USCIS tech‑firm green‑card suspension – tracking rule issuance and outcome

What happened

The Department of Homeland Security (DHS) issued a proposed rule on October 13, 2026, to eliminate the regulatory requirement that U.S. Citizenship and Immigration Services (USCIS) give weight to prior approvals when adjudicating extension requests for H-1B visas and other temporary immigration statuses 1. This proposal reverses a 2024 regulation that codified the "prior deference" policy, which generally accepted earlier favorable determinations when the same worker sought an extension under substantially similar circumstances 1. The new rule would require USCIS to conduct fresh reviews of eligibility for every extension, reviving a policy approach from the first Trump administration 1.

On October 7, 2026, DHS announced a separate proposed rule requiring U.S. universities to pay a $70,000 fee for each F-1 student’s initial Optional Practical Training (OPT) work authorization 2. The proposal also mandates a $30,000 fee for subsequent OPT requests 2. Under this rule, USCIS will not approve work authorization unless the school’s Designated School Official (DSO) confirms the fee has been paid within the Student and Exchange Visitor Program system 2.

These regulatory actions follow the October 8, 2026, announcement by Labor Secretary Keith Sonderling suspending Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCLTech, and Capgemini from the Permanent Labor Certification (PERM) program 2. The Department of Labor (DOL) stated it will not accept new applications or process pending cases for these eight firms, which have collectively received over 100,000 permanent labor certifications since 2009 2.

Why it matters

The elimination of the deference policy subjects foreign professionals, particularly Indian nationals in the technology and engineering sectors, to renewed scrutiny even when their employment circumstances are unchanged 1. Employers face increased administrative burdens and less predictability in the extension process, as they must re-establish eligibility under applicable standards for every filing 1.

The proposed OPT fees shift a significant financial burden to U.S. universities, as the $70,000 and $30,000 charges are tied to the school's recommendation rather than a specific employer 2. While the fees would not apply retroactively to OPT already in progress, they would apply to all recommendations made after the rule's effective date 2.

The PERM suspension indefinitely blocks the path to permanent residency for employees at the affected firms 2. Vice President J.D. Vance stated the suspension will last "as long as it needs to" while the government investigates allegations of visa fraud and system abuse 2. Concurrently, the October 2026 Visa Bulletin reported retrogressions in several employment-based categories for "Rest of World" countries, further complicating long-term immigration planning for foreign professionals 2.

What's next

The public comment period for the proposed $70,000 OPT fee is open through November 9, 2026 2. If finalized, DHS intends to wait 60 days before implementation to allow institutions to prepare, though legal challenges from higher education and business associations are expected 2.

The DHS proposal to end H-1B deference will also undergo a public comment period before the administration decides whether to issue a final regulation 1. A federal court ruling on the October 5, 2026, lawsuit filed in Massachusetts would determine the validity of USCIS policies regarding administrative discretion in green card denials. The release of a DOL compliance report or a formal notice in the Federal Register would be required to clarify the duration and regulatory framework of the PERM suspension for the eight named technology companies.