Understanding Recent H-1B Visa Program Changes

Recent actions by the U.S. government have introduced significant shifts for the H-1B visa program, impacting both employers and foreign workers. These changes, enacted in September 2026, focus on program integrity and employer accountability. Key among these are an extended fee for certain H-1B filings and a proposed alteration to the grace period for visa holders. Understanding these updates is crucial for anyone involved with the H-1B visa process.

Proposed End to the 60-Day Grace Period

The Department of Homeland Security (DHS) has proposed ending the 60-day grace period for several employment-based visa categories. This includes the H-1B, H-1B1, E-3, L-1, O-1, and TN visas, as well as their dependent visas. Currently, this grace period allows workers a window of time to find a new employer, change their visa status, or depart the United States after their qualifying employment ends.

If this proposal moves forward after a public comment period, workers in these categories would have significantly less time to adjust their status or make arrangements to leave the country. The DHS stated the aim is to ensure a clearer connection between a nonimmigrant’s status and their specific employment. This change would mean that upon losing a job, individuals would generally need to leave the U.S. unless they already have another legal basis to remain. The current rules, however, remain in effect while the proposal is under review.

Increased Scrutiny on Employers with Layoffs

In addition to the grace period proposal, executive actions taken on September 18, 2026, direct government agencies to increase scrutiny of H-1B filings from employers who have recently laid off or plan to lay off U.S. workers in similar positions. This directive involves the Secretaries of State, Labor, and Homeland Security, who are to consult with other departments and the Small Business Administration.

This means that labor condition applications, H-1B petitions, visa decisions, and even entry screenings will now consider an employer’s layoff history. The administration has framed this as a move to strengthen program integrity and improve coordination between agencies. This measure is separate from the proposed changes to the grace period and affects how employers’ hiring practices are reviewed throughout the H-1B process.

Extension of the $100,000 H-1B Fee

A separate action extended a $100,000 fee requirement for certain H-1B filings. This fee, which was set to expire on September 21, 2026, has been renewed through September 21, 2027. This extension applies to specific types of H-1B filings and does not alter the existing rules regarding the grace period.

The renewal of this fee is part of the administration’s efforts to enhance program integrity. It targets certain filings and continues a policy that was previously in place. The extension ensures that this specific financial requirement remains applicable for another year, impacting the costs associated with certain H-1B applications.

Maintaining Lawful Status and Portability

The concept of H-1B portability allows many workers to begin employment with a new company once that company files a new petition on their behalf. However, this portability is contingent on the worker maintaining their lawful immigration status. The proposed changes to the grace period directly affect this.

Under the current system, the grace period can provide a vital bridge for workers to secure new employment after a job loss. If the DHS proposal is finalized, this period would be removed for the affected visa categories, potentially making it more difficult for workers to transition to new employers without a lapse in status. The ongoing public comment period and subsequent rulemaking will determine the final outcome of this proposed change.

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