Major fee proposals, court rulings, and cross-border adjustments alter the North American skilled worker and visa landscape.
Introduction to August 2026 Policy Shifts
The immigration landscape across North America is undergoing significant transformation in August 2026. The U.S. Department of Homeland Security is proposing substantial new fees for skilled worker visas while courts challenge existing restrictions, and Canada is extending grace periods for employers navigating temporary work permits. These developments signal a pivotal moment for employers, international workers, and families navigating cross-border mobility.
DHS Proposes $103,265 Fee for H-1B Visa Petitions
On August 25, 2026, the Department of Homeland Security published a proposed rule that would introduce a new $103,265 fee for all H-1B cap-subject petitions, including those filed under the advanced degree exemption. This fee would be added on top of all existing filing fees and would apply to the majority of H-1B applications, though cap-exempt petitions filed by universities and certain nonprofit or governmental research organizations would be excluded.
According to DHS, the fee is intended to help recover the government’s costs of administering the broader immigration system. The proposed rule is not yet final, and the agency is accepting public comments for 30 days following publication. This development comes as the administration continues to scrutinize the H-1B program, which has long been a primary pathway for U.S. employers to hire specialized talent from abroad.
Courts Block $100,000 H-1B Fee While Government Appeals
In a parallel development, the First Circuit Court of Appeals denied the government’s motion to stay a district court ruling that had vacated a $100,000 H-1B fee imposed under Presidential Proclamation 10973. The district court found in June 2026 that the fee exceeded the government’s statutory authority, and the First Circuit’s July 24 decision means the $100,000 fee remains vacated while the government’s appeal proceeds on the merits.
This ruling creates uncertainty for employers and workers, as the administration has indicated it still plans to collect the payment if the order is later lifted. The litigation is ongoing in multiple jurisdictions, and observers expect further court challenges to the new $103,265 proposal as well.
Administration Eyes $100,000 Fee for International Student Work Programs
According to multiple media reports, the administration is considering imposing a $100,000 fee tied to Optional Practical Training (OPT), the program that allows eligible F-1 international students to work in the United States for a period after graduation. The details remain unclear—it is not yet known whether the fee would be imposed on students, universities, or employers—and no proposed rule has been published.
This proposal, if finalized, could significantly impact the ability of U.S. universities and employers to retain international talent and could reshape the pipeline of skilled workers entering the American workforce. The administration has not yet released concrete details, and observers should treat this as a developing policy rather than a final decision.
Public Charge Rule Rescinded and New Guidance Issued
On July 16, 2026, DHS announced a final rule rescinding the 2022 public charge inadmissibility regulations, effective September 18, 2026. The public charge rule determines whether an immigrant is likely to become a burden on public resources and can affect eligibility for permanent residence through family sponsorship or other pathways.
On August 18, 2026, U.S. Citizenship and Immigration Services (USCIS) issued corresponding guidance explaining how officers will evaluate public charge inadmissibility for adjustment of status applicants going forward. For benefits received before September 18, 2026, USCIS will continue to consider only public cash assistance for income maintenance and long-term institutionalization. For benefits received on or after that date, USCIS may consider a broader range of public benefits as part of the totality of the circumstances. Each case will be evaluated on its own facts, with no bright-line test.
Federal Court Strikes Down 75-Country Immigrant Visa Ban
On August 21, 2026, a federal judge in the Southern District of New York vacated a State Department policy that had suspended immigrant visa issuance to nationals of 75 countries since January 2026. The court found that the policy improperly used nationality, rather than individualized review, to deny visas, in violation of the Immigration and Nationality Act’s prohibition on nationality-based discrimination in visa issuance.
The ruling also set aside visa denials that were based solely on the policy. The government may appeal, and consulates have not yet issued guidance on how affected cases will be handled going forward. This decision represents a significant legal setback for the administration’s approach to immigrant visa screening.
State Department Pauses Immigrant Visa Interviews Worldwide
Shortly after the court ruling, the State Department announced a pause on immigrant visa interview appointments at U.S. embassies and consulates worldwide, reportedly to retrain consular officers on public charge procedures. Affected applicants who had immediate and near-future interviews received cancellation notices; cancelled interviews will be rescheduled, though the State Department has not announced when normal scheduling will resume.
This pause applies to immigrant visa interviews only and does not affect nonimmigrant visa categories such as tourist, business, or student visas. The timing of the pause, following the court’s rejection of the 75-country ban, suggests the administration is recalibrating its approach to immigrant visa processing.
DHS Considers Eliminating 60-Day Grace Period for Nonimmigrant Workers
On August 28, 2026, DHS reportedly cleared Office of Management and Budget (OMB) review of a proposed rule that would eliminate the discretionary 60-day grace period currently available to certain nonimmigrant workers, including E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN workers, and their dependents, following termination of sponsored employment. The text of that proposal has not yet been published, and the current 60-day grace period remains fully in effect.
The grace period has long provided workers with a buffer to find new employment or arrange departure from the United States if their sponsorship ends. Eliminating it would require workers to leave the country immediately upon job termination, potentially disrupting career transitions and creating hardship for families.
H-1B Program Overhaul Under Consideration
Separately, DHS is considering proposed changes to the H-1B program itself. The anticipated proposal would address eligibility for cap exemptions, increase scrutiny of employers that have violated program requirements, and strengthen oversight of third-party placements, among other provisions. According to DHS, the changes are intended to improve the integrity of the H-1B program and protect U.S. workers’ wages and working conditions.
These proposals are expected in the near future, and public comment periods will follow publication. Employers and workers should monitor DHS announcements closely, as the changes could reshape how the program operates.
DHS Detentions Increase at Airports
Immigration enforcement agencies are reporting a growing number of foreign nationals detained by ICE at U.S. airports while traveling domestically between states, even where they held a pending application and were otherwise in a period of authorized stay. This does not appear to apply to those in a currently valid immigration status (with a currently valid I-94 record, lawful permanent residents, or U.S. citizens) based on available reports.
Foreign nationals whose underlying nonimmigrant status has expired, even if a later filed application remains pending, should carefully weigh the risks of domestic air travel and should carry all relevant immigration documentation if travel is needed.
State Department Updates Exchange Visitor Program Rules
On July 30, 2026, the State Department published a proposed rule that would revise the conditions under which a sponsor must terminate an exchange visitor’s J-1 program, and the circumstances under which the State Department may terminate a program on its own authority. The proposed rule would also update the extension of program and reinstatement processes to reflect current SEVIS functionality, add definitions for unauthorized employment and valid program status, and eliminate the separate extension of program provision for au pairs.
Public comments on the proposed rule are due by September 28, 2026. The J-1 visa program is used by researchers, scholars, interns, and au pairs, and these changes could affect how sponsors manage program compliance.
September 2026 Visa Bulletin Shows Limited Movement
The Department of State released the September 2026 Visa Bulletin, showing that final action dates for employment-based categories EB-1, EB-2, EB-3, and EB-5 remain unchanged from August for all countries, with the exception of EB-4, which advanced two months to December 15, 2022, for all countries. USCIS has confirmed that employment-based adjustment of status applicants must continue to use the Final Action Dates chart in September.
The Department has cautioned that the EB-2 category for all countries, EB-1 for India, and the EB-5 unreserved category could become unavailable before the fiscal year ends on September 30, 2026, if demand continues to increase. This signals potential backlogs in employment-based immigration pathways.
Canada Extends Work Permit Grace Period to 90 Days
In a contrasting move, Canada has introduced a welcome change for employers and foreign workers navigating the Temporary Foreign Worker Program (TFWP). Effective August 21, 2026, Immigration, Refugees and Citizenship Canada (IRCC) has extended the period allowed for certain in-Canada work permit applicants to provide a positive Labour Market Impact Assessment (LMIA) after filing their work permit application. The grace period has increased from 60 days to 90 days.
This change applies through Canada’s concurrent processing policy, which allows eligible foreign workers to submit a work permit application before their employer receives a final LMIA decision. Previously, applicants had 60 days after filing to provide proof of a positive or neutral LMIA. Under the new policy, applicants now have 90 days to submit the LMIA, providing additional flexibility while Employment and Social Development Canada (ESDC) processes the employer’s application.
For employers, this update provides an important safeguard against processing delays. LMIA applications can take several months to complete, and workers approaching the expiry of their current work permits may otherwise face interruptions to their employment. The extended 90-day window reduces the risk of qualified employees falling out of status or losing authorization to work while awaiting an LMIA decision.
Frequently Asked Questions
What is the proposed H-1B visa fee for August 2026?
The Department of Homeland Security proposed a new $103,265 fee for all H-1B cap-subject petitions.
Are university H-1B petitions subject to the new proposed fee?
No, cap-exempt petitions filed by universities and certain nonprofit or governmental research organizations are excluded.
What is the status of the $100,000 H-1B fee?
The First Circuit Court of Appeals denied the government’s motion to stay a district court ruling that had vacated the $100,000 fee, meaning it remains vacated while litigation proceeds.
When does the public charge rule rescission take effect?
The final rule rescinding the 2022 public charge regulations takes effect on September 18, 2026.
What did the federal court rule regarding the 75-country immigrant visa ban?
A federal judge in the Southern District of New York vacated the State Department policy that had suspended immigrant visa issuance to nationals of 75 countries.
How long is the extended work permit grace period in Canada?
Canada extended the grace period for in-Canada work permit applicants to provide a positive LMIA from 60 days to 90 days, effective August 21, 2026.
Does the State Department immigrant visa interview pause affect tourist visas?
No, the pause applies to immigrant visa interviews only and does not affect nonimmigrant categories like tourist, business, or student visas.
What are the key dates for the September 2026 Visa Bulletin?
Final action dates for employment-based categories remain mostly unchanged from August, with EB-4 advancing two months to December 15, 2022.
