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5 Updates That Will Shape How HR Teams Work with Foreign Talent in 2026

Immigration policy saw several significant changes in 2025 that will shape how HR professionals hire and support employees in 2026.

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Nov 30, 2025
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Last updated on Nov 30, 2025

Immigration policy saw several significant changes in 2025 that will shape how HR professionals hire and support employees in 2026.

From new fees and processing changes to evolving compliance expectations, these updates can impact your recruiting pipelines, onboarding timelines, and employee experience. Being fluent in the latest immigration changes will help you set realistic expectations with business leaders and protect your company’s foreign employees.

5 Updates That Will Shape How HR Teams Work with Foreign Talent in 2026

The biggest U.S. immigration policy changes, with the broadest implications for most employers who hire foreign workers, include:

  1. A new $100,000 fee on H-1B visa petitions filed for workers outside of the U.S. 
  2. The end of automatic extensions of Employment Authorization Documents (EADs or “work permits”)
  3. Proposed changes to the H-1B lottery
  4. The DOL has increased scrutiny of H-1B employers
  5. Consular processing changes for interviews

Below, we break down what changed, when it happened, and actions to take in response to these immigration policy updates.

1. $100,000 H-1B fee for new petitions 

Beginning on September 21, 2025, new H-1B petitions for workers residing outside the U.S. must include proof of a $100,000 payment.

Under a presidential proclamation issued on September 19, 2025, employers filing new H-1B petitions on or after September 21, 2025 for workers who are currently outside the United States are required to make this additional payment, with only narrow exceptions. In practice, that dramatically increases the cost of sponsoring new H-1B workers abroad who are unable to seek a change of status, amendment, or extensions of status. 

The fee is currently only authorized for petitions filed through September 21, 2026, but it could be extended.

Importantly, filings made by H-1B workers already inside the U.S., such as extensions, amendments, or changes of status, are not subject to the new fee.

What to do next: As of late 2025, the $100K H-1B fee is in effect. Human resources professionals should plan as if it will apply to any new H-1B petitions your organization expects to file for workers abroad in the next cap season, unless and until official guidance changes.

Actions you can take

  • Audit your H-1B strategy and budget. Partner with both your finance department and immigration counsel to identify roles where H-1B is the default path and model the new “all-in” cost of sponsorship with the extra $100,000 fee.
  • Consider whether some roles can be filled via H-1B alternatives (e.g., TN, J-1, E-3, L-1, O-1) instead of new H-1Bs.
  • For critical H-1B hires, ensure stakeholders understand that immigration has now become a more expensive decision for high-level approvers, not just a back-office administrative cost.

2. The end of automatic extensions of Employment Authorization Documents (EAD)

Employment Authorization Documents (EADs), often referred to as “work permits,” are how many foreign national employees prove their right to work in the U.S.

Previously, eligible employees who filed a timely EAD renewal could keep working for up to 540 days after their current card expired, thanks to an automatic extension tied to their pending renewal. For HR teams, that created a helpful buffer against processing backlogs.

That buffer is now disappearing for most categories.

In October 2025, the Department of Homeland Security (DHS) issued an interim final rule ending automatic EAD extensions for most categories. For renewal applications filed on or after October 30, 2025, work authorization will typically end on the EAD expiration date unless the new card is approved in time.

This change affects a wide range of workers, including many H-4 holders, adjustment-of-status applicants, and certain humanitarian categories, who previously relied on automatic extensions to bridge processing backlogs.

The new rule was issued as an interim final rule in October 2025, but the public comment period ended on December 1, 2025. Employers should plan that automatic extensions are gone for new renewal filings and plan I-9 reverifications accordingly.

Actions you can take

  • Track employees’ EAD expiration dates closely. Give yourself 6 months of lead time to work with critical employees to file their extensions.
  • Build a standard process to:
    • Flag upcoming EAD expirations
    • Encourage employees to file renewals as early as allowed
    • Create a backup plan for gap coverage, such as temporary role shifts or unpaid leave, if a renewal is delayed
  • Train HR and managers on the risk of sudden work authorization gaps, so they don’t accidentally allow unauthorized work or terminate employees prematurely.

3. Proposed changes to the H-1B lottery

Each year, U.S. Citizenship and Immigration Services (USCIS) runs a lottery to decide which “cap-subject” H-1B candidates can file full petitions for a limited number of H-1B visas.

DHS has proposed a rule that would replace the current random H-1B lottery with a weighted selection process that gives higher chances to higher-paid roles.

In the proposal, each registration would get a number of “entries” in the selection process tied to the Department of Labor wage level offered for the job. A common version of the proposal looks like this:

  • Level IV (fully competent) → four entries
  • Level III (experienced) → three entries
  • Level II (qualified) → two entries
  • Level I (entry-level) → one entry

In short, the higher the salary/wage level, the higher the chance of selection.

The proposed rule was published in the Federal Register in late September 2025, and the comment period ended 30 days later.

The proposal rule hasn’t yet been finalized. Many expect DHS to try to finalize it in time for a future H-1B cap season. HR leaders should be prepared for changes when the final rule is published.

Actions you can take

  • Plan different scenarios by wage level.
    • Identify which H-1B candidates in your pipeline fall into Level I–IV wage bands.
    • Model how a wage-weighted lottery would change their chances.
  • For critical roles at lower wage levels, consider:
    • Targeting higher salary bands
    • For future or recent graduates, you could consider leveraging temporary work authorizations, such as F-1 Optional Practical Training (OPT), or other categories as a bridge
    • Exploring alternatives like L-1, TN, or global roles if H-1B odds fall sharply
  • Stay in close contact with your immigration counsel to get updates when the rule is finalized.

4. The DOL has increased scrutiny of H-1B employers

In September, the Department of Labor announced Project Firewall, a cross-agency effort to enhance federal enforcement of H-1B rules. Through Project Firewall, the federal government will use its authority to investigate businesses for compliance with the H-1B program’s stipulations on wages, job opportunities, and worker rights.

In its press release, the DOL said it would punish noncompliant H-1B employers through fines and even debarment from the H-1B program.

While the DOL has always had jurisdiction over labor law violations, historically it does not take action until it has received a complaint from a wronged employee. What Project Firewall changes is to give the Office of the Secretary of Labor the ability to proactively investigate companies “if reasonable cause exists,” creating new urgency for companies to demonstrate careful observance of the law.

Actions you can take

  • Perform an internal review of all H-1B hiring practices to determine whether they were in close compliance with immigration and labor law.
  • Keep copies of all documentation involved in the hiring process for each H-1B worker, including the initial petitions, prevailing wage determinations, and labor condition applications.
  • Stay up to date on further announcements from the DOL, which may include future guidance on changes to the H-1B program.

5. Consular processing changes for interviews

In 2025, the U.S. Department of State made several changes that significantly affect consular processing for nonimmigrant visas:

Interview waivers rolled back.
Most pandemic-era interview waivers (known as “dropbox” renewals) have been eliminated. Most nonimmigrant visa applicants—including many renewals—must attend an in-person interview, regardless of age. Only limited categories (certain diplomatic and official visas, and a narrow group of B-1/B-2 renewals) remain eligible for waivers.

End of most “third-country” visa stamping.
New policies require most applicants to apply for their visas in their home country or country of legal residence, effectively ending routine “visa runs” to third countries with shorter wait times, Mexico or Thailand, for example.

Expanded consular authority to deny visas based on health conditions.

Internal guidance from DHS to consular officers in November 2025 gave them greater discretion to deny visas based on chronic health conditions such as obesity, cardiovascular disease, cancer, and other medical issues. The guidance hinges on whether a consular officer thinks a visa applicant would potentially need government assistance to pay for the cost of medical care.

This means that with more in-person interviews required, there will be longer waits for interview appointments, higher travel costs, more potential travel delays, and less flexibility about where employees can apply for their visas.

These policies are already impacting visa wait times and travel planning. Consulates in high-demand countries like India and China are expected to see growing backlogs as more applicants funnel into in-person interviews.

Actions you can take

  • Treat consular travel as a project.
    • Require employees to coordinate with HR before booking international trips that involve visa stamping.
    • Build realistic timelines into offer letters and relocation plans, assuming longer interview wait times and potential delays.
  • For critical employees traveling for stamping, consider:
    • Avoiding nonessential international travel when a visa is close to expiration
    • Scheduling trips around when workers need to be in their home country for an interview and allowing extra time, if needed, to complete the interview and any other required screenings
  • Communicate clearly that consular processing is now a bigger risk factor in overall workforce planning, not just a travel logistics issue.

Staying Ahead of Immigration Risk in 2026

Altogether, these changes will make hiring foreign nationals more challenging and expensive. Keeping informed of all the latest developments and working with the right legal counsel is key to updating your company strategies for hiring and retention.

To stay ahead in 2026, treat immigration as a cross-functional priority. It’s more critical than ever to bring HR, legal, talent acquisition, and finance together to regularly review visa sponsorship strategy, tracking, and budget. 

Put simple but reliable systems in place to monitor visa status, EAD expirations, and consular travel, keep leaders informed about shifting timelines and costs, and stay closely aligned with your immigration counsel. 

Reach out to Manifest Law to see how they can support your talent strategy with their deep expertise.

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