Employers and H-1B workers have spent most of 2026 whiplashed by a $100,000 payment requirement that has been struck down, revived, and blocked again. As of early August, the fee is not in effect, and USCIS is not collecting it.
What Happened
A federal district court in Massachusetts found the $100,000 payment requirement on certain new H-1B petitions unlawful on June 8, 2026, vacating the policy that implemented it. Days later the same court paused its own ruling, which temporarily allowed USCIS to keep collecting while the government appealed.
On July 24, the U.S. Court of Appeals for the First Circuit denied the government’s motion to stay the district court judgment. According to the National Law Review, the appeals court found the government had not made a strong showing that it was likely to win on the merits. That lifted the administrative stay that had reinstated the fee on June 12.
The practical effect, confirmed in USCIS guidance reported in early August: the vacatur stands while the appeal proceeds, and the agency is prohibited from collecting the fee.
Why the Fee Was Struck Down
The requirement stemmed from a presidential proclamation rather than from legislation. The district court concluded it functioned as an unauthorized tax and was arbitrary and capricious, a challenge brought with the support of 20 state attorneys general.
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That distinction matters for predicting what comes next. Courts have generally been more receptive to challenges arguing the executive branch created a revenue measure Congress never authorized than to challenges over how the executive branch exercises discretion it clearly has.
Who Is Affected
The requirement applied to certain new H-1B petitions, not to extensions or amendments for workers already in H-1B status. Employers who paid the fee during the windows when it was enforced are in an unresolved position; the litigation has not produced a refund mechanism, and firms in that situation should be tracking the docket with counsel.
The timing also intersects with the cap cycle. USCIS announced in July that it had received enough petitions to reach the fiscal year 2027 H-1B cap of 85,000, including the advanced-degree exemption. Approved cap-subject workers may begin employment no earlier than October 1, 2026.
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What This Means for You
If you are an H-1B worker, this litigation is about who pays, not about your status. Your approval, your I-94, and your work authorization are unaffected by the fee dispute.
If you are an employer, do not budget as though the fee is permanently gone. This is an interim ruling on a stay motion, not a final decision on the merits. The First Circuit could still rule for the government on appeal, and the administration could attempt a new fee through rulemaking.
If your company paid the fee during an enforcement window, preserve receipts and filing records now. Any future refund process will require them.
Verify current fee requirements on uscis.gov before filing rather than relying on any guidance, including this article, that predates your filing date.
This article is for general information only and is not legal advice.
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