H-1B Visa Updates August 2026: Key Changes Employers Must Know

Employers sponsoring foreign employees through the H-1B program must monitor three significant developments in August 2026. The developments concern the possible elimination of the H-1B post-employment grace period, a new $4,000 extension fee for certain large employers, and the continuing court-ordered block on the proposed $100,000 H-1B fee.

These developments do not have the same legal status. One remains under White House review. One is a final rule scheduled to take effect in September 2026. The third remains blocked by court order while litigation continues.

Employers should distinguish between proposed rules, effective rules, and court-blocked requirements before making hiring, termination, or petition-filing decisions.

H-1B Visa 2026: Status of the Three Major Developments

As of August 2026, the current status is as follows:

1. The 60-day grace period remains in effect. DHS has submitted a proposed rule that would eliminate it, but the proposal is still under White House review.
2. The $4,000 H-1B extension fee will apply beginning in September 2026 to qualifying employers under the final rule.
3. The $100,000 H-1B fee remains blocked. USCIS is not collecting the fee while the court order remains in effect.

Employers should maintain a regulatory tracking process and coordinate with an immigration lawyer before relying on any developing rule.

1. DHS Proposes Eliminating the 60-Day H-1B Grace Period

DHS has submitted a proposed regulation titled “Eliminating the Discretionary 60-day Grace Period.” The proposal is identified by Regulation Identifier Number RIN 1615-AD22.

The proposal is currently under review by the Office of Management and Budget. It has not yet been published as a Notice of Proposed Rulemaking in the Federal Register. It has not taken effect.

Current law remains unchanged

Under the existing regulation, an H-1B worker whose employment ends may generally remain in the United States for the shorter of:

• Sixty consecutive days; or
• The remaining validity period of the worker’s Form I-94.

The grace period may allow the worker to:

• Find a new employer;
• File an H-1B change-of-employer petition;
• File a change-of-status application;
• Prepare an orderly departure from the United States.

The grace period generally applies whether the employment ends voluntarily or involuntarily. It may be available once during each authorized petition validity period.

The current rule also applies to certain other nonimmigrant categories, including L-1, O-1, TN, E-1, E-2, and E-3 classifications, as well as eligible dependents.

What the proposal could change

If finalized in its current described form, the regulation would eliminate the discretionary 60-day protection following the end of employment. A worker could lose the ability to maintain status during that period and could face an immediate need to depart the United States.

The proposal could also affect the ability to:

• Change employers from within the United States;
• File a change-of-status application after termination;
• Prepare a transfer petition without a status lapse;
• Coordinate dependent immigration status after the principal worker’s employment ends.

The exact scope, transition provisions, exceptions, and effective date are not yet known. Those details will not be available until DHS publishes the proposed rule.

Required regulatory steps

The proposal must proceed through additional steps before it can become binding:

1. Completion of White House review.
2. Publication in the Federal Register.
3. A public comment period, expected to last approximately 30 to 60 days.
4. DHS review of public comments.
5. Publication of a final rule.
6. Compliance with the final rule’s effective date.

Employers must not treat the proposal as current law. However, HR departments should evaluate how a shorter response period would affect termination procedures, relocation planning, and the timing of H-1B transfers.

A termination that is not promptly coordinated with immigration counsel could result in a worker’s loss of status or inability to complete a timely change of employer if the rule becomes effective.

2. September 2026 Expansion of the $4,000 H-1B Extension Fee

A final DHS rule will expand the existing 9/11 Response and Biometric Entry-Exit fee to certain H-1B and L-1 extension petitions. The rule is scheduled for publication on August 10, 2026, and will take effect 30 days later.

The fee is commonly described as a biometric fee. Its legal designation is the 9/11 Response and Biometric Entry-Exit fee. It is separate from ordinary USCIS filing fees and any applicable premium processing fee.

Which employers are covered?

The expanded fee applies to petitioning employers that meet both requirements:

• The employer has 50 or more employees in the United States; and
• More than 50 percent of the employer’s U.S. workforce holds H-1B or L-1 nonimmigrant status.

Both conditions must be satisfied. An employer that does not meet the 50-employee threshold or the 50-percent H-1B/L-1 threshold generally is not subject to the additional extension fee.

How much is the fee?

For covered employers, the additional fee is:

• $4,000 for each H-1B extension-of-stay petition; and
• $4,500 for each L-1 extension-of-stay petition.

The fee is added to the ordinary government filing costs. It does not replace the Form I-129 filing fee, the Asylum Program Fee, the Fraud Prevention and Detection fee where applicable, or premium processing charges.

Which filings are affected?

Beginning on the effective date, the expanded fee will apply to all H-1B and L-1 extension-of-stay petitions filed by covered employers.

The rule continues to apply to covered initial grants and qualifying changes of employer. It also removes the prior dependence on whether the separate Fraud Prevention and Detection fee is required for the petition.

An amended petition that does not request an extension of stay is generally exempt from this expanded extension requirement.

Employers should review petition preparation procedures before the effective date. The review should include:

1. U.S. employee headcount.
2. The number of employees in H-1B and L-1 status.
3. Whether the petition requests an extension of stay.
4. Whether the petition is an amendment, transfer, initial petition, or extension.
5. The correct fee payment and filing instructions.

Failure to include a required fee can lead to rejection or delay. A rejected petition may affect the employer’s ability to preserve work authorization and status-related filing timelines.

Budgeting implications for employers

Covered employers should revise their H-1B visa 2026 budgets before September filings. The additional $4,000 charge may apply repeatedly when a qualifying employer files extension petitions for multiple H-1B workers.

The fee is currently scheduled to sunset on September 30, 2027, unless Congress extends it. Employers should continue monitoring statutory and regulatory developments.

A business immigration attorney can assist with determining whether the 50/50 test applies. The analysis may require current payroll, workforce classification, and immigration-status information.

3. The $100,000 H-1B Fee Remains Blocked

The proposed $100,000 H-1B fee remains unavailable for collection following a court-ordered vacatur.

The fee originated from a September 2025 presidential proclamation concerning certain new H-1B petitions. The fee was not a general charge for routine H-1B extensions. It primarily affected certain new petitions involving beneficiaries outside the United States who required visa issuance or admission processing abroad.

On June 8, 2026, the U.S. District Court for the District of Massachusetts vacated the agency guidance implementing the payment requirement. The government sought a stay while pursuing an appeal. On July 24, 2026, the First Circuit denied the government’s request for a stay.

The district court’s order therefore remains in effect.

Current filing impact

At this time:

• USCIS is not collecting the $100,000 fee.
• Employers generally should file under the applicable standard H-1B fee structure.
• The fee does not apply to ordinary H-1B extensions for workers maintaining valid H-1B status.
• The underlying litigation remains unresolved.

The USCIS H-1B FAQ states that DHS will comply with the court order while considering further action. The agency also states that it intends to collect the payment if the order is later lifted.

The current result is not necessarily permanent. The government may seek further appellate or Supreme Court review. Employers should not treat the court-ordered block as a final determination that the fee can never return.

Employer Action Plan for August and September 2026

Employers should take the following steps:

1. Continue applying the current 60-day grace period. Do not treat the DHS proposal as an effective rule.
2. Track RIN 1615-AD22. Review any Federal Register publication and proposed regulatory text.
3. Audit H-1B and L-1 workforce data. Confirm whether the company meets the 50-employee and 50-percent status thresholds.
4. Update petition budgets. Add the $4,000 fee to qualifying H-1B extensions filed after the September effective date.
5. Review filing classifications. Determine whether each petition requests an extension of stay, a change of employer, an amendment, or an initial grant.
6. Do not include the blocked $100,000 fee unless USCIS issues legally effective contrary instructions.
7. Coordinate terminations with immigration counsel. A delayed response can create significant status and work authorization problems, particularly if the grace-period proposal advances.
8. Review workforce compliance procedures. Petition records, Form I-9 practices, and expiration tracking should remain consistent with current federal requirements. Employers can also review Blasingame Law LLC’s guide to internal I-9 audits.

Obtain Advice from an Immigration Lawyer

H-1B requirements in August 2026 include a combination of current law, an upcoming final rule, and continuing litigation. Employers must not apply a proposed change as though it were already effective. They also must not overlook a final fee rule because the related statutory fee is commonly described inaccurately.

Blasingame Law LLC provides business immigration services for employers hiring, retaining, and transferring foreign employees. The firm assists with H-1B and L-1 petitions, extension strategies, workforce compliance, I-9 audits, and immigration planning for HR departments.

For a case-specific assessment of your company’s filing obligations, workforce structure, or termination procedures, contact a qualified business immigration attorney. Schedule a consultation with Blasingame Law LLC before submitting a petition affected by the September 2026 fee change.