Recent and proposed changes to the H-1B program may have important consequences for employers that rely on foreign national talent. Some of these measures are already in force, while others are still progressing through the regulatory process. Employers should understand both the current immigration requirements and the potential changes on the horizon as they plan future H-1B sponsorship strategies.

Department of Homeland Security Proposes $103,265 Fee for H-1B Cap-Subject Petitions

On August 25, 2026, the Department of Homeland Security (DHS) published a proposed rule that would establish an additional $103,265 H-1B filing fee for all H-1B cap-subject petitions.

The annual H-1B numerical allocation generally includes:

• Up to 65,000 visas under the regular cap
• An additional 20,000 visas under the U.S. advanced-degree exemption for beneficiaries who have earned a qualifying U.S. master’s degree or higher.

The proposed fee would apply to cap-subject petitions under both the regular cap and the U.S. advanced-degree exemption.¹

The proposed fee would be payable when the H-1B petition is filed and would be in addition to all other applicable filing fees or payments. Importantly, it would apply only to cap-subject H-1B petitions, not to all H-1B filings. As a result, the fee generally would not apply to extension, amendment, or change-of-employer petitions filed on behalf of workers who have previously been counted against annual numerical limitation. By contrast, a worker who has never been counted against the cap—for example, certain workers employed only by cap-exempt organizations—may become subject to the cap when moving to cap-subject employment.

Because this is a proposed rule, employers are not currently required to pay the additional $103,265 fee. The public comment period remains open through September 24, 2026. If DHS later issues a final rule, the final rule and its effective-date provisions will determine which future filings are subject to the fee. If finalized, the proposal could significantly increase the cost of sponsoring foreign national employees through the annual H-1B cap process.²

Proposed Rule Would Eliminate the 60-Day Grace Period Following Termination

Another development employers should monitor is a proposed U.S. Citizenship and Immigration Services (USCIS) rule titled “Eliminating the Discretionary 60-day Grace Period.” Under the current regulation, individuals in the following statuses may be eligible for a discretionary grace period of up to 60 consecutive days after employment ends, or until the end of the authorized validity period, whichever is shorter:

• E-1, E-2, E-3
• H-1B, H-1B1
• L-1, O-1
• TN

The grace period may be granted once during each authorized validity period and is intended to provide eligible individuals with time to:

• Seek new employment
• Pursue a change of status
• Or otherwise make arrangements to remain in compliance with U.S. laws and broader immigration compliance requirements

Unless otherwise authorized, the individual may not work during the grace period.

On September 11, 2026, DHS published a proposed rule that would eliminate the discretionary 60-day grace period by removing 8 C.F.R. § 214.1(l)(2).

Why This Matters

The proposed rule has not taken effect, and the existing 60-day grace period remains available under current regulations. Comments on the proposed rule are due November 10, 2026. Employers should continue to follow the existing rule while monitoring this proposal, particularly when handling terminations involving foreign national employees.³

Expanded H-1B and L-1 9-11 Biometric Fees Now Apply to Certain Employers

Effective September 9, 2026, DHS expanded application of the 9-11 Response and Biometric Entry-Exit Fee for certain H-1B and L-1 employers. The final rule applies to employers with 50 or more employees in the United States when more than 50 percent of those U.S. employees, in the aggregate, are in H-1B, L-1A, or L-1B status.⁴

Covered employers must pay an additional

• $4,000 for H-1B petitions
• $4,500 for L-1 petitions

Significantly, the fee now applies to all extension-of-status petitions filed by covered employers, including same-employer extensions. An amended petition that does not request an extension of status remains exempt from the additional fee. Under current law, these fees apply to petitions filed on or before September 30, 2027.⁵

How Employers Should Prepare for Sponsoring H-1B and L-1 Workers

These developments are important considerations for employers planning H-1B and L-1 sponsorship. Employers subject to the expanded 9-11 Biometric Fee should:

• Account for the additional filing costs associated with certain H-1B and L-1 extension petitions beginning September 9, 2026.
• Continue to monitor the proposed $103,265 H-1B cap-subject fee and potential changes to the 60-day post-employment grace period as additional guidance becomes available.

Questions About H-1B Sponsorship Costs, Compliance, or Workforce Planning?

As immigration requirements continue to evolve, employers should proactively assess their sponsorship programs and compliance obligations. Ice Miller’s Immigration attorneys help organizations address H-1B and related sponsorship issues, navigate regulatory changes, and develop practical workforce planning strategies. Contact our team to learn how we can support your business.

^{[1] See U.S. Department of Homeland Security, U.S. Citizenship and Immigration Services, Fee for Certain H-1B Petitions, 91 Fed. Reg. 54817, 54817–19 (Aug. 25, 2026) (Federal Register).
[2] See id. at 54818–19, 54834–35; INA §§ 214(g)(1)(A), 214(g)(5), and 214(g)(7), 8 U.S.C. § 1184(g).
[3] See 8 C.F.R. § 214.1(l)(2); U.S. Department of Homeland Security, U.S. Citizenship and Immigration Services, Eliminating the Discretionary 60-day Grace Period, 91 Fed. Reg. 57807, 57817 (Sept. 11, 2026)
[4] See U.S. Department of Homeland Security, U.S. Customs and Border Protection, 9-11 Response and Biometric Entry-Exit Fee for H-1B and L-1 Visas, 91 Fed. Reg. 51360, 51360 (Aug. 10, 2026) (effective Sept. 9, 2026) (GovInfo).
[5] See id. at 51380; Pub. L. 115-123, § 30203(b), 132 Stat. 64, 126 (2018) (extending the fee through Sept. 30, 2027).}

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.