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Is the $100K H-1B Fee Still in Effect? What You Need to Know Right Now

No. As of late October 2026, U.S. Citizenship and Immigration Services (USCIS) is not collecting the $100,000 H-1B fee. Two federal courts have blocked the policies used to collect it, and USCIS has said it will comply. But the fight isn’t over. Three appeals are pending, and the Department of Homeland Security (DHS) has separately proposed a $103,265 fee for cap-subject petitions. A Chicago, IL Citizenship lawyer can help individuals and employers understand how changing immigration policies and proposed fees may affect their options and next steps.

Key Takeaways

  • The $100,000 fee is not being collected right now. It could come back if an appeals court rules for the government.
  • The $100,000 fee only applied to new H-1B workers outside the U.S.
  • The proposed $103,265 fee is a different rule. It would also reach people already in the U.S., such as F-1 students.
  • A September 2026 executive order on employer layoffs is already in effect.

Few immigration rules have changed as often this year as the $100,000 H-1B fee. It was imposed, struck down, paused, struck down again, extended and blocked again. If you’re confused, you’re not alone. Here’s where things stand today.

Is the $100K H-1B Fee Being Collected Right Now?

No. On July 28, 2026, USCIS confirmed it would comply with the court order and stop collecting the $100,000 fee. It also said that if the order is lifted, DHS still plans to collect the payment.

So the honest answer is: not now, but not gone for good.

Who Did the $100K Fee Apply To?

The fee applied to new H-1B petitions for workers outside the United States, including petitions that asked for consular processing. It did not apply to extensions, or to people changing status inside the U.S.

In practice, very few employers paid it. The September 2026 proclamation that extended the fee said employers paid it for only about 700 petitions in the first year.

What Did the Courts Decide?

The courts are split. Two courts have blocked the fee. One upheld it. Here’s the timeline, newest first.

DateCourtWhat happened
Oct 9, 2026Ninth CircuitThe government appealed the Global Nurse Force ruling
Sept 30, 2026N.D. CaliforniaGlobal Nurse Force v. Trump: the agency policies were vacated and blocked under both the 2025 and 2026 proclamations until proper rulemaking is done
Sept 18, 2026White HouseProclamation 11069 extended the fee to September 21, 2027
July 24, 2026First CircuitDenied the government’s request to pause the Massachusetts ruling in State of California v. Mullin
June 8, 2026D. MassachusettsJudge Sorokin vacated the fee policy, finding it was an unlawful tax
Mar 9, 2026D.C. CircuitArguments heard in the Chamber of Commerce appeal (still undecided)
Dec 23, 2025D.D.C.Chamber of Commerce v. DHS: the fee was upheld

The Massachusetts case was brought by 20 states, including Illinois. The judge found that the $100,000 payment worked like a tax, and only Congress can impose a tax. The First Circuit refused to pause that ruling, finding the government hadn’t made a strong showing that it was likely to win on appeal.

The California case was brought by a nurse staffing company, unions, a church, schools and others. Judge Haywood Gilliam found the agencies never considered alternatives or the impact on employers who rely on H-1B workers. He also found the policies needed public notice and comment before taking effect.

What’s the Difference Between the Proclamation and the Policy?

This is where most of the confusion comes from. There are two layers:

  • The proclamation is the President’s order that created the fee. It’s still on the books, and it was extended in September 2026.
  • The agency policies are the steps DHS and the State Department took to actually collect the fee.

The courts blocked the second layer. The proclamation exists, but the government has no lawful way to collect the money right now.

What Is the $103,265 Fee and When Could It Start?

It’s a separate fee that DHS proposed on August 25, 2026, through formal rulemaking. Here’s how it compares.

$100,000 fee$103,265 fee
StatusBlocked by courtsProposed, not in effect
Created byPresidential proclamationDHS rulemaking
Who it coversNew H-1B workers abroadAll cap-subject petitions, including change of status in the U.S.
Covers F-1 students changing to H-1B?NoYes, as proposed
Covers extensions?NoNo
Covers cap-exempt employers?NoNo

The comment period closed on September 24, 2026. If DHS finalizes it, the fee could apply to cap-subject petitions as early as April 2027. Lawsuits are widely expected, especially since courts have already struck down a similar fee as an unlawful tax.

What Else Changed for H-1B This Fall?

The fee gets the headlines, but these changes may matter more day to day:

  • Layoff executive order (in effect). Executive Order 14431, signed September 18, 2026, tells agencies to consider whether an employer laid off similar U.S. workers in the past year, or plans to. It applies to labor applications, petitions, visas and entry. It doesn’t ban sponsorship after layoffs.
  • Extension fees for H-1B-heavy employers (in effect since September 9, 2026). Employers with 50 or more U.S. employees, where more than half hold H-1B or L-1 status, now pay $4,000 on H-1B extensions too.
  • Proposed end of the 60-day grace period. If finalized, workers would fall out of status the day after a job ends. Comments are due November 10, 2026.
  • Proposed end of deference on extensions. USCIS would no longer start from its prior approval when reviewing an extension. Comments are due November 13, 2026.

We cover the last three in more detail in our L-1 and extensions guide.

What Should Employers and Workers Do Now?

Employers: If you held back petitions because of the fee, talk to counsel about filing now. Keep records of any fees you paid in case refunds become available. Review recent layoffs before filing new H-1B petitions.

Workers abroad: Ask your employer about timing. The window could change if an appeals court rules.

Everyone: Watch the three appeals. We’ll update this page when any of them is decided.

If you paused a petition because of the fee, don’t assume the pause still makes sense. Look at each case on its own timeline, and talk it through with counsel before the March 2027 registration.

Frequently Asked Questions

Is the $100,000 H-1B fee still required in 2026?

No. USCIS stopped collecting it after the First Circuit’s July 24, 2026 order, and a second court blocked it on September 30, 2026.

Does the $100K fee apply to H-1B extensions or transfers?

No. It only applied to new petitions for workers outside the U.S. Extensions and changes of status inside the U.S. were not covered.

Will employers get refunds if they already paid?

No formal refund process has been announced. Employers who paid should keep their records in case the rulings stand and refunds become available.

What is the $103,265 H-1B fee?

It’s a separate fee DHS proposed on August 25, 2026, for every cap-subject H-1B petition. It’s not in effect unless DHS issues a final rule.

Does the $103,265 fee apply to F-1 students changing to H-1B?

As proposed, yes. Unlike the $100,000 fee, it would apply to cap-subject petitions for people already in the U.S.

Can the $100K fee come back?

Yes. Appeals are pending in the First, Ninth and D.C. Circuits. USCIS has said it plans to collect the fee if the court orders are lifted.

How does the layoff executive order affect H-1B petitions?

Agencies must now consider an employer’s layoffs in the past year, and planned layoffs, when reviewing H-1B filings. It’s not an automatic ban, but expect more questions.

Not Sure Where You Stand?

These rules are moving week to week. Dworsky Law Firm in Northbrook helps employers and professionals across the Chicago area and nationwide make filing decisions with the latest information.

Book a free 15-minute consultation to talk through your H-1B situation.

Sources

This article is general information, not legal advice. Immigration rules change often. Talk to an attorney about your situation.

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