Is it really at expense of universities? From what I understand, most are getting Master Degrees but very few are doing research. I've seen plenty of H-1B coworkers with Master Degrees but very few did research, it was just extra computer science courses.
Majority of CS/EE/MBA type grad programs across all universities are heavily enrolled by foreign students. Most of them end up paying out of state fee.
This is a significant chunk of revenue for many colleges to keep their budget in shape.
Even in conservative states, lots of colleges are reliant on this stream of income. A loss of this stream is going to put a strain on them to balance their budget, or seek more help from govt.
Yes, it brings in more income for the government at the expense of universities.
It’s a great way to remove h1b fraud and abuse but you do burn down a bit of your garage in the process of getting rid of the rat.