What You Missed In Immigration: Credit Checks, Vanishing Grace Periods & the CPT Crackdown
USCIS Can Now Pull Credit Reports on Green Card Sponsors
Starting August 31, USCIS gained the authority to request consumer credit reports from anyone sponsoring a green card applicant under the latest Form I-864. The agency hasn't said what credit score (if any) it considers acceptable, and there's no public guidance on how debt levels, late payments, or bankruptcies will factor into sponsorship decisions. Sponsors with credit freezes may be asked to lift them temporarily to avoid processing delays. The new 08/24/26 edition of the form is now required.
The PERM Takeaway: For employment-based green cards, the I-864 Affidavit of Support typically involves the employer as the sponsor. That means USCIS could now request a credit report on the sponsoring company or, in some cases, an individual petitioner. The lack of clear standards is the real concern here. Without published thresholds, employers have no way to know in advance whether their financial profile will raise flags. Companies sponsoring workers through the PERM process should review their credit standing proactively and ensure their financials present well on paper. If your company has had recent credit issues, liens, or financial restructuring, flag that to counsel before filing. Getting caught off guard by a credit inquiry mid-adjudication is the kind of delay that compounds in a system already backlogged to 18.6 months.
DHS Moves Closer to Killing the 60-Day Grace Period for H-1B Workers
A DHS proposal to eliminate the 60-day grace period for H-1B and other visa holders has cleared White House review, which means publication could come soon. The grace period currently gives workers up to 60 days after losing a job to find a new employer, transfer their visa, or change status. Without it, a laid-off H-1B worker would face immediate loss of status. The current rules remain in effect for now, and full details about exceptions or implementation haven't been released yet. But the proposal is no longer theoretical. It's moving through the pipeline.
The PERM Takeaway: The 60-day grace period is the safety valve that keeps H-1B workers in the country after an unexpected job loss. Eliminate it, and every layoff becomes an immediate immigration crisis for affected employees. For PERM employers, this has direct retention implications. Sponsored workers who know the grace period could disappear are more anxious about job security, more likely to explore opportunities in other countries, and less willing to commit to multi-year sponsorship timelines. Employers should be communicating proactively with their H-1B workforce about the status of this proposal and reinforcing their commitment to the sponsorship process. On a practical level, companies should also think about what happens if they need to conduct layoffs. Without a grace period, cutting a sponsored employee means effectively deporting them. That's a liability calculation HR departments need to be running now, not after the rule is published.
CPT Enforcement Tightens, Internship Pipeline Under Threat
The Student and Exchange Visitor Program (SEVP) is cracking down on Curricular Practical Training, the program that allows F-1 students to work off-campus through qualifying internships and co-ops. New guidance takes a harder line on what qualifies as an "integral part" of a student's curriculum, and the impact is already visible. UC Berkeley and UC Davis have temporarily suspended some course-credit CPT programs. Other universities are reviewing their policies. For employers who hire international students through CPT internships, the available talent pool could shrink before the fall recruiting season.
The PERM Takeaway: CPT feeds OPT. OPT feeds H-1B. H-1B feeds PERM. When you tighten enforcement at the internship stage, the entire downstream pipeline contracts. Employers who use CPT internships as a way to identify and evaluate future hires before committing to sponsorship are losing one of their most valuable recruiting tools. If your company has historically used CPT interns as a trial run before extending full-time offers and starting the H-1B and PERM process, you need to check whether the programs you've relied on are still operating. Reach out to your university partners and ask directly whether their CPT authorization process has changed. And if you're losing access to CPT candidates, consider whether other early-engagement strategies, like sponsoring capstone projects or partnering with career services, can fill the gap.
Judge Blocks Latest Birthright Citizenship Restriction
A federal judge has blocked the administration's most recent executive order attempting to limit birthright citizenship, preventing agencies from denying citizenship to children covered by the policy. The August order tried a narrower approach than the one the Supreme Court struck down earlier this year, targeting specific cases involving parents who are not citizens or permanent residents. The court wasn't persuaded. The administration can continue preparing implementation guidance while the case moves forward, but enforcement is halted.
The PERM Takeaway: This is the third time a court has intervened on birthright citizenship in 2026. The legal pattern is clear, but the political persistence means the issue won't disappear from the headlines anytime soon. For employers, the practical reality hasn't changed: U.S.-born children of sponsored workers remain citizens. But the ongoing uncertainty weighs on employee morale and retention. If you have foreign national employees who are watching these headlines with anxiety about their families, a brief, clear communication from HR confirming that the law has not changed can go a long way. Stability in the workplace matters most when everything outside it feels unstable.
Stay sharp, stay compliant, and we'll see you next week.
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