The $100,000 H-1B Fee in October 2026: Who It Applied To and Why Courts Blocked It

As of October 11, 2026, employers do not have to pay the $100,000 H-1B payment. Two federal courts have blocked it: a Massachusetts court vacated the implementing guidance in June 2026, and a California court struck down the agency policies, including a September 2026 extension, on September 30, 2026. USCIS says it is complying while the government considers next steps, and appeals are pending.

Key points

• The September 19, 2025 proclamation required $100,000 for certain new H-1B petitions filed on or after September 21, 2025 for workers outside the US.
• June 8, 2026: D. Mass. vacated the implementing guidance (California v. Mullin). July 24, 2026: the First Circuit denied a stay.
• September 18, 2026: a new proclamation extended the payment to September 21, 2027. September 30, 2026: N.D. Cal. struck down the agency policies, including that extension (Global Nurse Force v. Trump).
• Status: BLOCKED as of October 11, 2026, but DHS says it will collect if the orders are lifted.
• A separate $103,265 fee on cap petitions is only proposed.

What the proclamation required

The proclamation, “Restriction on Entry of Certain Nonimmigrant Workers,” signed September 19, 2025, required employers to pay $100,000 through pay.gov before filing certain H-1B petitions at or after 12:01 a.m. Eastern on September 21, 2025. Petitions without proof of payment, or an exception from the Secretary of Homeland Security, were to be denied (USCIS H-1B page).

Who it applied to, and who was exempt

USCIS guidance issued October 20, 2025 narrowed the scope:

Situation	Payment required under the 2025 guidance?
New H-1B petition for a worker outside the US, filed on or after Sept 21, 2025	Yes
Change of status inside the US (for example, F-1 to H-1B) that is approved	No
Extension or amendment for a worker already in H-1B status in the US	No
Worker who already holds a valid H-1B visa	No
Petitions filed before Sept 21, 2025	No
National interest exception	Only in “extraordinarily rare circumstances”

The September 2026 renewal proclamation stated that employers paid the fee on about 700 petitions in the first year, according to reporting on the proclamation.

The court rulings, in order

Date	Event
June 8, 2026	US District Court for the District of Massachusetts vacates the agency guidance implementing the payment in a suit by 20 states led by California (State of California v. Mullin, 1:25-cv-13829). The order is briefly stayed administratively while the government seeks a stay.
July 24, 2026	US Court of Appeals for the First Circuit denies the government’s motion for a stay pending appeal. The vacatur takes effect.
Sept 18, 2026	New proclamation extends the payment requirement through September 21, 2027.
Sept 30, 2026	US District Court for the Northern District of California (Judge Haywood Gilliam Jr.) strikes down the agency policies implementing the fee, including the 2026 extension, in Global Nurse Force v. Trump. The court found the policies arbitrary and capricious and that they required public notice and comment.
Oct 2026	USCIS continues to comply; government appeals pending.

Why the courts ruled against it

• The Massachusetts court found the payment worked like a tax that Congress never authorized, and that the government was unlikely to win on the merits.
• The California court ruled that the agencies did not consider alternatives or employers’ reliance on existing rules, and that the policies were legislative rules adopted without the public comment the Administrative Procedure Act requires.

What USCIS says now

The USCIS H-1B page (last updated September 21, 2026) says DHS “strongly disagrees” with the June order, “will comply with the court’s order while DHS considers next steps,” and still plans to collect the payment if the order is lifted. The October 7, 2026 USCIS fee schedule repeats this.

The separate $103,265 proposal

Do not confuse the proclamation with a DHS proposed rule published August 25, 2026 (“Fee for Certain H-1B Petitions”):

	$100,000 proclamation payment	$103,265 proposed fee
Legal basis	Presidential proclamation	Proposed USCIS fee regulation (cost recovery under the immigration fee statute)
Who it covers	New petitions for workers abroad	All cap-subject petitions, including the master’s cap
Cap-exempt petitions	Scope defined by petition type and worker location, not cap status	Exempt
Status (Oct 11, 2026)	Blocked by courts	Proposed only; comments closed Sept 24, 2026

The proposal would not apply until DHS publishes a final rule, which would likely face its own legal challenges. Because it uses the notice-and-comment process, it is designed to avoid one of the defects courts found in the proclamation policies.

What employers and workers should do now

• Employers filing new petitions: as of October 11, 2026, do not include the $100,000 payment, but check the USCIS H-1B page on the day you file. Court orders can change quickly.
• Workers abroad with approved petitions: you still need a visa interview, generally in your home country, with online presence vetting. See our H-1B visa process guide.
• Planning for FY2028: the wage-weighted lottery, the proposed $103,265 fee and a proposed prevailing wage increase all affect cost and odds. See our guide to the H-1B weighted lottery.
• Considering alternatives: strong candidates may look at the O-1 visa, which has no cap.

Employers who paid the fee and want to know whether they can seek a refund should talk to immigration counsel; we have not seen official USCIS guidance on refunds.

What to do next

1. Bookmark the USCIS H-1B page and check it before every filing.
2. Talk to a licensed immigration attorney about pending or planned petitions.
3. Follow our US hub and updates page; we will update this post as the appeals move forward.