02 Sep August 2026 US Immigration Updates: What Employers, Visa Holders and Applicants Need to Know
DHS Proposes New $103,265 Fee on Cap-Subject H-1B Petitions
On August 24, 2026, the Department of Homeland Security (DHS) announced that it has issued a proposed rule to establish a $103,265 fee for all H-1B cap-subject petitions, including those eligible for the advanced-degree exemption. The proposed fee would be paid at the time of filing and would be imposed in addition to all other applicable fees or payments, DHS said. A federal judge blocked a similar fee on new H-1B visas last June.
Under the proposed rule, the additional fee would not apply to H-1B petitions that are not subject to the cap, such as petitions filed by certain nonprofit research organizations, governmental research organizations, and institutions of higher education.
DHS estimates the proposed fee would generate approximately $8.8 billion annually, based on a projected annual volume of 85,000 H-1B cap-subject petitions. Commenters warned of potential far-reaching effects. Doug Rand, a senior official for U.S. Citizenship and Immigration Services under the Biden administration, said, “It’s much bigger in scope” than the previously proposed fee. “This regulation, if enacted, would have catastrophic effects on America’s global talent pipeline.”
Comments must be submitted by September 24, 2026.
DHS Considers Elimination of 60-Day Grace Period Following Termination of Sponsored Employment
The Department of Homeland Security (DHS) plans to propose a new rule that would eliminate the 60-day grace period currently available to noncitizen workers following termination of sponsored employment.
The 60-day grace period was added in 2017 and applies to H-1B, H-1B1, L-1, O-1, TN, E-1, E-2, and E-3 workers as well as their dependents. Currently, when an employer terminates a temporary worker in one of these categories before the end of the authorized period of stay, the worker may generally remain in valid status for up to 60 days. During this grace period, the individual may seek sponsorship with another employer, change to a new status, or arrange to leave the United States without concerns about being out of status. A grace period enables individuals to make other arrangements following an unexpected termination as well, including addressing a spouse’s employment or a child’s schooling.
If the rule is finalized as anticipated, employees who are terminated early from their positions and their family members may need to leave the United States immediately and (if they wish) apply for new status from abroad at a U.S. embassy or consular post. Where practical, employers may wish to consider providing advance notice of termination to give affected employees time to make arrangements or seek sponsorship from another employer. For H-1B employees, in certain circumstances involving employer-initiated termination, the employer must offer to pay the reasonable cost of the employee’s return transportation abroad.
The text of the proposed rule is not yet publicly available. The Office of Management and Budget is reviewing the rule before its expected publication in the Federal Register. The proposed rule is expected to be subject to a public notice-and-comment period before it becomes final.
Trump Administration Plans to Nix Work Permits for H-4 Spouses
The Trump administration plans to issue a rule to eliminate employment authorization eligibility for spouses of H-1B workers. A notice of the proposed rulemaking, was added to a long-term regulatory agenda for the Department of Homeland Security, although there is no target date for its release.
The planned rule is the latest in a barrage of Trump administration measures restricting H-1B employment, which includes a proposed a new $103,265 fee for new hires through the program and the proposal to eliminate a discretionary 60-day grace period for nonimmigrant workers to leave the United States or change status in the United States.
DHS Issues Interim Rule on Mandatory Electronic Filing
On August 10, 2026, the Department of Homeland Security announced an interim final rule, effective August 11, 2026, to allow U.S. Citizenship and Immigration Services (USCIS) to require mandatory electronic filing (e-filing) of certain benefit requests. The rule provides a framework for the process USCIS will follow to require a benefit request to be e-filed and how a waiver of the e-filing requirement for individuals unable to file electronically may be requested. USCIS said the rule “is intended to increase digital intake and processing to move USCIS and requestors from a mostly paper process to an electronic process.”
Comments must be received by October 13, 2026.
DOS Issues Final Rule on Permanent Visa Bond Program for B-1/B-2 Visitors
The Department of State (DOS) has issued a final rule to make permanent the Visa Bond Pilot Program. Under the program, an applicant for a visa as a temporary visitor for business or pleasure (B-1/B-2) may be required to submit a visa bond “to ensure that the alien maintains his or her nonimmigrant status and departs as required. Consular officers may require covered nonimmigrant visa applicants to post a bond of up to $20,000 as a condition of visa issuance, as determined by the consular officers.”
DOS said that visa bonds may be required for certain visa applicants “who are nationals of countries with high overstay rates, deficient information sharing, insufficient identity verification and criminal records, and that need improvement in the area of screening and vetting and the security of travel and civil documents, including in the granting of citizenship.”
DOS said it will announce the covered countries via https://www.travel.state.gov “with 15 days from announcement to enactment for any countries added and with immediate effect for any countries removed from the list. Nationals of countries that are subject to a visa bond requirement under the Visa Bond Pilot Program will continue to be subject to a visa bond requirement pursuant to this rule on its effective date. The countries may be modified on a rolling basis, with removal effective immediately upon the removal date.”
The list of countries, which includes varying effective dates, was last updated May 13, 2026. That list includes 50 countries, including 30 African nations. DOS said the list “may be modified on a rolling basis.” It includes Algeria, Angola, Antigua and Barbuda, Bangladesh, Benin, Bhutan, Botswana, Burundi, Cabo Verde, Cambodia, the Central African Republic, Côte d’Ivoire, Cuba, Djibouti, Dominica, Ethiopia, Fiji, Gabon, The Gambia, Georgia, Grenada, Guinea, Guinea‑Bissau, the Kyrgyz Republic, Lesotho, Malawi, Mauritania, Mauritius, Mongolia, Mozambique, Namibia, Nepal, Nicaragua, Nigeria, Papua New Guinea, São Tomé and Príncipe, Senegal, Seychelles, Tajikistan, Tanzania, Togo, Tonga, Tunisia, Turkmenistan, Tuvalu, Uganda, Vanuatu, Venezuela, Zambia, and Zimbabwe.
USCIS Clarifies That Immigration Benefit Requests May Be Denied Without RFEs
On August 5, 2026, U.S. Citizenship and Immigration Services (USCIS) clarified that applications for immigration benefits can be denied without first issuing a Request for Evidence (RFE) or a Notice of Intent to Deny if “all required initial evidence” has not been submitted with the application.
USCIS noted that its form instructions “specify all required initial evidence for every benefit request, giving requestors all the information needed to comply.” The agency said that “prior policy allowed frivolous or substantially incomplete filings to slow USCIS processing for others waiting in line.” USCIS’s updated policy guidance states that it targets “nefarious filing practices such as frivolous and placeholder filings to secure ancillary benefits.”
DHS Final Rule Requires 9-11 Biometric Fee for Certain H-1B and L-1 Nonimmigrant Visa Petitions
On August 10, 2026, the Department of Homeland Security (DHS) plans to publish a final rule amending its regulations on the 9-11 Response and Biometric Entry-Exit Fee for certain H-1B and L-1 nonimmigrant visas. The final rule changes DHS’s interpretation of statutory language to require that covered employers submit the 9-11 Biometric Fee ($4,000 for H-1B petitions and $4,500 for L-1 petitions) for all H-1B and L-1 extension-of-status petitions regardless of whether the related fraud prevention and detection fee applies. The changes also “help DHS comply with its congressional mandate to implement a biometric entry-exit system,” the agency said.
DHS said the fee requirement includes extension-of-status petitions that do not involve a change of employer. The 9-11 Biometric Fee also continues to apply unchanged to petitions seeking an initial grant of status. The fee therefore applies “to all H-1B or L-1 petitions filed by covered employers seeking initial classification of a beneficiary as an H-1B or L-1 nonimmigrant or an extension of status for those already in such status, irrespective of whether the extension of status request is for a change of covered employers or for the purpose of remaining employed with the original covered employer.”
President Trump Signs New Executive Orders Limiting Birthright Citizenship
Following defeat in the Supreme Court on constitutional grounds of a presidential order limiting birthright citizenship, President Trump signed two new executive orders on August 6, 2026, to limit birthright citizenship for those he deems not to “fall within the rule of birthright citizenship announced by the Supreme Court”:
- Continuing to Protect the Meaning and Value of American Citizenship, which “identifies, non-exhaustively, and prescribes action concerning certain categories of children of aliens who do not fall within the rule of birthright citizenship as announced by the Supreme Court”; and
- Ending Birth Tourism, which aims to “prevent the entry into the United States of, or the granting of any visa or other travel authorization to, any alien entering or attempting to enter the United States for the purpose of engaging in birth tourism; revoking the visa or travel authorization and permanently barring entry of any alien who enters or attempts to enter the United States for the purpose of engaging in birth tourism; denial of entry to, or removal of, any alien who previously engaged or plans to engage in birth tourism; or other appropriate action against entities, organizations, or individuals, within or outside of the United States, responsible for facilitating or enabling birth tourism in any manner.”
The first order identifies several categories of persons it asserts are not covered by birthright citizenship, including those with a parent who is an “alien enemy,” such as a member of a designated Foreign Terrorist Organization or a Specially Designated Global Terrorist; those with a parent who is a foreign government employee, including ambassadors, certain embassy or consular employees, officials of foreign governments, or employees of international organizations with immunity; those whose parent engaged in a commercial transaction or fraudulent activity to obtain or access birthright citizenship, including arrangements to ensure that the mother or a surrogate is present in the United States or a U.S. territory to give birth; and those born in a U.S. territory or territorial waters where citizenship is not conferred by federal statute.
In the second order, “birth tourism” is defined as “(a) the entry of any foreign national into the United States via a nonimmigrant visa for the purpose of giving birth on American soil; or (b) any effort by any foreign national to facilitate the entry of any foreign national into the United States via a nonimmigrant visa for the purpose of giving birth on American soil.” The order on birth tourism states that U.S. immigration laws “establish discrete categories of temporary nonimmigrant visas to allow foreign visitors into the United States for study, exchange, temporary employment, tourism, and other transitory activities that are now exploited by birth tourism operators. Participants in birth tourism schemes abuse these categories to establish a permanent foothold in the United States by securing the advantage of citizenship for their children and then potentially for themselves.”
Some commentators believe that even these executive orders will be found unconstitutional.
Trump Administration Considers $100,000 Fee for International Students to Work in United States
According to reports, the Trump administration is considering charging a $100,000 fee for international students who want to work in the United States after graduation, likely via the Optional Training Program (OPT). As of last fall, there were an estimated 300,000 international students on OPT in the United States, about a quarter of the total international student population.
If implemented, the fee could reduce the ability of the United States to attract and retain top talent. It also could harm universities, tech companies, and Wall Street firms that benefit from the international student pipeline.
The Department of Homeland Security is reportedly considering the fee as part of a larger package of changes to OPT regulations.
This is posting is for informational purposes and is not intended as legal advice. If you require further assistance or advice relating to the above, please contact our Partner, Catherine Betancourt at catherine@flynnhodkinson.com.
Catherine Betancourt is a Partner at Flynn Hodkinson, a specialist US immigration law firm in London, where she advises individual and corporate clients on moving to and working in the United States.
Her primary focus is consular processing of immigrant and nonimmigrant visas at US Embassies and Consulates worldwide, with particular expertise in the employment-based and treaty-based routes, including the E-1 Treaty Trader and E-2 Treaty Investor visas, most relevant to UK and Irish businesses relocating people to the US.
1. Is the proposed $103,265 H-1B fee already in effect?
No. The Department of Homeland Security announced a proposed rule on August 24, 2026. If finalized as proposed, the additional $103,265 fee would apply to H-1B cap-subject petitions, including petitions eligible for the advanced-degree exemption, and would be charged in addition to other applicable fees. Comments on the proposal are due by September 24, 2026.
2. Would the proposed $103,265 H-1B fee apply to all H-1B petitions?
No. As currently proposed, the additional fee would apply to cap-subject H-1B petitions. It would not apply to H-1B petitions that are exempt from the annual cap, including certain petitions involving institutions of higher education, nonprofit research organizations, and governmental research organizations.
3. Has the 60-day grace period for terminated nonimmigrant workers been eliminated?
No. DHS is considering a rule that would eliminate the 60-day grace period, but the proposed rule has not yet been published. The current grace period may apply to workers in H-1B, H-1B1, L-1, O-1, TN, E-1, E-2, and E-3 status, as well as their dependants, following termination of employment.
4. Can H-4 spouses still apply for employment authorization?
For now, eligible H-4 spouses can still seek employment authorization under the existing rules. The administration has indicated that it plans to propose a rule eliminating employment authorization eligibility for H-4 spouses, but there is currently no target date for publication of the proposed rule.
5. Is USCIS now requiring all immigration applications to be filed electronically?
No. The interim final rule that took effect on August 11, 2026 gives USCIS a framework for requiring electronic filing of certain benefit requests. It does not mean that every immigration filing must immediately be submitted electronically. The rule also provides for waivers in circumstances where an individual is unable to file electronically.
6. Can USCIS deny an immigration application without first issuing a Request for Evidence?
Yes. USCIS clarified in August 2026 that a benefit request may be denied without first issuing a Request for Evidence (RFE) or Notice of Intent to Deny when the applicant or petitioner fails to submit all required initial evidence. This makes it particularly important to identify and submit the required supporting evidence with the initial filing.
7. Who may have to pay the $4,000 or $4,500 9-11 Biometric Fee?
Under DHS’s final rule, covered employers may be required to pay the $4,000 fee for certain H-1B petitions or $4,500 fee for certain L-1 petitions, including qualifying extension-of-status petitions. The rule changes DHS’s interpretation so that the fee may apply even when the extension does not involve a change of employer.
8. Could a B-1/B-2 visa applicant be required to post a visa bond?
Yes. Under the Department of State’s permanent Visa Bond Program, certain B-1/B-2 applicants may be required to post a bond of up to $20,000 as a condition of visa issuance. The requirement is aimed at nationals of designated countries, and the Department of State may change the list of covered countries over time.
9. Is the proposed $100,000 OPT fee for international students already in effect?
No. According to reports discussed in the article, the administration is considering a $100,000 fee for international students who want to work in the United States after graduation, likely through Optional Practical Training (OPT). No such fee has yet been implemented.
10. What should employers and visa applicants take away from the August 2026 U.S. immigration updates?
Many of the August announcements are proposals rather than final rules, so it is important to distinguish between changes that are already effective and measures that are still under consideration. Employers, investors, workers, and families planning U.S. immigration matters should check the current rules before making decisions based on a proposed policy change.
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