The US Congress has passed a reforms bill which exempts 20,000 foreign students, who pass out of universities in the country with masters or doctorate degrees, from the annual cap on 65,000 H-1B visas given to foreigners seeking work in America.

The move would benefit several thousand students, including from India, who failed to figure on the list of 65,000 H-1B visas issued this year.

However, the increase is only for foreign nationals who have received masters or doctoral degrees from American universities. The reforms bill exempt up to 20,000 Masters and PhD graduates of US universities from the annual 65,000 H-1B cap.

The Bill is part of the $388 billion Appropriations Bill for the year 2005. The bill was sponsored by Senator Saxby Chambliss (Republican from Georgia) and Representative Lamar Smith (Republican from Texas).

The H1-B visa limit till last year was 195,000 for India nations.