Immigration news is arriving from every direction, and it is easy to assume every headline means new risk for every foreign national employee. It does not. Some of these changes are already in effect, some are proposals with no final rule, and several employee populations are not affected at all. Here is how to tell the difference and where you need to act.
- Day 1 CPT: Under real pressure. Confirm every current case directly with the school rather than assuming their CPT program is still compliant.
- Internships on CPT: Before any new employee starts on CPT, get the school to confirm in writing that practical training is mandatory for every student in the program, not just available for credit, and that it will issue the CPT-authorized Form I-20 before the start date.
- F-1 Visa Status Expiration (OPT & STEM OPT): OPT and STEM OPT are unaffected by the CPT guidance. Starting September 15, track two dates for every F-1 employee: their OPT or STEM OPT expiration date and their new fixed F-1 admission expiration date.
- H-1B fee hike: DHS has proposed a $103,265 fee on H-1B petitions selected through the lottery. It is not in effect and has no final rule or date.
- H-4 EAD: DHS plans to eliminate H-4 work permits. It is not in effect and has no proposed rule or date.
- All other visa types: Employees already working on H-1B, L-1, O-1, TN, E-3, or a green card do not face a new work-authorization problem from any of this.
These developments affect different employees on different timelines, so treat them population by population rather than as one company-wide freeze.
When each change matters
| Development | Status as of September 1, 2026 | When you will feel it |
|---|---|---|
| Limitations of internship through CPT | Already being applied by schools | Immediately, including Fall 2026 internships |
| F-1 visa status expiration | Final rule | Takes effect September 15, 2026 |
| Proposed $103,265 H-1B lottery fee | Proposed only | A future lottery cycle, only if finalized |
| Eliminating H-4 work-permit eligibility | Long-term regulatory plan only | Unknown. No proposed rule or effective date exists |
| Broader CPT and OPT rulemaking | Future proposed rule | Proposed text currently targeted for around February 2027 |
Where Day 1 CPT stands right now
Day 1 CPT has not been banned, but it is getting narrower. Schools must now confirm that practical training is essential to every student's degree, not simply available for credit, before they can authorize it. Graduate programs also face new limits on transferring schools or repeating a similar degree level, which cuts off a common way employees have used a second master's program to keep working under Day 1 CPT.
Treat a current or planned Day 1 CPT case as high risk when any of the following applies:
- The degree is at the same level as one the employee already completed after September 15.
- The program was chosen mainly to preserve employment rather than for its academic content.
- The employer and school have no established training agreement.
- The job is a continuation of ordinary full-time work with little evidence of academic supervision.
Identify everyone in your workforce on Day 1 CPT today. For each one, get written confirmation from the school that their specific program still qualifies under the stricter standard. Where it does not, put together a transition plan now, moving the employee onto OPT, STEM OPT, the H-1B lottery, or another visa category, rather than waiting for the school to revoke authorization.
What changed for traditional CPT internships
Universities are already restricting CPT approvals for Fall 2026, even for internships that previously qualified because the student enrolled in a credit-bearing course. Academic credit alone may no longer be enough for schools to authorize CPT. The school now generally has to confirm that practical training is part of the required curriculum, not an elective.
Michigan, Boston University, George Mason, Rochester, Colorado Boulder, UC San Diego, and San Diego State have all announced pauses or narrower CPT policies this fall.
How your recruiters should handle CPT candidates now
Do not withdraw from international-student recruiting. Add a verification step before confirming any start date. For every candidate relying on CPT, have the candidate get written confirmation from the school covering:
- Whether practical training is mandatory for every student in the degree program.
- Whether the school is currently processing this category of CPT.
- Whether the school requires an employer-school cooperative agreement.
- Whether the proposed position qualifies.
- When the school expects to issue the CPT-authorized Form I-20.
A candidate should not begin working until the school issues the Form I-20 authorizing that employer, position, location, and period. Make offer letters contingent on valid work authorization, and give hiring managers a backup staffing plan for while CPT is pending.
What a school partnership means for you
Some schools now require a cooperative agreement before authorizing CPT. In practice, that means documenting the internship as a structured training experience. The school may ask you to confirm:
- The position, location, dates, and hours.
- The relationship between the work, the learning objectives, and the student's academic major.
- The manager responsible for supervision and performance evaluation.
- How you will communicate any change or an early termination to the school.
Signing this agreement does not make you a financial sponsor or require you to hire other students, but schools use different forms and terms, so route it through legal or procurement review before signing and build in extra time for approval.
What is staying the same for OPT and STEM OPT
The CPT guidance does not eliminate or restrict OPT. An employee with a valid OPT or STEM OPT EAD can keep working under the terms of that authorization, and you should continue normal monitoring of the EAD expiration date, unemployment limits, degree relationship, and required reporting. STEM OPT employers still need to use E-Verify and follow the employee's Form I-983 training plan.
A broader practical-training rule is expected in proposed form around February 2027, with no text published yet. You may consider continuing to hire candidates with valid OPT and STEM OPT authorization, and start planning now for their next status transition, most often into the H-1B lottery.
How the F-1 visa status expiration change affects you
Beginning September 15, F-1 students stop having an open-ended authorized stay tied only to maintaining their status, and start getting a fixed admission period with a hard expiration date. For you, the operational change is straightforward: an F-1 employee may now have a fixed I-94 expiration date that needs tracking alongside the EAD and Form I-20.
A student who needs more time for a degree, OPT, or STEM OPT may need to request an extension of F-1 stay. That filing belongs to the employee, but a missed deadline can eventually interrupt their employment with you. The employees who need your closest attention are those approaching a transition:
- Academic program to OPT.
- OPT to STEM OPT.
- OPT or STEM OPT to H-1B.
- Starting a new degree program.
- International travel followed by reentry in F-1 status.
Employees currently on valid OPT or STEM OPT are not losing authorization on September 15 — the rule includes transition protection for anyone already maintaining F-1 status. Travel after September 15 does convert that employee to the new fixed-date system with a new I-94, so ask for updated records after any international travel.
WayLit's HR Guide to the F-1 Status Expiration Rule covers the tracking and communication workflow in more detail. That guide was originally published before DHS released the final rule. The rule is now final and scheduled to take effect September 15, 2026, and its transition provisions are now available.
The proposed $103,265 H-1B fee
DHS has proposed an additional $103,265 fee on every H-1B petition filed after an employee wins a spot in the H-1B lottery, including the 20,000 lottery slots set aside for candidates with a U.S. master's degree or higher.
It is not being collected today, and it could change during rulemaking or never become final. If it is finalized in time for a future lottery cycle, you would need to decide whether a selected registration still justifies the petition cost.
WayLit's practical guide to the proposed $103,265 H-1B fee covers the proposal and budgeting scenarios in more depth.
What leadership needs to hear
Leadership should understand two separate risks:
A future lottery cycle could carry an additional $103,265 fee if the proposal becomes final.
Employees who are not selected in the lottery may have fewer fallback options now that Day 1 CPT is less reliable.
None of this justifies automatically excluding international graduates. Before recruiting begins, decide which roles justify repeated H-1B attempts, whether the company can employ someone from another country if their U.S. work authorization ends, and which positions may work through a lottery-exempt or non-H-1B strategy instead.
A STEM-eligible employee can work under OPT and the STEM OPT extension for up to three years total (12 months of OPT plus a 24-month STEM extension, at an E-Verify employer) before needing H-1B sponsorship. Even if the proposed fee raises the cost of a future H-1B petition, you are not forced into an immediate sponsorship decision for any employee who still has OPT or STEM OPT time left. Non-STEM degrees only carry the standard 12-month OPT period, so confirm each employee's degree eligibility before counting on the longer runway.
What to tell F-1 employees worried about next year's H-1B lottery
Your OPT and STEM OPT employees already know about the $103,265 fee proposal, and the ones entering the lottery for the first time next year are likely asking whether it changes your willingness to sponsor them. Address it directly instead of leaving them to guess. A useful conversation would cover:
- The fee is proposed only. It is not being collected today. Tell the employee whether the proposal has changed the company's current sponsorship plans. If leadership has not decided, say that directly and give the employee a date by which the company expects to communicate its policy.
- Confirm whether the company intends to register the employee in the next lottery cycle regardless of the proposal's status at that time. Do not promise the company will or will not pay the fee if it becomes final, since that depends on the actual cost once the rule is finalized.
- Give a realistic timeline covering the comment period, a possible final rule, and the next lottery registration window, and name a single point of contact for the employee's questions.
What to tell your recruiters
Recruiters need a short, usable policy they can apply case by case. Give them these directions:
- Continue recruiting candidates with valid OPT, STEM OPT, H-1B, and other work authorization.
- Route every CPT-dependent offer through an immigration review before confirming the start date.
- Do not promise that enrolling in a Day 1 CPT program will preserve employment.
- Track the employee's applicable Form I-94, EAD, Form I-20, and petition expiration dates. Do not use the visa stamp expiration date as a U.S. employment-authorization deadline.
- Do not ask candidates for specific I-9 documents or make decisions based on nationality.
- Escalate candidates who will need the H-1B lottery within the next 12 to 24 months, and explain that sponsorship depends on eligibility, company policy, and the lottery outcome rather than a promised wage level or selection probability.
Where the plan to eliminate H-4 work permits stands
DHS intends to propose eliminating H-4 work permits for spouses whose H-1B spouse has an approved green card petition or has extended H-1B status beyond the standard six years, but nothing has changed yet. DHS has not published a proposed rule, and the official regulatory agenda entry lists the timeline only as "to be determined." It is a statement of intent, not an enforceable rule, and it does not cancel anyone's current EAD.
What to do about H-4 work permits right now
Do not suspend or terminate an employee because of this announcement. Instead:
- Identify employees working under a category C26 EAD and keep relying on an unexpired EAD under normal Form I-9 rules.
- Track the printed expiration date and encourage eligible employees to file renewals as early as permitted.
- Prepare a contingency plan in case an employee's authorization expires before a renewal is approved, and avoid promising that current holders will be protected under a future rule.
A separate rule already ended automatic EAD extensions for many renewal applications filed on or after October 30, 2025, including H-4 EAD renewals. That existing processing-gap risk is more immediate today than the new regulatory-agenda announcement. See WayLit's guide to the end of automatic EAD extensions for the current rule.
The proposed removal can also become a retention issue even when the H-4 spouse does not work for you, since an H-1B employee may reconsider a U.S. assignment if their spouse expects to lose the ability to work.
Who does not face an immediate work-authorization problem
The volume of immigration news can lead employees and managers to assume every foreign national is affected. Most are not.
| Employee population | Affected now? | Why |
|---|---|---|
| Valid OPT or STEM OPT EAD | No | The CPT restriction does not apply. Continue employment and normal tracking, and prepare for the next status transition |
| Currently authorized CPT | No automatic change | No automatic cancellation, but confirm the school still recognizes the authorization |
| H-1B employee already counted against the lottery | No | No new lottery requirement. Normal extensions, amendments, and transfers continue |
| Lottery-exempt H-1B employee | No | No lottery involved, and the proposed $103,265 fee excludes lottery-exempt petitions as currently drafted |
| L-1, O-1, TN, E-3, or lawful permanent resident | No | No direct change from the CPT, OPT, H-1B lottery, or H-4 announcements |
| H-4 spouse with a valid EAD | No | Current EAD remains valid. No removal rule is in effect |
The workforce plan to put in place
Act now
- Review every current and pending CPT placement, and require school confirmation before committing to any CPT start date.
- Flag Day 1 CPT employees for individual review and inventory OPT, STEM OPT, and H-4 EAD expiration dates.
- Brief your F-1 employees on the September 15 tracking change and give recruiters a clear escalation process.
- Model the proposed H-1B fee against your 2027 hiring budget.
Prepare, but do not change employment decisions yet
- The proposed $103,265 H-1B lottery fee.
- The planned elimination of H-4 work-permit eligibility.
- The future CPT and OPT rule expected in proposed form around February 2027.
Everything else, including valid OPT and STEM OPT employment, existing H-1B, L-1, O-1, TN, and E-3 employment, lottery-exempt H-1B hiring, and employment based on an unexpired H-4 EAD, continues without any change.
How WayLit can help
Tracking CPT school policies, F-1 admission and expiration dates, H-1B lottery timing, and H-4 EAD renewals at the same time is a lot to hold in spreadsheets across five different visa categories. WayLit connects you with experienced immigration attorneys and practitioners who can confirm a specific employee's situation, and gives your team one dashboard that surfaces every upcoming expiration, filing deadline, and status transition before it becomes a problem.
Frequently asked questions
No. The regulation allowing immediate CPT in a qualifying graduate program still exists. What changed is how strictly schools are applying the requirement that practical training be mandatory for every student in the program, which has made the common Day 1 CPT model much less reliable.
There is no effective date because there is no proposed rule yet. DHS has only listed its intent on a long-term regulatory agenda. Current H-4 EAD holders keep their work authorization until it expires, and any renewal should still be filed as early as permitted.
- Boston University ISSO, Additional SEVP Guidance Further Restricts CPT Eligibility
- University of Michigan International Center, Updated Guidance for Curricular Practical Training
- Federal Register, Establishing a Fixed Time Period of Admission and an Extension of Stay Procedure for Nonimmigrant Students (Document 2026-14439)
- Federal Register, Fee for Certain H-1B Petitions (DHS proposed rule, Document 2026-17324)
- Unified Agenda, Removing H-4 Dependent Spouses From the Classes of Noncitizens Eligible for Employment Authorization (RIN 1615-AD14)
- Unified Agenda, Practical Training (RIN 1653-AA97)
- Federal Register, Removal of the Automatic Extension of Employment Authorization Documents
- USCIS, H-1B Cap Season
- USCIS, Optional Practical Training Extension for STEM Students
This article is for informational purposes only and does not constitute legal advice. Consult qualified immigration counsel before making decisions about your sponsored workforce.
Get actionable insights for workforce planning. Delivered once a week.
.svg)
