Business Immigration Updates: Major Changes Ahead for International Students and Green Card Applicants

Last week brought two significant immigration policy developments that employers and HR professionals should be aware of. The first is a final rule from the Department of Homeland Security that will fundamentally change how international students maintain their visa status. The second is a new final rule rescinding the Biden-era public charge regulation, expanding USCIS officer discretion in green card adjudications when it comes to demonstrating financial wherewithal. Both rules carry important implications for your foreign national workforce and take effect in the coming months.

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UPDATE #1: DHS FINALIZES NEW RULE ON F-1 AND J-1 STUDENT VISA STATUS

Effective September 15, 2026

DHS has published a final rule eliminating “duration of status” for F-1 and J-1 visa holders, replacing it with a fixed four-year period of admission. This is a significant structural change to how international students maintain lawful status in the United States.

Under the current system, international students are admitted for the “duration of status,” meaning they can remain in the U.S. as long as they are actively pursuing their academic program, without needing to seek additional government approval at set intervals. Under the new rule, effective September 15, 2026, that changes.

What the new rule does:

• F-1 students and J-1 exchange visitors would be admitted for the period necessary to complete their approved program, up to a maximum of four years. Individuals enrolled in shorter programs would generally receive a shorter period of admission. Those who cannot complete their program before their authorized stay expires would be required to apply for an extension of status to USCIS. 
• USCIS is not required to approve extensions. DHS’s own response to public comments confirms that students “may apply” for an extension, but the rule provides no regulatory assurance that extensions will be granted.
• The rule also shortens the F-1 grace period following completion of studies or OPT from 60 days to 30 days.
• Students who accrue unlawful presence face serious consequences, including three- and ten-year bars on reentry.
• Graduate students are restricted from changing programs or educational levels during their studies, with only narrow exceptions for extenuating circumstances.
• International students who travel outside the U.S. after the rule takes effect and before their I-20 end date may be readmitted with a new, shorter four-year admission clock.
• Optional Practical Training (OPT) and STEM OPT are affected. F-1 students will generally need to file for an extension of status in order to work on OPT.
  
• Students transitioning from OPT/STEM OPT to a new academic program for CPT may need to file an extension of status to maintain valid F-1 status while continuing employment. 

What this means for employers & HR professionals:

• Employees currently in F-1 OPT or STEM OPT status should be evaluated carefully. Their ability to maintain status and work authorization may be affected depending on when they entered the U.S. and when their current status period began.
• Employers who recruit from university talent pipelines should anticipate potential disruption. International students may face more uncertainty in completing their programs and transitioning to employment.
• H-1B petitions filed on behalf of OPT employees should be carefully timed and monitored in light of these changes.
• HR teams should flag any employees in F-1 or J-1 status and consult with immigration counsel to assess the impact of the rule on their specific timelines.

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UPDATE 2: USCIS RESCINDS 2022 PUBLIC CHARGE REGULATION

Effective September 18, 2026

On July 16, 2026, DHS issued a final rule rescinding the Biden-era public charge regulation that has governed green card adjudications since 2022. The rescission takes effect September 18, 2026.

The public charge ground of inadmissibility allows USCIS to deny a green card application if an officer determines the applicant is likely to become dependent on government benefits. The 2022 Biden-era rule had restricted which benefits officers could consider and set a higher bar for a public charge finding. With that rule now rescinded, USCIS officers will have broader discretion to evaluate applicants’ financial situation using a “totality of the circumstances” standard.

What the new rule does:

• The 2022 rule defined a public charge as someone “primarily dependent” on government assistance. That definition is now removed. Officers can weigh a broader range of factors and benefits in making their determination regarding the public charge requirement.
• USCIS officers will assess each applicant’s financial circumstances on a case-by-case basis, with no fixed threshold defining what constitutes a public charge.
• A revised Form I-485 (Application to Register Permanent Residence or Adjust Status) will be required. Beginning September 18, 2026, USCIS will reject older editions of Form I-485 submitted on or after the effective date.
• The rule applies to I-485 applications postmarked or submitted electronically on or after September 18, 2026. For applications filed before that date, the 2022 rule’s standards continue to apply for the period before the effective date.
• Applicants historically exempt from public charge (including refugees, asylees, VAWA self-petitioners, Special Immigrant Juveniles, and T/U visa applicants) remain exempt under the rescission.

What this means for employers & HR professionals:

• Any employee with a pending or upcoming I-485 filing should be made aware of the September 18 effective date, and should consult with immigration counsel before filing.
• Employees who have received means-tested public benefits, including some government assistance programs, may face increased scrutiny under the broader discretionary standard.
• The new Form I-485 will be required for all filings on or after September 18. Do not use older editions of the form after that date, or the filing will be rejected.
• HR teams tracking the status of sponsored employee green card applications should flag any cases approaching or straddling the September 18 effective date for immediate review.

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ACTION STEPS

4. Identify all employees in F-1 or J-1 status, including those on OPT or STEM OPT, and consult with us to assess how the new student visa rule affects their timelines and work authorization. In particular, consider that a large share of students will need to file for extensions to complete their degrees, as several degrees take longer than 4 years.
5. Flag pending or upcoming I-485 filings and review them with immigration counsel in light of the rescission of the public charge rule and the new form requirements effective September 18.
6. Do not use older editions of Form I-485 for filings postmarked or submitted on or after September 18, 2026.
7. Brief HR and Rrecruiting teams about potential impacts on your international student pipeline and talent acquisition strategy.
8. Contact us with any questions about specific employees or cases. Both rules take effect in the coming weeks, and early planning is important.

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ADDITIONAL INFORMATION

Both rules are final and are not currently stayed by court order, though litigation challenging the F-1 student visa rule is anticipated. We will continue to monitor developments and provide updates as additional USCIS guidance becomes available, including on how officers will apply the new public charge standard in practice. We expect USCIS to issue further guidance on public charge criteria before or shortly after the September 18 effective date.

If you have questions about how these rules may affect your workforce or immigration program, please do not hesitate to reach out.