DHS Proposes New $103,265 Fee on Cap-Subject H-1B Petitions
As we covered 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 Proposal to Eliminate 60-Day Nonimmigrant Grace Period Clears Federal Review
The Office of Management and Budget has cleared a Department of Homeland Security proposed rule that would eliminate the discretionary, maximum 60-day grace period provided to certain nonimmigrants whose employment ceases. The next step for the proposal is publication in the Federal Register with a public comment period. The specific content of the rule will not be known until publication. The regulation will not take effect until public comments are considered and the rule is finalized, which typically takes several months.
If the discretionary 60-day grace period is eliminated, foreign nationals whose employment ceases prematurely (and their dependents) would no longer be maintaining status and would generally be required to depart the United States immediately, unless U.S. Citizenship and Immigration Services exercises its separate discretion to forgive the lapse in status and allow the foreign national to change status or change employers within the country. You can read our client alert here for additional information.
DOS Issues Guidance on Fixed Period of Admission for Sponsors of J Nonimmigrant Exchange Visitors
On August 10, 2026, pursuant to a final rule establishing a fixed period of admission for exchange visitors (J-1 nonimmigrants), international students (F-1 nonimmigrants), and others, the Department of State (DOS) issued guidance for J exchange visitor sponsors with respect to completion of Form DS-2019 and maintaining accurate Student and Exchange Visitor Information System records.
Among other things, Guidance Directive: 2026-01, Final Rule Establishing a Fixed Time Period of Admission for Exchange Visitors (J Nonimmigrants) states:
Effective September 15, 2026, all new and continuing exchange visitors who enter the United States or change to J status on or after that date will receive an Admit Until Date (AUD). The AUD marks the last day the exchange visitor is authorized to remain in the United States in J status; this period cannot exceed four years. Exchange visitors who need additional time beyond their AUD to complete program objectives must apply to [U.S. Citizenship and Immigration Services] for an extension of stay via the Form I-539 Application to Extend/Change Nonimmigrant Status or depart the United States and apply for admission at a U.S. port of entry with a valid Form DS-2019 and U.S. visa.
The guidance states that it must be followed for new exchange visitors and for those continuing their program on or after the effective date (September 15, 2026). For exchange visitors on a program authorized before September 15, 2026, the guidance advises sponsors to review the Program End Date in SEVIS to confirm that it reflects the date the exchange visitor is expected to complete the program. If the Program End Date does not reflect that date, sponsors must add an Expected Completion Date in Field 4, following the requirements set forth in the guidance.
We will be covering this significant change on our upcoming webinar on Wednesday, September 9. Click here to register.
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, including the previously mentioned proposed 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.
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 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.
Overruling Precedent, BIA Now Says Leaving United States Temporarily Under Advance Parole Constitutes ‘Departure’
Overruling Matter of Arrabally and Yerrabelly, a 2012 precedent decision holding that a person who leaves the United States temporarily with a grant of advance parole does not thereby make a “departure” under the Immigration and Nationality Act and thus does not trigger the 3- or 10-year bars to reentry into the United States, the Board of Immigration Appeals ruled on August 13, 2026, in Matter of Delcarmen-Lara that the term “departure” under the INA does not include an exception for such persons.
Jeff Joseph, President of the American Immigration Lawyers Association, commented, “This ruling flip-flops on 14 years of well-settled law and policy. This decision punishes people for following the rules and jeopardizes people who have well-established lives in the U.S., including Dreamers protected by the Deferred Action for Childhood Arrivals (DACA) program, people with Temporary Protected Status (TPS), and the immediate family of U.S. citizens with pending applications for their green cards. The new decision puts people at risk of being barred from the United States and separated from family for years if they leave and then try to re-enter—even if they have paid for and been granted permission to travel. … With Arrabally now gone, those affected will not be able to leave the country to see their families, attend funerals, or for education or employment purposes.” Please read our client alert on this topic here.
E-Verify Status Change Report Expands
On August 11, 2026, E-Verify announced that the E-Verify Status Change Report has expanded in scope. Previously, the report only identified parolee (category C11) Employment Authorization Documents (EADs) that were invalidated. It now identifies employees with asylum or Temporary Protected Status (TPS)-related EADs that have been invalidated.
In addition to the C11 category, the expanded report now includes the C08 (asylum applicant with a pending asylum application), C09 (adjustment of status applicant under INA Section 245), A12 (granted Temporary Protected Status [TPS]), and C19 (TPS applicant) categories. The new report also identifies EADs based on a pending Adjustment of Status (AOS) application that have been invalidated.
Klasko attorneys recommend that before taking any HR action, employers should:
- Review the employee’s Form I-9 and identify the document(s) used to establish work authorization. If the employee relied on a document other than a flagged EAD, or holds a separate basis for authorization, the employee’s appearance on the report might not mean they are not work-authorized.
- For A12 and C19 TPS EADs, confirm the current status of the relevant country’s termination before treating the document as invalid. Some countries’ TPS designations remain subject to litigation, and an invalidation flag may not resolve those questions on its own.
- If reverification is warranted, use Form I-9, Supplement B, and give the employee a programmatically consistent opportunity to present alternative evidence of continuing work authorization.
For employers reverifying an employee’s work authorization on the Form I-9, E-Verify provided the following guidance:
- E‑Verify employers with an employee whose EAD is included in the Status Change Report must reverify that employee’s Form I‑9 using Supplement B.
- The employee must provide unexpired documentation from List A or List C on the Lists of Acceptable Documents. Do not reverify identity documents (List B). During this process, you must allow employees to choose which acceptable documentation to present for reverification.
- Do not create a new E‑Verify case.
E-Verify also recently updated its related guidance for employers on invalidated EADs.
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.”
China: New Exit and Entry Regulations Effective September 15
China has issued new regulations on exit and entry administration, signed by Premier Li Qiang and taking effect on September 15, 2026. The rules are intended to standardize procedures, protect travelers’ lawful rights, and safeguard national security and development interests. They also tighten exit security risk prevention by requiring relevant government departments to issue public safety alerts for high-risk travel destinations, and for immigration authorities to remind Chinese citizens to exercise caution when processing exit-entry applications or during border inspections. Additionally, the regulations outline application requirements and refine restrictive measures governing exit and entry, and introduce new oversight of intermediary service providers.
South Africa: Electronic Travel Authorization Officially Launched
South Africa officially launched its Electronic Travel Authorization (ETA) system on August 12, 2026, in a ceremony at OR Tambo International Airport led by President Cyril Ramaphosa. The launch follows a successful pilot phase and positions the ETA as the cornerstone of the Department of Home Affairs’ broader digital immigration transformation program. Separately, the department has proposed a R500 electronic processing fee for ETA applications, which would end the fee waiver in place during the pilot; the proposal was published for public comment through August 11, 2026, and has not yet been confirmed as final.
United Kingdom: Global Talent Visa Opens to Commercial Businesses
The United Kingdom expanded its Global Talent Visa on August 6, 2026, allowing more than 100 commercial research-intensive businesses to recruit and host elite international researchers through the UK Research and Innovation (UKRI) Endorsed Funder pathway. The endorsed funder route was previously restricted to universities and public research institutes, but now includes over 100 private and commercial research organizations for the first time. Approved employers span major multinationals and innovative firms such as AstraZeneca, Jaguar Land Rover, GSK, Riverlane, and Notpla, in fields that align with the UK’s Modern Industrial Strategy, including artificial intelligence, life sciences, clean energy, advanced manufacturing, and quantum technologies. Eligible applicants benefit from the faster, streamlined application processing under the UKRI Endorsed Funder route.
Canada: Ontario Workforce Priority Stream Requires Local Presence
Under Ontario’s redesignedOntario Workforce Priority stream, employers nominating a foreign worker for permanent residence must maintain a business location in Ontario where the nominated employee works or regularly reports. The position also must be essential to the business’s operations. Hybrid arrangements remain acceptable, provided the employee regularly works from a permanent Ontario workplace, such as an office or dedicated workspace, when not working from home. The requirement is part of the OINP’s redesign, which replaced its eight former nomination streams with the single Ontario Workforce Priority stream in June 2026.
Mexico/Peru: Diplomatic Relations Restored After 2025 Suspension
On August 7, 2026, Mexico and Peru announced the resumption of full diplomatic relations through a joint communiqué issued by Mexico’s Secretaría de Relaciones Exteriores (SRE) and Peru’s Ministry of Foreign Affairs. The governments cited historic bonds of friendship and cooperation between the two countries and reaffirmed their commitment to international law. As part of the agreement, Peru granted safe conduct allowing former Peruvian Prime Minister Betssy Chávez to leave the Mexican embassy in Lima. With relations restored, diplomatic missions in both countries are expected to resume full operations.
The rupture originated on November 3, 2025, when Peru severed diplomatic relations with Mexico after Mexico granted Chávez political asylum at its embassy in Lima. Peru’s then Foreign Minister, Hugo de Zela, stated at the time that consular relations between the two countries would continue uninterrupted.
Klasko News
FIRM NEWS
Klasko Webinar: Duration of Status Eliminated: Navigating the New Fixed Admission Period
On September 9, join Klasko Immigration Law Partners for a comprehensive briefing on DHS’s final rule to eliminate D/S for F, J, and I nonimmigrants, what this rule means, and how to prepare. Register here!
IN THE NEWS
William Stock
William Stock was recently quoted in The Dispatch on the administration’s proposed $103,265 H-1B fee, calling the legal rationale “tenuous.”
Timothy D’Arduini
Timothy D’Arduini was recently quoted in Bloomberg Law on the DOJ’s growing enforcement focus on PERM recruitment practices.
Klasko Immigration Law Partners
Klasko Immigration Law Partners was recently mentioned in Business Standard on the proposed elimination of the 60-day grace period for H-1B and other sponsored workers.
RECENT SPEAKING ENGAGEMENTS
Timothy D’Arduini | Natalia Gouz | Nick Lowrey
On August 5, Tim, Natalia, and Nick hosted a Klasko Immigration Law Partners webinar on I-9 compliance and worksite enforcement entitled Paperwork to Protection: Is Your Compliance Program Ready?
Nick Lowrey
On August 16, Nick presented in a webinar hosted by LawPractice CLE titled I-9 Penalty Reclassification and ICE Worksite Enforcement: Defending Employers After the Virtue Memorandum’s Repeal.
Nigel James
On August 19, Nigel spoke at this myLawCLE webinar on USCIS’s recently updated discretionary policy for employment-based green card adjustment of status filings.
Elise Fialkowski | Ian Wilson
On August 26, Elise and Ian presented to Drexel University on Duration of Status Is Ending: What F-1 Students, J-1 Students, and J-1 Scholars Need to Know.
Timothy D’Arduini | Natalia Gouz | Nick Lowrey
On August 26, Tim, Natalia, and Nick spoke in this LawPracticeCLE webinar titled Behind the Curtain: Structuring Privileged Form I-9 Internal Audits and Leveraging Technology to Reduce Employer Risk.
Michele Madera | Allie Dempsey | Nigel James
On September 3, Michele, Allie, and Nigel presented to Stevens University on the Duration of Status for students.
Jessica DeNisi
On September 3, Jessica DeNisi spoke in an EB5 Investors Webinar titled EB-5 Deadline: What Investors Should Know.
UPCOMING SPEAKING ENGAGEMENTS
Klasko Immigration Law Partners
On September 9, 2026, ten Klasko attorneys will be presenting on the latest information and guidance on the elimination of duration of status for F, J, and I visas. To learn more and register, click here.
RANKINGS/AWARDS
Klasko Immigration Law Partners continues to expand its bench of nationally recognized talent, with eleven attorneys named to the 2027 edition of The Best Lawyers in America® and Best Lawyers: Ones to Watch® in America.
The Best Lawyers in America®
- Ron Klasko
- Bill Stock
- Elise Fialkowski
- Michele Madera
- Jessica DeNisi
- Natalia Gouz
- Allie Dempsey
- Romina Gomez
Best Lawyers: Ones to Watch® in America
- Alison Li
- Nick Lowrey
- Wei Zhong
ICYMI: RECENT BLOG POSTS AND ALERTS
DHS Proposes New $103,265 H-1B Fee for Cap-Subject Petitions
Natalia Gouz breaks down what the proposed rule would mean for employers and sponsored workers and how it differs from the proclamation-based fee. Read the alert here.
TPS Holders Face a Narrowing Path Forward
Grace Waweru examines what TPS is, who is affected, and the proactive steps TPS holders and their employers should take now. Read the article here.
Travel on Advance Parole May Now Trigger Immigration Bars
Megan Kludt identifies who is most at risk and the steps individuals and employers should take before any international travel. Read the alert here.
60-Day Grace Period Elimination: What Employers Should Know
Megan Kludt explains what the proposed rule would mean for H-1B, L-1, O-1, and other sponsored workers, the serious immigration consequences of falling out of status, and the steps employers should consider now in anticipation of the change. Read the alert here.
New Executive Orders on Citizenship and Birth Tourism: What Travelers and Employers Need to Know
Ilana Snyder addresses what both orders mean for travelers, sponsored employees, and their families, and the immediate steps employers should take while legal challenges and agency guidance are still pending. Read the alert here.
E-Verify Status Change Report: Now Covers TPS, Asylum, and AOS EADs
Taylor Gibson outlines what the update means for employers and the steps organizations must take before acting on a flag. Read the alert here.
Appeals Court Keeps $100,000 H-1B Fee Blocked
Ryan Patterson outlines what this means for employers, international travel decisions, and refund exposure. Read the alert here.
DOJ Is Not Slowing Down on PERM Recruitment Discrimination Investigations and What Employers Should Consider Doing Now
Timothy D’Arduini examines the connecting thread across the Facebook, Apple, Cloudera, and OpenAI/Statsig cases, and the concrete steps employers should take now to audit and align their PERM recruitment practices before an investigation begins. Read the alert here.
Becoming a US Citizen (Part 2): Pitfalls and Accommodations
In the second episode of our two-part naturalization series, Karuna Simbeck, Megan Kludt, and Stacy Shore build on the first episode’s overview of naturalization eligibility. Read the blog here.
FIRM FEATURE
Win of the Month! As summer travel winds down, this case is a reminder that immigration strategy often keeps hospitality running behind the scenes. A luxury travel company acquired a new excursions business run by a manager with real authority but no conventional paper trail. Klasko’s Megan Kludt built the USCIS record connecting his authority to his role. Result: an approved L-1A, proving unconventional industries can meet the standard. Read the full Instagram post here!
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This newsletter was prepared with the assistance of ABIL, the Alliance of Business Immigration Lawyers, of which Klasko Immigration Law Partners is an active member.
