DHS Suggests Significant H-1B Revisions Focusing on Cap Exemptions, Third-Party Placements, and Employer Compliance

WASHINGTON, August 25, 2026 — The Department of Homeland Security (DHS) has initiated the regulatory process to propose sweeping changes to the H-1B visa program, with the proposal currently under review at the Office of Management and Budget (OMB) .

According to DHS's regulatory description, the proposed rule would revise eligibility for cap exemptions, provide greater scrutiny of employers deemed to have violated program rules, and increase oversight of third-party placements, among other changes .

Published: August 25, 2026 | By VisasUpdate.com Editorial Team

DHS proposes major H-1B program changes targeting cap exemptions, third-party placements, and employer compliance

What the Proposed Rule Would Change

Area	Proposed Change
Cap Exemptions	Revise eligibility for institutions currently exempt from the annual H-1B cap
Employer Scrutiny	Increased oversight of employers with program violations
Third-Party Placements	Stricter rules for H-1B workers placed at third-party worksites

The proposal would also address concerns around fraud and abuse in the H-1B program, building on existing rules that require third-party worksite positions to be in specialty occupations .

Which Employers Are Affected?

Cap-Exempt Employers Under Review

Currently, institutions of higher education, affiliated nonprofit organizations, and nonprofit or governmental research organizations are exempt from the annual H-1B cap . The proposed rule would revise eligibility for these cap exemptions .

Third-Party Placements in the Spotlight

Under existing rules, if an H-1B worker is placed at a third-party worksite, the requirements of the third party — not the petitioner — are most relevant in determining whether the position qualifies as a specialty occupation . The new rule is expected to increase scrutiny of such arrangements .

What Happens Next

Step	Timeline
OMB Review	Currently underway
Federal Register Publication	Following OMB clearance
Public Comment Period	30 or 60 days after publication
Final Rule	After DHS reviews comments

Parallel Actions: $103,265 Fee Proposal

The H-1B program changes come just one day after DHS proposed a $103,265 fee for all H-1B cap-subject petitions . The fee proposal is estimated to generate approximately $8.8 billion annually and would apply to both change of status and consular notification petitions .

According to DHS, the fee would "recover a portion of the federal government's costs for administering the lawful immigration system" . The proposed fee would apply to the 65,000 regular H-1B visas and the additional 20,000 reserved for U.S. advanced degree holders .

The public will be given a 30-day period to submit comments on the fee proposal once published in the Federal Register .

Read Also

• USCIS Proposes $103,265 Fee for H-1B Cap-Subject Petitions – Comments Open August 25

• September 2026 U.S. Visa Bulletin: Family Green Cards Make Big Leaps as Employment-Based Visas Hit Wall

• USCIS Expands Public Charge Review: New Green Card Guidance Takes Effect September 18

• US Immigration Regulatory Agenda 2026: H-1B Reforms, PERM Labor Market Test Changes, Student Visa Fixed Admission & More – What Employers Need to Know

Quick Reference Summary

Aspect	Details
Proposal Status	Under OMB review
Public Comment	30-60 days after publication
Key Changes	Cap exemption revisions, employer scrutiny, third-party oversight
Affected Employers	All H-1B petitioners, particularly those using cap exemptions or third-party placements
Exemptions Under Review	Higher education, nonprofit, and research organizations
Effective Date	Not until final rule is published

For the latest immigration updates, visa policy changes, and 2026 developments worldwide, visit: visasupdate.com/blog/category/usa

VisasUpdate.com – The world's most trusted visa intelligence hub.Unlock 2026 immigration breakthroughs, digital nomad policies, and real-time fee alerts—all in one place.

Bookmark us now: visasupdate.com/news – Stay ahead.