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• DHS Advances New H-1B Reform Proposal
• DHS Proposes $103,265 Fee for H-1B Cap Petitions
• State Department Temporarily Pauses Immigrant Visa Interviews
• Federal Court Vacates 75 Country Immigrant Visa Suspension 
• USCIS Expands Public Charge Review for Green Card Applicants

DHS Advances New H-1B Reform Proposal

The Department of Homeland Security is moving forward with another significant overhaul of the H-1B program. On August 24, 2026, DHS submitted its proposed rule, “Reforming the H-1B Nonimmigrant Visa Classification Program,” to the Office of Management and Budget for federal review. The proposal is classified as economically significant and remains confidential while OMB review is pending. 

No H-1B requirements have changed yet. However, DHS’s regulatory agenda identifies three major areas targeted by the forthcoming proposal: 

• Revising eligibility for exemptions from the annual H-1B cap 
• Increasing scrutiny of employers with prior H-1B program violations 
• Expanding oversight of H-1B workers placed at third party worksites 

The potential cap exemption changes could be particularly important for universities, affiliated nonprofits, research organizations, teaching hospitals, and other employers that rely on cap exempt H-1B sponsorship. DHS has not yet disclosed which eligibility standards it plans to change. 

Third party placements are another key area to watch. Current regulations already permit USCIS to request contracts and supporting evidence, conduct site visits at third party locations, and examine whether a bona fide specialty occupation position exists. The new proposal could introduce additional requirements, but the details will remain unknown until the proposed rule is published. 

After OMB review, DHS is expected to publish the proposal in the Federal Register and provide an opportunity for public comment before any substantive changes can become final. 

Impact: The proposal signals continued federal scrutiny of the H-1B program, particularly around cap exemptions, employer compliance, and third party placements. Employers should review current sponsorship practices now, but avoid assuming specific requirements will change until DHS releases the proposed rule.

DHS Proposes $103,265 Fee for H-1B Cap Petitions

The Department of Homeland Security has proposed a dramatic new fee for employers sponsoring workers through the annual H-1B cap. Under the proposed rule, employers would pay an additional $103,265 for each cap subject H-1B petition, on top of existing filing fees.

The proposal would apply to petitions filed under both the regular 65,000 visa cap and the 20,000 U.S. advanced degree exemption. DHS estimates approximately 85,000 petitions would be subject to the fee annually, generating roughly $8.8 billion to help fund immigration administration across DHS and other federal agencies.

Importantly, the proposed fee would not apply to cap exempt H-1B petitions. This would generally preserve an exemption for qualifying universities, affiliated nonprofit organizations, nonprofit research organizations, and governmental research organizations.

The proposal is not currently in effect. DHS must complete the federal rulemaking process before employers could be required to pay the fee. Following publication in the Federal Register, stakeholders will have 30 days to submit public comments, which DHS must consider before issuing any final rule.

If finalized, the fee could substantially alter the economics of H-1B sponsorship, particularly for startups, smaller employers, and organizations hiring multiple cap subject workers.

Impact: The proposed six figure fee could significantly increase the cost of recruiting international talent through the H-1B cap and may force employers to reconsider sponsorship strategies. For now, employers should monitor the rulemaking process and evaluate potential budget and workforce implications without assuming the fee will ultimately take effect as proposed. 

State Department Temporarily Pauses Immigrant Visa Interviews

The U.S. Department of State has temporarily paused immigrant visa interviews at U.S. embassies and consulates worldwide while consular officers receive updated training on public charge guidance. Applicants with scheduled interviews have begun receiving notices that their appointments are being cancelled and will be rescheduled. 

The State Department has not announced how long the pause will remain in effect or when postponed interviews will resume. Current information also does not indicate that the pause applies to nonimmigrant visa categories. 

The development comes as the State Department places increased emphasis on public charge determinations in immigrant visa adjudications. Current Department guidance requires immigrant visa applicants to demonstrate that they are not likely to become a public charge, and the agency recently implemented procedures allowing consular officers to require certain applicants to obtain public charge bonds. 

While interviews are paused, applicants should continue completing pre interview requirements and responding to National Visa Center requests unless specifically instructed otherwise. The Department has not indicated whether the pause affects applicants who already completed interviews but are awaiting visa issuance. 

Even a brief interruption could create longer term scheduling delays as consular posts work to accommodate cancelled appointments alongside previously scheduled cases. 

Impact: The temporary pause could delay immigrant visa issuance and planned entry to the United States as a lawful permanent resident. Employers and applicants with upcoming interviews should monitor communications from the relevant consular post and prepare for possible changes to relocation, onboarding, and travel timelines.

Federal Court Vacates 75 Country Immigrant Visa Suspension

A federal judge in New York has vacated the State Department’s policy suspending immigrant visa issuance for nationals of 75 countries, clearing the way for affected applicants to once again receive individualized visa adjudications. 

The State Department implemented the suspension in January 2026 while reassessing public charge policies, broadly pausing immigrant visa issuance based on an applicant’s nationality. Official State Department materials confirmed that the suspension took effect January 21 and covered immigrant visa applicants from 75 countries. 

In Catholic Legal Immigration Network v. Rubio, Judge Jeannette A. Vargas found that the policy exceeded the Secretary of State’s authority and violated federal immigration law, including the Immigration and Nationality Act’s prohibition on nationality based discrimination in immigrant visa issuance. The court also found the policy unlawful under the Administrative Procedure Act. 

Importantly, the court also set aside immigrant visa refusals issued solely because of the 75 country suspension. This relief does not apply where a consular officer identified separate grounds of visa ineligibility. 

Unless the decision is stayed or reversed on appeal, U.S. consular posts should resume adjudicating affected immigrant visa applications and reconsider cases refused solely under the challenged policy. The government may still appeal, meaning further changes remain possible. 

Impact: The decision removes a significant barrier for employment based and family based immigrant visa applicants from the affected countries. Applicants whose cases were refused solely under the suspension should monitor their consular post for next steps, while employers should prepare for processing to resume but remain alert for a possible government appeal.

USCIS Expands Public Charge Review for Green Card Applicants

U.S. Citizenship and Immigration Services has issued new guidance significantly expanding how officers will evaluate public charge inadmissibility for certain adjustment of status applicants. The policy takes effect September 18, 2026 and applies to covered Form I-485 applications filed on or after that date. 

Under the new framework, USCIS will move away from the more defined standards established under the 2022 public charge rule and instead conduct a broader, individualized review of whether an applicant is likely to become dependent on government assistance for basic needs. 

Officers may consider factors including age, health, family circumstances, assets and financial resources, education, employment history and prospects, and certain means tested public benefits. Benefits such as Medicaid, SNAP, WIC, CHIP, and public housing may become relevant when received on or after September 18, although receiving a benefit alone does not automatically make someone inadmissible. 

The changes may also affect employment based adjustment applicants, whose salary, employment stability, education, insurance coverage, assets, and financial circumstances may receive greater attention. Family based applicants could face increased scrutiny of Form I-864 sponsors, including their actual financial capacity to provide support. 

Importantly, Form I-485 applications filed before September 18 remain governed by the prior framework, making filing timing particularly important for eligible applicants. 

Impact: The new framework introduces significantly more discretion into public charge adjudications and may increase financial documentation requests and RFEs. Employers and eligible applicants should review upcoming I 485 filings carefully, particularly where filing before September 18 may be possible.