29 June 2026

Developments in US Immigration Policy: Update on H‑1B Fee Litigation, Travel Restrictions, and Adjustment of Status Guidance

Recent litigation and policy changes reshape key aspects of US immigration, but uncertainty remains

US immigration policy has undergone a series of notable developments in recent months, particularly in relation to the $100,000 H‑1B visa fee, the administration’s vetting framework associated with Executive Order 14161, and updated USCIS guidance on adjustment of status. While these measures initially introduced significant challenges for employers, subsequent litigation and policy clarifications have begun to reshape how they are applied in practice, offering limited clarity within an evolving and still uncertain landscape.

$100,000 H‑1B Fee Subject to Ongoing Legal Challenge

In September 2025, Presidential Proclamation 10973 (“Restriction on Entry of Certain Nonimmigrant Workers”) introduced a $100,000 one-time fee for certain new H-1B petitions, particularly where beneficiaries are outside the United States or require consular processing. Since its implementation, the fee has been subject to ongoing legal challenge.

In June 2026, a federal court held that the fee is unlawful, concluding that it operates more as a tax than a permissible filing fee and therefore requires congressional authorization. However, shortly thereafter, the same court stayed its ruling, allowing US Citizenship and Immigration Services (USCIS) to continue collecting the fee pending the government’s appeal.

As a result, the ultimate outcome now rests with the appellate courts. In the interim, employers must continue to comply with the current requirement while also accounting for the possibility of future change in their planning.

Court Vacates USCIS Adjudication Policies for Nationals of 39 Countries

Separately, there have been significant developments affecting the administration’s country-based vetting and entry restrictions arising from presidential proclamations issued pursuant to the broader national security framework established under Executive Order 14161. These proclamations have imposed full or partial visa suspensions on nationals of 39 designated countries, effective January 1, 2026.

In June 2026, a federal court vacated several USCIS policies that had imposed broad adjudication holds, mandatory reviews, and heightened scrutiny on immigration benefit applications filed by affected nationals. The court found that these measures were inconsistent with the Administrative Procedure Act.

This decision represents a meaningful shift at the adjudication stage. USCIS may no longer delay or condition adjudications solely on the basis of nationality, and previously paused cases have begun to move forward. However, important limitations remain including:

• The ruling does not invalidate the underlying presidential proclamations;
• Visa issuance at US consulates abroad remains subject to existing restrictions; and
• USCIS has not provided clear processing timelines for previously paused cases.

In addition, premium processing is not currently being honored for affected filings.

Heightened USCIS Scrutiny of Adjustment of Status Applications

USCIS has issued new policy guidance affecting Adjustment of Status (AOS) applications (Form I‑485), the process allowing eligible individuals to apply for permanent residence from within the United States.

In May 2026, USCIS reiterated that adjustment of status is a “matter of discretion and administrative grace” and an “extraordinary form of relief,” rather than a routine benefit. While consistent with longstanding legal principles, this signals a more restrictive adjudicatory approach in practice.

Key Elements of the Policy Shift

• Heightened discretionary review: Approval may be less readily presumed in practice, even where statutory eligibility is met;
• AOS reframed as exceptional: Adjustment is positioned as an alternative, rather than a default pathway;
• Consular processing emphasized: Immigrant visa processing abroad is described as the “ordinary” route; and
• Totality of circumstances test: Officers are directed to weigh positive and adverse factors, including immigration history and compliance, when determining whether AOS is appropriate.

This guidance took immediate effect and applies to both pending and new filings.

Practical Impact

Importantly, the policy does not change eligibility criteria or filing requirements, but it introduces a more rigorous discretionary framework. As a result:

• Applicants may face increased scrutiny, particularly where adverse factors exist; and
• Employers and applicants should more carefully assess whether adjustment of status or consular processing presents the lower-risk option.

Despite initial concern, adjustment of status remains available across categories, including employment-based cases, albeit subject to heightened review.

Taken together, these developments underscore the complexity of the current immigration landscape. While recent court decisions and agency guidance have curtailed certain implementation mechanisms, the broader policy framework remains in place. Accordingly, strategic planning should balance immediate operational needs with the understanding that these policies remain subject to ongoing litigation, evolving guidance, and shifting adjudicatory practices.

Contact Us

If you have questions about how these developments may impact your organization or your employees’ immigration status, please contact your Laura Devine Immigration attorney or email enquiries@lauradevine.com.