Latest Developments in U.S. Visa and Immigration Policy: Key Points for International Students, Expatriate Employees, and Companies [October 2026 Update]

In 2026, U.S. immigration law has seen a series of major changes affecting both student and work visas. Many of them, however, are still only proposals or have been blocked by the courts, so they are not yet in effect. This post summarizes the main developments as of October 20, 2026, and highlights what international students, expatriate employees, and companies from Japan should watch. The situation changes daily, so please check the latest information before taking any action.

This is still a proposal, and the current 60-day grace period remains in effect. If finalized, however, it will directly affect everyone working in the U.S. on a work visa, including E-2 expatriate employees.

What is the 60-day grace period?

A work visa is based on employment with a specific company. If you resign or are laid off, you lose your basis for staying in the U.S., even if your visa has not expired, and you would normally have to leave. To provide relief, since 2017 workers have been allowed to remain lawfully in the U.S. for up to 60 days after their employment ends. During this period, they could look for a new employer, change to another visa status, or prepare to return home.

What would change?

On September 11, 2026, the Department of Homeland Security (DHS) published a proposed rule to eliminate this 60-day grace period. If the rule is finalized, a worker would in theory be out of status the day after employment ends. Unless they have another basis for staying, they would need to leave the U.S. immediately.

  • Who is affected: E-1, E-2, H-1B, L-1, O-1, E-3, H-1B1, and TN status holders.
  • Family members: Accompanying dependents, such as spouses and children, would be treated the same way.
  • What stays: The grace period of up to 10 days after the authorized stay expires (E, H-1B, L-1, and TN only) would remain even if this proposal is adopted.

Timeline

The public comment period closes on November 10, 2026. DHS will then decide whether to issue a final rule. No date has been set.

What to do now: you may have almost no time

  • HR personnel: Talk to an immigration attorney before deciding on resignations or layoffs. It is important to prepare a successor’s visa petition or the employee’s change of status before the last day of employment.
  • Visa holders: You would have little room to maneuver after leaving your job. If you are thinking about changing jobs, work with HR on the timing of your resignation and of the visa petition with your new employer.
  • Family members: Dependents’ status depends on the principal work visa holder’s status, so the whole family’s plans need to be checked together.

What the rule says

On July 17, 2026, DHS published a final rule replacing the traditional “Duration of Status” (D/S) admission for F (students), J (exchange visitors), and I (foreign media representatives) with fixed admission periods. It was scheduled to take effect on September 15. Its main provisions are:

  • F-1 and J-1 admission would be fixed at the program end date on the Form I-20 or DS-2019, up to a maximum of four years.
  • I status would be limited to a maximum of 240 days (generally 90 days for holders of passports issued by the People’s Republic of China).
  • Staying beyond the admission period would require either an extension application to USCIS (Form I-539) or departure and re-entry.
  • The F-1 departure grace period would be shortened from 60 days to 30 days.
  • New restrictions would apply to school transfers, changes of major, and pursuing additional degrees.

Blocked nationwide just before it took effect

On September 14, 2026, one day before the effective date, the U.S. District Court for the District of Massachusetts issued a preliminary injunction blocking the rule nationwide. The court found that DHS had not adequately considered the rule’s costs and impacts and that the rule likely violated the Administrative Procedure Act (APA). This is not a final judgment. DHS may appeal, and depending on how the litigation develops, the rule could still take effect.

Practical points

F, J, and I status holders currently in the U.S. may continue to stay under D/S. If you travel abroad and re-enter, always check your CBP-issued Form I-94 to see whether it shows “D/S” or a fixed date.

On October 8, 2026, DHS published a proposed rule that would impose high fees on Optional Practical Training (OPT) for F-1 students:

  • Fee amounts: $70,000 for an initial OPT recommendation, and $30,000 for each later recommendation (including STEM OPT extensions).
  • Who pays: The university pays, not the student. However, universities would be allowed to pass the cost on to students or employers.
  • Total for STEM: A student who uses post-completion OPT followed by a STEM OPT extension would face a total of $100,000.
  • Open question: DHS is also asking for comments on whether to charge the $70,000 fee again for each degree level, such as a bachelor’s and then a master’s.
  • Effective date: The rule would take effect 60 days after the final rule is published. Students whose OPT is approved or recommended before then would not be subject to it.
  • USCIS fee: The regular USCIS OPT filing fee (currently $470–$520) would still apply separately.

The public comment period closes on November 9, 2026. Colleges and universities benefit greatly from international students, so opposition from schools is strong. There are already reports of a sharp drop in international student numbers. If the rule is finalized, litigation is widely expected.

A September 2025 presidential proclamation required a $100,000 payment for new H-1B petitions. Here is what has happened since:

  • June 2026: The U.S. District Court for the District of Massachusetts held the requirement unlawful.
  • July 2026: The court of appeals denied the government’s motion for a stay.
  • September 18, 2026: A new proclamation extended the fee requirement through September 2027.
  • September 30, 2026: The U.S. District Court for the Northern District of California barred collection of the fee, including under the extension.

As a result, employers currently do not need to pay the $100,000 fee. Separately, DHS has issued a proposed rule that would impose a $103,265 fee on H-1B petitions subject to the lottery. The rule is currently in the comment review stage and is not yet in effect.

Other H-1B developments

  • Since February 2026, the lottery has changed from random selection to a wage-based weighted selection system (already in effect).
  • In October, a proposal was issued to eliminate the policy of giving deference to prior approvals in extension adjudications (“prior deference”).
  • Under a September executive order, H-1B petitions filed by companies that have conducted layoffs are expected to face stricter scrutiny.

The end of automatic extensions applies to certain categories of Employment Authorization Documents (EADs). Under the old system, if you filed a renewal application on time, your work authorization and EAD validity were automatically extended for up to 540 days while the application was pending. Renewal applications filed on or after October 30, 2025, generally no longer receive this automatic extension. A final rule issued on October 14, 2026, confirmed the measure that was already being applied.

Impact

The people most affected include certain H-4 spouses working with an EAD, and people working with an EAD based on a pending application to adjust status to permanent residence (Form I-485) inside the U.S. You can still file renewal applications. However, if your renewal is not approved before your current work authorization expires, you must stop working unless you have another basis for employment authorization. Automatic extensions based on eligible renewal applications filed before October 30, 2025, remain in place, as do exceptions provided by statute or by separate Federal Register notices.

STEM OPT is separate

This is easy to confuse with STEM OPT for F-1 students:

  • The 24-month STEM OPT extension is not affected. Students who earn a degree in a qualifying STEM field and meet the other requirements can still apply for it.
  • A separate 180-day rule still applies. If a STEM OPT application is filed properly and on time, the student may keep working after the current OPT expires while the application is pending. This lasts up to 180 days or until USCIS decides the case, whichever comes first.

This change concerns the “automatic extension of up to 540 days while pending” that used to apply to certain EAD renewal applications. It does not concern the STEM OPT extension system.

In December 2025, U.S. Customs and Border Protection (CBP) announced a plan to make it mandatory for ESTA applicants to disclose their social media accounts from the past five years. CBP also proposed requiring past email addresses and phone numbers, information about family members, and a facial photograph (selfie).

As of October 2026, however, we have not been able to confirm that this requirement has formally taken effect. On the current ESTA application, the social media field reportedly remains the “optional” item it has been since 2016. Even so, CBP officers are generally understood to already have the authority to ask about social media at the port of entry, so travelers should not be complacent.

In addition, the Department of State has announced that online presence review for visa applications at U.S. embassies and consulates now extends to I (foreign media representatives) and TN/TD (USMCA professionals and their dependents) applicants. These applicants are asked to set their social media accounts to “public.” According to summaries from several law firms, this review already applies to E-1/E-2, F, M, J, H-1B, H-4, and other categories. The review criteria have not been published. Any information seen as unfavorable could lead to additional review, delays, or denial, so please be careful.

As described above, many of these changes are either in litigation or still at the proposal stage, and the situation may shift over the coming weeks and months. This blog post is general, personal information based on what the author could find as of October 20, 2026. It is not legal advice for any individual case.

Our firm’s attorneys and Legal Specialist (gyoseishoshi), licensed in both the U.S. and Japan, advise on both U.S. visas and Japanese residence status. Please feel free to contact us.


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