Important Business Immigration Updates: H-1B Court Rulings, Proposed $70K OPT Fee, USCIS Fee Increases, October Visa Bulletin & More

Court Postpones DHS Fixed-Term Admission Rule for F, J, and I Visa Holders

A federal court has postponed the Department of Homeland Security’s new fixed-term admission rule for F, J, and I nonimmigrants, one day before it was scheduled to take effect on September 15, 2026. As a result, the existing duration-of-status framework remains in place for international students, exchange visitors, and foreign media representatives. The rule would have replaced duration of status with fixed admission periods, including a general four-year limit for F and J nonimmigrants, and would have required many individuals needing additional time to file for an extension of stay.

For employers that rely on international students and other foreign talent, the postponement means there is no immediate change to the current compliance framework. The rule’s new extension-of-stay requirements and fixed admission limits are not currently in effect, and the existing 60-day departure grace period remains in place. However, the court’s decision is interim rather than a final resolution of the case. Employers should continue monitoring the litigation and any subsequent DHS guidance, particularly when planning for employees in multi-year academic programs, practical training, research appointments, or other F, J, or I classifications. Monty & Ramirez LLP is closely monitoring the ongoing litigation and any additional guidance from DHS and will provide updates as developments occur.

DHS Proposes $70,000 Fee for International Student Work Authorization (OPT)

On October 7, 2026, the Department of Homeland Security (DHS) proposed a rule that would impose significant new fees to the Optional Practical Training (OPT) program. OPT allows F-1 students to work in jobs directly related to their field of study during or after their studies. Under the proposed rule, DHS would require SEVP-certified educational institutions to pay a $70,000 fee for each F-1 student participating in OPT for the first time, as well as an additional $30,000 fee for each student who engages in any subsequent OPT authorization. DHS proposes that the rule become effective 60 days after publication of the final rule in the Federal Register, providing schools, students, and employers time to prepare for the changes. If the rule is finalized, it could greatly reduce the number of OPT and STEM OPT candidates available. Employers who rely on F-1 graduates for technical roles should watch the public comment period and any legal challenges, as well as consider alternative workforce planning strategies, such as pursuing H-1B sponsorship or other employment-based immigration options earlier. Monty & Ramirez LLP is continuing to monitor changes to OPT and will provide updates as developments occur.

H-1B Changes Bring Increased Compliance Scrutiny for Employers

Recent federal actions affecting the H-1B program may create additional compliance considerations for employers that sponsor foreign national workers. On September 18, 2026, the White House announced measures directing federal agencies to increase coordination and scrutiny of H-1B petitions, Labor Condition Applications, visas, and entries. The actions also sought to extend restrictions involving a $100,000 payment for certain H-1B workers seeking entry to the United States, subject to limited exceptions.

One significant development for employers is the increased attention being given to layoffs and workforce reductions. Federal agencies are directed to consider whether an H-1B sponsor has conducted layoffs during the preceding year or plans future layoffs affecting similarly situated U.S. workers. This does not create a categorical prohibition on H-1B sponsorship following layoffs, but employers may face additional scrutiny when immigration sponsorship and workforce reductions overlap.

Employers using staffing, outsourcing, consulting, or third-party placement arrangements should also pay close attention. Companies should review their H-1B documentation to ensure that worksites, job duties, wages, educational qualifications, and employment relationships are accurately and consistently reflected in immigration filings and company records.

Second Federal Court Blocks $100,000 H-1B Fee

The legal landscape surrounding the $100,000 H-1B payment continues to develop. On September 30, 2026, a federal judge in the Northern District of California became the second federal court to block implementation of the $100,000 payment. The court vacated and remanded the agency policies implementing the fee and barred federal agencies from enforcing or implementing those policies. Importantly, the ruling expressly extends to the September 2026 proclamation that sought to renew the payment requirement through September 21, 2027.

The California decision follows a June 2026 ruling from a federal court in Massachusetts that also vacated the policies implementing the $100,000 payment. The government is appealing that earlier decision, but the First Circuit previously declined to allow the fee to take effect while the appeal proceeds. As a result, the $100,000 payment is not currently being collected. Litigation remains ongoing, however, and employers should continue monitoring developments, particularly when planning H-1B filings or international travel.

For employers, these developments underscore the importance of coordinating immigration planning with broader workforce decisions. Reviewing H-1B sponsorship, recent reductions in force, Labor Condition Applications, wage information, worksites, and anticipated travel can help identify potential compliance concerns before they affect a petition or an employee’s ability to enter the United States.

Monty & Ramirez LLP continues to monitor H-1B policy changes and related litigation and will provide updates as additional guidance and court decisions become available.

USCIS Announces FY 2027 Immigration Fee Increases Effective October 16

U.S. Citizenship and Immigration Services (USCIS) has announced inflation-adjusted increases to certain immigration-related filing fees for Fiscal Year 2027. The new fees will take effect October 16, 2026, and apply to applicable requests postmarked on or after that date.

The increases are relatively modest and reflect inflation adjustments required under H.R. 1. Among the changes, the Annual Asylum Application Fee will increase from $102 to $105, the immigration parole fee associated with Form I-131 will increase from $1,020 to $1,050, certain initial Form I-765 employment authorization fees will increase from $560 to $570, and the Form I-821 Temporary Protected Status application fee will increase from $510 to $520.

Applicants and employers assisting foreign national employees should be aware of the October 16 effective date when preparing upcoming filings. USCIS may reject applications postmarked on or after October 16 that do not include the correct updated filing fee.

Expanded Social Media Vetting for Additional Visa Categories

The U.S. Department of State announced that, effective October 1, 2026, it will expand its social media screening requirements to applicants seeking TN, TD, and I visas. As part of the enhanced vetting process, applicants in these categories will be instructed to make all social media profiles publicly accessible to facilitate government review during visa adjudications.

This requirement builds on existing social media screening measures that already apply to several nonimmigrant visa categories, including F, M, H, J, K, Q, R, S, T, and U visas. According to the Department of State, the expanded review is intended to strengthen national security screening and help verify applicants’ eligibility for the requested visa classification.

Individuals applying for TN, TD, or I visas should be aware of the new requirements and review their online presence before attending visa interviews.

Federal Appeals Court Blocks IRS–ICE Taxpayer Data Sharing

The U.S. Court of Appeals for the D.C. Circuit has upheld a preliminary injunction preventing the IRS from sharing certain confidential taxpayer information with U.S. Immigration and Customs Enforcement (ICE). The dispute stems from a 2025 agreement that allowed the IRS to provide taxpayer address information to immigration authorities for certain investigations. According to the challengers, information involving approximately 47,000 individuals had been shared under the agreement.

The appeals court concluded that the challengers were likely to establish standing and left the lower court’s restrictions on the data-sharing arrangement in place while the litigation continues. For immigrant taxpayers, the decision is significant because it preserves, for now, restrictions on the use of confidential tax information for immigration enforcement purposes.

Employer & Taxpayer Takeaway: Employers should continue maintaining accurate employment and tax records and following existing Form I-9 and employment verification requirements. For individual taxpayers, the ruling means the injunction currently limits the IRS from sharing protected taxpayer information with ICE under the challenged agreement. However, the litigation is ongoing, and the decision does not eliminate ICE’s other lawful immigration enforcement tools or change an individual’s obligation to comply with federal tax laws.

EB-5 Filing Fees Set to Increase November 30

U.S. Citizenship and Immigration Services (USCIS) will increase several filing fees for the EB-5 Immigrant Investor Program beginning November 30. The filing fee for Form I-526E, used by regional center investors, will increase from $3,675 to $7,850, while the fee for Form I-526 for standalone investors will rise from $3,675 to $7,615. The fee for Form I-829, used to remove conditions on permanent residence, will increase from $3,750 to $5,000. USCIS states that the new fee schedule is intended to cover the costs of administering the EB-5 program and supporting program integrity measures. Prospective EB-5 investors considering filing should be aware of the November 30 effective date when planning the timing of their cases.

El Salvador TPS: Employers Should Carefully Verify Work Authorization

Employers with Salvadoran TPS employees should carefully review current USCIS guidance regarding employment authorization and Form I-9 requirements. A pending Form I-765 application does not, by itself, establish that an employee is authorized to work. Whether an employee may continue working depends on the individual’s documentation, EAD category and expiration date, and whether the document qualifies for an applicable automatic extension or other USCIS-issued extension.

HR teams should avoid relying solely on an employee’s online USCIS case status showing that a work permit application is pending. Employers should follow Form I-9 rules and current USCIS guidance when determining whether documentation establishes continued employment authorization, while also avoiding improper reverification or requesting more or different documents than required.

For the latest government guidance, visit the USCIS Temporary Protected Status – El Salvador page.

Increased Worksite Enforcement and I-9 Compliance Activity

Federal immigration enforcement activity continues to increase in 2026, with a growing focus on workplace investigations, I-9 audits, and targeted enforcement actions against employers in industries with large workforces. Employers should be prepared for Notices of Inspection (NOIs), site visits, and possible coordination between ICE, DHS, and other federal agencies. Common triggers for investigations may include Social Security no-match issues, inconsistent payroll records, subcontractor compliance concerns, and prior audit history. Employers are encouraged to conduct proactive internal I-9 reviews, update onboarding procedures, train HR personnel, and develop response protocols to minimize operational disruption and legal exposure. To get a customized immigration compliance plan, call the Monty & Ramirez team at 281-493-5529.

October 2026 Visa Bulletin

A. Dates for Filing for Employment-Based Visa Applications

For October 2026, USCIS announced it will use the Dates for Filing chart published by the Department of State.

Note: While EB-1 for China and India advanced by approximately one year, several Rest of World and cross-chargeability categories in EB-2 and EB-3 experienced moderate retrogression or adjustments as the government resets annual visa allocations for the new fiscal year. Employers and foreign national employees should carefully review the applicable category and priority date when assessing filing eligibility.