Beltway Buzz, October 3, 2025

Government Shutdown Arrives. The federal government shut down on October 1, 2025, after Congress failed to reach an agreement to extend funding for federal agencies. This is the first government shutdown since the thirty-four–day shutdown that spanned the end of 2018 and the beginning of 2019. Obviously, the current shutdown will have a significant impact on federal labor and employment agencies, as well as immigration-related agencies. As of this writing, there is no clear path for Congress to strike a deal, though the U.S. Senate is remaining in Washington, D.C., to negotiate and—potentially—vote. (The U.S. House of Representatives has already passed its continuing resolution funding bill.)

For a closer look at the shutdown, please join us for “The Federal Government Shutdown: Key Considerations for Employers on Immigration, DOL, EEOC, and More,” a webinar that will take place this Tuesday, October 7, 2025, from noon to 1:00 p.m. Eastern. Shareholders James J. Plunkett and Caroline Tang will discuss the shutdown’s impacts, the prospect for a timely resolution, and the outlook for employers and the broader regulated community. Register here.

Lawmakers Turn Focus to Outsourcing, H-1B Program. While the administration seeks changes to the H-1B visa program via presidential proclamation and the weighted selection regulatory proposal, members of Congress are also seeking to codify their own reforms to the program.

• H-1B and L-1 Visa Reform Act. This bill, which is cosponsored by the unlikely team of Senators Chuck Grassley (R-IA) and Dick Durbin (D-IL), is not a new idea, but it may gain some traction in the current political climate. First introduced in 2007 and reintroduced in 2023, the bill, if enacted as proposed, would:
  • amend the definition of “specialty occupation” to require the “attainment of a bachelor’s or higher degree in the specific specialty directly related to the occupation”;
  • increase the wages that must be paid to H-1B visa holders and impose new job posting and recruitment requirements;
  • replace the current H-1B lottery for an allocation process that prioritizes applicants’ skills, education, and salaries, as well as whether the petitioning employer has demonstrated “good corporate citizenship and compliance with the immigration laws,” which includes factors such as enrollment in E-Verify and a lack of current investigations “by any Federal agency for violation[s] of the immigration laws or labor laws”;
  • limit H-1B visa holders to a maximum stay of three years, with one additional three-year extension if they are the beneficiaries of approved employment-based immigrant petitions (pursuant to the American Competitiveness in the Twenty-first Century Act of 2000, beneficiaries would still be eligible for AC-21 extensions beyond the sixth year);
  • prohibit the placement or outsourcing of H-1B nonimmigrants with other employers, absent a waiver;
  • prohibit the use of B-1 business visitor visas in lieu of H-1B visas; and
  • include similar wage requirements and third-party worksite restrictions on L-1 visa holders.

• Halting International Relocation of Employment (HIRE) Act. Introduced by Senator Bernie Moreno (R-OH), the HIRE Act would impose a 25 percent tax on payments employers make to a “foreign person … with respect to labor or services the benefit of which is directed, directly or indirectly, to consumers located in the United States.” (Buzz readers may recall that Senator Moreno also recently introduced the SAFE HIRE Act, which would enact civil and criminal penalties for employers that knowingly hire unlawful immigrants.) As written, the bill would cover payments made to H-1B workers living in the United States.

• American Tech Workforce Act (S.2821). Introduced by Senator Jim Banks (R-IN), this bill would:
  • prohibit Optional Practical Training work authorization beyond the student’s course of studies;
  • set a one-year limitation on locating the H-1B visa holder at a third-party worksite;
  • prioritize the approval of H-1B applications that offer higher compensation rates; and
  • establish a $150,000 wage floor for H-1B visas.

• Grassley to Noem: End Foreign Student Work Authorization. On September 23, 2025, Senator Grassley, who chairs the U.S. Senate Committee on the Judiciary, sent a letter to Secretary of Homeland Security Kristi Noem asking for her “commitment to ending work authorizations for student visa holders.” In the letter, Grassley argues that providing work authorization to foreign students who have completed their studies is “incompatible with the Immigration and Nationality Act,” harms job prospects for American graduates, and poses a national security threat.

USCIS Proposes H-1B Weighted Selection Process. On September 24, 2025, U.S. Citizenship and Immigration Services (USCIS) published a notice of proposed rulemaking, titled, “Weighted Selection Process for Registrants and Petitioners Seeking to File Cap-Subject H–1B Petitions.” The proposal would “implement a weighted selection process that would generally favor the allocation of H-1B visas to higher skilled and higher paid aliens, while maintaining the opportunity for employers to secure H-1B workers at all wage levels, to better serve the Congressional intent for the H-1B program.” Fauzia N. Amlani and Stephanie Brown Howaniec have the details. During his first administration, President Donald Trump issued a similar rule, but it was struck down in federal court on procedural grounds.

DOL Launches H-1B Enforcement Program. The U.S. Department of Labor (DOL) recently launched Project Firewall, a new H-1B enforcement initiative designed to ensure that “employers prioritize qualified Americans when hiring workers [while] holding employers accountable if they abuse the H-1B visa process.” While the DOL has always had the authority to ensure that employers properly comply with the requirements of the H-1B program, under Project Firewall, the secretary of labor will be empowered to initiate investigations. According to the DOL’s announcement, “Violations may result in the collection of back wages owed to affected workers, the assessment of civil money penalties, and/or debarment from future use of the H-1B program for a prescribed period of time.” Additionally, Project Firewall will coordinate with the U.S. Department of Justice, the U.S. Equal Employment Opportunity Commission, and USCIS.

NLRB Member Nominees on the Move. Amid the shutdown turmoil, the Senate continues to carry out its other duties. On October 1, 2025, the U.S. Senate Committee on Health, Education, Labor and Pensions (HELP) held a hearing on the nominations of Scott Mayer and James Murphy to serve as members of the National Labor Relations Board (NLRB). Among topics explored at the hearing were funding and staffing at the NLRB, conflict between the National Labor Relations Act and Title VII of the Civil Rights Act of 1964, as well as the ongoing litigation involving the constitutionality of the agency. The HELP Committee is scheduled to vote on the nominations next week.

RIP, Jane Goodall. British primatologist and conservationist Jane Goodall, Ph.D., passed away this week at the age of ninety-one. Dr. Goodall’s pioneering scientific research on chimpanzees was not only influential in the halls of science and academia, but in Congress as well. Dr. Goodall’s research and her congressional testimony were instrumental in the passage of the Chimpanzee Health Improvement, Maintenance, and Protection (CHIMP) Act, which President Bill Clinton signed into law in 2000. The CHIMP Act established a sanctuary system for chimpanzees no longer needed for scientific research performed by federal agencies, such as the National Institutes of Health. Dr. Goodall also testified in support of the Captive Primate Safety Act (CPSA), which would prohibit the private ownership and sale of nonhuman primates, such as chimpanzees, orangutans, and monkeys. The CPSA was first introduced in Congress and has been passed in the House multiple times, but it has never been enacted. The bill was most recently introduced in May 2025 in the 119th Congress. President Joe Biden awarded Dr. Goodall the Presidential Medal of Freedom in January 2025.