are exempt from the H-1B visa cap. This has allowed universities to sponsor faculty and researchers year-round, without competing in the limited lottery system that private sector employers must navigate.
The Colleges for the American People Act directly targets this exemption.
Why Lawmakers Want to Remove the H-1B Visa Exception
According to Rep. Tiffany, the exception has enabled a form of “backdoor hiring,” where universities prioritize foreign workers over qualified American graduates. In a statement, he noted:
“American students spend years earning degrees, only to watch universities hand good-paying jobs to foreign workers on special visas.”
Supporters of the Colleges for the American People Act argue that removing the H-1B visa exception would level the playing field and ensure that taxpayer-funded institutions invest in the domestic workforce. They believe H-1B for higher education should follow the same rules as the private sector to prevent any hiring loopholes.
Impact of the Colleges for the American People Act on Universities
If this bill becomes law, colleges and universities will no longer have a separate track. They’ll need to enter the annual lottery like every other employer, regardless of the job role or academic relevance. This would:
- Apply the H-1B visa cap to all university-sponsored hires
- Make faculty recruitment more competitive and time-sensitive
- Create delays and unpredictability in hiring international talent
- Force institutions to rethink staffing models, especially in STEM fields
Supporters of the H-1B for higher education policy argue that removing the exception could have unintended consequences on research, innovation, and global academic competitiveness.
Not Retroactive – But Still Disruptive
If this bill is passed, it will not be retroactive. Those who are already on H-1B visa through university can apply their extension without coming under the cap. But new applicants will have to follow the regular process.
Given that USCIS recently announced it has already received enough petitions to meet the H-1B visa cap for FY2026, this change could make future hiring even more difficult for academic institutions.
A Larger Debate Over H-1B Reform
This new bill enters the arena at a time when the Department of Homeland Security (DHS) is also evaluating structural changes to the H-1B visa system. A major proposal is that now instead of the lottery system there should be wage-based selection, in which positions with higher salaries will be given priority, so that misuse can be reduced.
During the Trump administration, a similar rule was introduced but later shelved under the Biden administration. Now, with political focus shifting back to immigration and labor policies, the H-1B visa debate is once again at the center of legislative activity.
The Colleges for the American People Act adds yet another layer to this broader conversation, raising questions about who should benefit from employment-based immigration in education and why.
What This Means for International Faculty and Researchers
For many years, H-1B for higher education has been a reliable option for scholars, scientists, and professors who come to the U.S. from around the world. Universities did not have to follow the cap, so they could hire specialized talent according to academic need.
Removing the H-1B visa exception could:
- Discourage international scholars from applying to U.S. universities
- Reduce diversity and global perspectives in classrooms
- Increase competition for limited H-1B visa slots, disadvantaging public institutions
- Push research institutions to look for alternative visa options like O-1 or J-1, which come with their own challenges
Is the Proposal Likely to Pass?
The fate of the Colleges for the American People Act depends on bipartisan consensus, which may be hard to secure. While Republicans argue the bill protects American workers, opponents stress that universities play a different role than private corporations and should retain flexibility in hiring top talent.
The higher education sector may oppose this bill because it needs global talent for research, teaching, and innovation.
But this bill sends a strong message – lawmakers are re-evaluating every aspect of the H-1B visa system, and nothing is fixed yet.
The Road Ahead for H-1B in Higher Education
The proposed elimination of the H-1B visa exception under the Colleges for the American People Act could significantly change how U.S. universities hire faculty from abroad. With the H-1B visa cap already making it difficult for employers to secure talent, applying those same limits to colleges may disrupt academic staffing and research programs nationwide.
The Orange Law team closely follows every change to immigration rules, especially those that impact international scholars and colleges. If you’re a scholar, professor, or administrator involved in H-1B for higher education, these policy shifts could affect your hiring timeline, visa eligibility, or extension process.
As this legislative debate continues, both current and future applicants should stay informed and consult an experienced immigration attorney before making any employment or visa-related decisions.
Need Guidance on H-1B Visa Rules?
Orange Law is here to help you navigate complex immigration policies with clarity and precision. Whether you’re a university professional or an institution planning to hire, our team provides strategic legal advice tailored to your needs.
Schedule a consultation today at www.orangelaw.us or call 713-885-9787 to speak with an attorney.
