The legal battle over the controversial $100,000 H-1B fee continues, leaving many employers uncertain about whether they must pay this significant additional cost when sponsoring H-1B workers who will obtain their visas abroad.

Below is a summary of the recent litigation and what employers need to know today.

Background

On September 19, 2025, President Trump issued a Presidential Proclamation creating a new $100,000 payment requirement for certain new H-1B petitions. The rule generally applies to new H-1B beneficiaries who will obtain H-1B status through consular processing outside the United States. Existing H-1B workers, extensions, amendments, and many change-of-status cases filed for individuals already in the United States are generally exempt. USCIS and the Department of State subsequently issued guidance implementing the new requirement.

The fee immediately drew significant criticism from employers, universities, business organizations, and state governments, many of whom argued that the Executive Branch lacked authority to impose such a substantial new payment without Congressional approval.

Recent Litigation

Several lawsuits challenging the fee were filed across the country, including cases brought by the U.S. Chamber of Commerce, universities, and a coalition of states.

The most significant recent development occurred on June 8, 2026, when the U.S. District Court for the District of Massachusetts ruled in State of California, et al. v. Mullin that the $100,000 fee was unlawful. The court held that the fee functioned as an unauthorized tax that had not been approved by Congress and further found that the agencies implementing the policy violated the Administrative Procedure Act. The court vacated the rule nationwide.

However, the government quickly appealed the decision to the U.S. Court of Appeals for the First Circuit and sought emergency relief. On June 12, 2026, the district court temporarily stayed its own order while the appellate court considers the government's request. As a result, the vacatur is currently paused pending further appellate proceedings.

What Is the Rule Today?

As of June 30, 2026, employers should assume that the $100,000 fee remains in effect and payable in cases that trigger the requirement. Although the district court found the fee unlawful, that decision is currently stayed while the appeal proceeds. Until the courts issue further orders, USCIS and the Department of State retain authority to continue collecting the fee.

Employers filing new H-1B petitions for beneficiaries who will process their visas abroad should carefully evaluate whether the fee applies and should plan accordingly.

Practical Considerations for Employers

• Consider whether the beneficiary may qualify for a change of status within the United States, which generally avoids the $100,000 payment requirement.
• Budget for the possibility that the fee will remain in place for the foreseeable future.
• Monitor ongoing litigation closely, as further court decisions could significantly change the current landscape.
• Consult experienced immigration counsel before filing any H-1B petition involving consular processing.

Our office continues to monitor developments closely and will provide updates as additional court decisions are issued.

If you have questions about whether the $100,000 fee applies to a specific H-1B case, please contact our office to discuss your options.

‍