On July 24, 2026, the U.S. Court of Appeals for the First Circuit denied the government’s request to reinstate the $100,000 H-1B fee while its appeal is pending. As a result, the district court’s order invalidating the fee remains in effect, which means that employers are not currently required to pay the additional $100,000 fee to sponsor H-1B foreign workers.
While the litigation is far from over, the First Circuit’s decision comes as a relief for employers that rely on the H-1B program to hire highly skilled professionals.
Background
In September 2025, President Trump issued a proclamation requiring employers to pay a steep $100,000 fee for certain H-1B petitions. The fee was intended to reshape the H-1B program by significantly increasing the cost of employing foreign professionals.
Several states challenged the proclamation, arguing that the President lacked the authority to impose what amounted to a new tax without congressional approval. The plaintiffs also alleged that the agencies implementing the fee violated the Administrative Procedure Act (APA).
On June 8, 2026, Judge Leo T. Sorokin of the U.S. District Court for the District of Massachusetts ruled in favor of the plaintiffs and vacated the policy nationwide. The court concluded that the Executive Branch exceeded its statutory authority because Congress holds sole authority over taxes and immigration filing fees.
The Latest Development
After the district court’s decision, the government appealed to the U.S. Court of Appeals for the First Circuit and sought a stay that would have allowed the $100,000 fee to remain in effect during the appeal.
On July 24, 2026, the First Circuit denied that request and found that the government failed to justify lifting the pause. As a result, the nationwide injunction remains in place.
Key Takeaways for Employers and HR Leaders
For now, the $100,000 H-1B fee is not currently in effect. USCIS cannot reject petitions or demand the additional $100,000 fee while the injunction is in force. Employers may continue filing H-1B petitions under the current fee structure unless further court action changes the legal landscape. The appeal remains pending, meaning the legal status of the fee could change in the coming months.
Looking Ahead
The First Circuit’s recent order addresses only whether the fee should remain in effect during the appeal. It does not resolve whether the fee is ultimately lawful. The case could ultimately be reviewed by the U.S. Supreme Court.
