Immigration News Digest – July 2026

Immigration News Digest – July 2026

Immigration News Digest – July 2026

First Circuit Denies Stay in $100,000 H-1B Fee Case

On July 24, 2026, the U.S. Court of Appeals for the First Circuit denied a motion to continue a stay in State of California v. Mullin. In that case, plaintiffs (a group of 20 states[1]) challenged a proclamation by President Trump requiring that $100,000 be paid with each H-1B petition. The plaintiffs argued that the actions taken by several federal agencies to implement the proclamation were illegal and unconstitutional. They also claimed that the policy would harm their states and lead to staffing shortages in public universities, K-12 schools, and healthcare systems.

A district court previously vacated the policy as unlikely to succeed on the merits but granted a temporary administrative stay. The First Circuit agreed with the lower court and noted that the plaintiff states were likely to be substantially injured by the stay. The First Circuit’s order means that the $100,000 H-1B application fee remains vacated pending a decision on the merits in the underlying appeal.

It is widely expected that the Trump administration will petition the Supreme Court if it loses on the merits in the First Circuit. A final First Circuit decision is not expected until some time in 2027.

DOS Announces ‘B’ Visa Expedited Appointment Pilot Program, Starting With Mission Mexico

On July 22, 2026, the Department of State (DOS) announced that it is testing a voluntary, optional nonimmigrant visa expedited appointment program for B visas at select U.S. embassies and consulates through December 31, 2026, starting with Mission Mexico (embassy and all consulates).

Under the pilot program, eligible applicants for B visas—those making new appointments or holding existing appointments with unexpired machine-readable visa (MRV) fee receipts—may pay a $750 fee per appointment to schedule a visa interview within 10 business days (subject to availability). Applicants must first follow the usual process to pay the $185 MRV fee and schedule an interview appointment. If expedited appointments are available, these appointments will be visible for applicants to select when scheduling their appointments, DOS said. After an applicant selects an expedited appointment date and time, the $750 fee payment must be completed within 10 minutes to secure the appointment.

DOS noted that additional pilot locations may be announced throughout the pilot period.

DHS Finalizes Rule Eliminating Duration of Status for F, J, and I Nonimmigrants

On July 16, 2026, the Department of Homeland Security (DHS) released its long-anticipated final rule changing the admission period in the F, J, and I classifications from duration of status (D/S) to admission for a fixed time period tied to the nonimmigrant’s program, along with making additional changes to admission and extension requirements. The rule is effective September 15, 2026, although Congress could act to change or void the rule during the implementation window.

The new rule also introduces new restrictions on academic flexibility. Undergraduate F-1 students would be barred from changing their study program, major, or education level during their first year, except in rare cases. Graduate F-1 students would face even stricter limits, with no ability to change their program or field of study. Moreover, once an international student completes a program at a certain level, they would no longer be permitted to pursue another program at the same or a lower level under F-1 status.

The grace period for F-1 students has been halved from 60 days to 30 days. F-1 students enrolled in English language training programs will have a limited aggregate 24-month period of stay.

The final rule provides for transition measures for students already present in the United States. Those who are currently covered by D/S may continue to benefit from it through their current study program period or up to four additional years. However, if they travel abroad and return within the four years, they will be admitted under the fixed period of the academic program and be subject to the new 30-day grace period.

Under the rule, F, J, and I nonimmigrants will need to track fixed admission periods and timely file extension-of-stay (EOS) applications with U.S. Citizenship and Immigration Services (USCIS) to maintain status. Those who travel internationally and return to the United States will need to carefully monitor their I-94 admission dates, and understand that the I-94 date, not the visa stamp date or any other indicator, controls their authorized stay in the United States.

For employers, universities, teaching hospitals, exchange programs, and media organizations, the rule introduces new compliance considerations and a formal extension process that did not previously exist under D/S. Employers with F, J, and I workers will need to adjust compliance and I-9 reverification procedures to account for fixed admission periods. Practitioners recommend doing this in several ways:

  • Identify the population of employees working pursuant to F, J, or I status and track their status and I-94 expiration.
  • Develop resources regarding employees’ obligation to monitor their I-94 expiration dates, explaining the nuances and common issues that arise with I-94 admission records. This should include noting that:
    • I-94 expiration dates can be truncated, or shortened, to the date of a foreign national’s passport expiration. U.S. Customs and Border Protection does not consider this an error in admission that can be corrected. Foreign nationals must closely monitor their passport expiration dates and renew them as early as possible also.
    • Truncated I-94 expiration dates are one of the easiest ways for a foreign national to fall out of status, lose work without authorization, and accrue unlawful presence in the United States.
  • Determine what level of support the employer will provide, such as covering EOS or Employment Authorization Document filing costs and whether to extend support to dependents.
  • Train I-9 professionals regarding these rule changes and how they will affect the I-9 reverification process and considering supplementing their I-9 support.
  • Educate campus recruiting and talent acquisition teams on the roles of the organization, the employee, and the F/J sponsoring organization in maintaining immigration status and work authorization.

It is critical for individuals in F, J, or I status to understand that the I-94 expiration date controls authorized stay in the United States, even if a visa stamp remains valid for a longer period. Individuals considering program changes, transfers, new educational levels, Curricular Practical Training, Optional Practical Training strategy, extensions, or travel should consult with counsel or their Designated School Official before acting.

USCIS Reaches FY 2027 H-1B Cap

On July 17, 2026, U.S. Citizenship and Immigration Services (USCIS) announced that it has received enough petitions to reach the congressionally mandated 65,000 H-1B visa regular cap and the 20,000 H-1B visa U.S. advanced degree exemption for fiscal year 2027.

USCIS also released data showing the numbers of H-1B workers approved by companies as of March 31, 2026. Below are the top 10 companies hiring H-1B workers:

The top 10 companies hiring H-1B workers

DHS Rescinds Public Charge Regulation

On July 16, 2026, the Department of Homeland Security (DHS) announced that it has issued a final rule rescinding a 2022 regulation regarding public charge determinations. DHS said the rule “ensures that officers can make highly individualized, fact-specific, case-by-case public charge inadmissibility decisions based on the totality” of each person’s individual circumstances. “This approach will prevent the application of overly restrictive criteria that straitjackets DHS officers’ ability to make public charge inadmissibility determinations.”

DHS said that the rule applies to applications for admission made on or after September 18, 2026, or applications for adjustment of status postmarked or electronically submitted on or after that date. Receipt of means-tested public benefits before September 18, 2026, will be considered consistent with the 2022 final rule, DHS said.

The agency plans to publish a revised Form I-485, Application to Register Permanent Residence or Adjust Status. Older versions of Form I-485 postmarked or submitted electronically on or after the effective date will not be accepted, DHS noted.

No Immediate Changes to TN Visa; USMCA Review Process Begins

On July 1, 2026, the Trump administration announced that it will not renew the United States-Mexico-Canada Agreement (USMCA), triggering the agreement’s built-in six-year review process and beginning a potential 10-year path toward expiration.

Although this development has generated significant attention, there is no immediate impact to Trade NAFTA (TN) nonimmigrant status or the ability of Canadian and Mexican professionals to obtain TN classification. U.S. Customs and Border Protection and U.S. Citizenship and Immigration Services continue to adjudicate TN applications under existing eligibility standards. Employers should therefore continue regular workforce planning practices for current and prospective TN employees.

Under the treaty’s “sunset” provisions, the United States, Canada, and Mexico will engage in annual review discussions. If the parties do not agree to extend or replace it, USMCA would expire on July 1, 2036. This review process is separate from the treaty’s withdrawal provision, which would permit a member country to withdraw upon six months’ notice. No such withdrawal has been announced.

[1] The plaintiff states are Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.

 

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.

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.

Book an initial meeting with Catherine Betancourt
Frequently Asked Questions

1. Is the proposed $100,000 H-1B petition fee currently in effect?

No. The First Circuit declined to continue the temporary stay, so the policy requiring a $100,000 payment with each H-1B petition remains vacated while the underlying appeal continues. A final decision from the First Circuit is not expected until 2027.

2. Could the $100,000 H-1B fee still return?

Yes. The litigation is ongoing, and the policy could be reinstated depending on the outcome of the appeal or later Supreme Court proceedings. Employers planning future H-1B filings should continue to monitor the case.

3. What is the new expedited B visa appointment pilot program?

The Department of State is testing an optional program that allows eligible B visa applicants to pay an additional $750 fee for an interview appointment within 10 business days, subject to availability. The program began at the U.S. Embassy and consulates in Mexico and is scheduled to run through December 31, 2026.

4. Does the $750 expedited appointment fee replace the regular B visa application fee?

No. Applicants must first pay the standard $185 machine-readable visa fee and schedule an appointment through the normal process. The additional $750 payment is required only when an eligible applicant selects an available expedited appointment.

5. What is changing for F, J, and I visa holders?

Beginning September 15, 2026, F, J, and I nonimmigrants will generally be admitted for a fixed period rather than for “duration of status.” Their authorized stay will be controlled by the expiration date on the Form I-94, and they may need to file an extension-of-stay application with USCIS to remain in the United States beyond that date.

6. What should students and exchange visitors check after travelling internationally?

They should review their new Form I-94 immediately after returning to the United States. The I-94 expiration date controls how long they may remain, even when the visa stamp in their passport is valid for a longer period.

7. How will the new F, J, and I rule affect employers and universities?

Organizations will need stronger systems for tracking I-94 expiration dates, passport validity, work authorization, extension filings, and Form I-9 reverification. HR, recruiting, immigration, and compliance teams should also understand who is responsible for maintaining each worker’s status.

8. Has USCIS reached the FY 2027 H-1B cap?

Yes. USCIS announced that it received enough petitions to meet both the 65,000 regular H-1B cap and the 20,000 U.S. advanced-degree exemption for fiscal year 2027.

9. What changed in the public charge rules?

DHS rescinded the 2022 public charge regulation and will return to a more individualized assessment based on the totality of each applicant’s circumstances. The new rule applies to certain admission and adjustment-of-status applications filed on or after September 18, 2026.

10. Will applicants need to use a new Form I-485?

Yes. DHS plans to publish a revised Form I-485. Older editions submitted on or after the new rule’s effective date will not be accepted, so applicants should confirm that they are using the correct version before filing.

11. Has the USMCA review changed TN visa eligibility?

No. There is currently no immediate change to TN classification or the existing eligibility standards for Canadian and Mexican professionals. USCIS and U.S. Customs and Border Protection continue to adjudicate TN applications under the current rules.

12. Could the TN visa eventually be affected by the USMCA review?

Potentially, but not in the immediate future. The review process could ultimately lead to the agreement’s expiration on July 1, 2036, if the United States, Canada, and Mexico do not agree to extend or replace it. This is separate from the treaty’s withdrawal procedure, and no withdrawal has been announced.

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