A second U.S. federal judge has blocked the implementation of the controversial H-1B $100000 fee for new H-1B workers, creating another major legal setback for the administration’s effort to impose a dramatically higher cost on certain H-1B visa cases.
On September 30, 2026, U.S. District Judge Haywood Gilliam in Oakland, California, ruled that U.S. Citizenship and Immigration Services (USCIS) and the U.S. Department of State had not followed the required rule-making procedures before implementing the fee. The decision came after another federal court in Boston had already blocked the measure in June. (Reuters)
The H-1B $100000 fee was introduced in 2025 as part of a presidential proclamation affecting certain new H-1B workers entering the United States. The administration has since extended the restriction for another 12 months, through September 21, 2027. (The White House)
However, the latest ruling does not necessarily end the legal dispute permanently. Several lawsuits concerning the fee remain active, and the Department of Homeland Security has separately moved toward establishing a permanent fee of approximately $103,000.
What Is the H-1B $100000 Fee?
The H-1B $100000 fee is a payment requirement introduced under a September 2025 presidential proclamation concerning certain H-1B workers.
The original proclamation restricted the entry of certain H-1B specialty-occupation workers unless their petitions were accompanied or supplemented by a $100,000 payment, subject to specified exceptions. USCIS subsequently issued guidance explaining that the measure applied prospectively to certain petitions filed after September 21, 2025. (The White House)
The White House subsequently extended the measure in September 2026 for another 12 months. The renewed proclamation states that the restriction will remain in effect until September 21, 2027, unless it is extended again. (The White House)
The administration has argued that the measure is intended to address what it describes as abuse of the H-1B program, including concerns about lower-paid foreign labor and displacement of U.S. workers. Those are the administration’s stated policy justifications. (The White House)
Second Federal Judge Blocks the $100000 H-1B Requirement
The latest development came from U.S. District Judge Haywood Gilliam in the Northern District of California.
According to Reuters, Gilliam ruled that USCIS and the State Department had failed to follow required rule-making procedures before implementing the H-1B $100,000 fee. The judge granted a coalition of unions, employers and nonprofit organizations’ request to prevent the agencies from implementing the fee while their lawsuit proceeds. (Reuters)
This is significant because it represents the second federal court to block the measure.
The first major ruling came from a federal judge in Boston in June 2026 in a case brought by 20 states. Reuters reported that a federal appeals court subsequently declined in July to pause that decision. (Reuters)
The two cases are separate, meaning the California ruling does not simply replace the earlier litigation. Instead, the latest decision adds another judicial challenge to the government’s authority and process for implementing the fee.
Why Was the H-1B $100000 Fee Challenged?
The central legal dispute is not simply about whether $100,000 is expensive.
The lawsuits also challenge the government’s authority and procedure for imposing the payment requirement.
Reuters reported that the lawsuits argue over whether the president had the authority to impose such a substantial H-1B payment requirement unilaterally. The latest California ruling also focused on the government’s failure to follow required rule-making procedures. (Reuters)
That distinction is important.
A court could examine:
- Whether the executive branch had legal authority to impose the requirement.
- Whether federal agencies followed the procedures required by law.
- Whether the payment was properly established as a fee or implemented as an entry restriction.
- Whether the administration’s actions exceeded authority granted under immigration law.
The government’s position is that the presidential proclamation was authorized under existing immigration statutes.
The September 2026 proclamation cites sections 212(f) and 215(a) of the Immigration and Nationality Act as the legal authority for restricting entry of certain H-1B workers. (The White House)
The Fee Is Much Higher Than Traditional H-1B Costs
The scale of the H-1B $100000 fee is one reason the policy has attracted considerable attention.
Historically, employers filing H-1B petitions have faced multiple government charges, with the overall amount varying according to the type of petition, employer and circumstances. Reuters reported that traditional H-1B fees were generally in the range of roughly $2,000 to $5,000 depending on the circumstances. (Reuters)
The new payment requirement is therefore substantially larger than ordinary H-1B filing costs.
For employers that recruit foreign professionals, particularly companies that routinely sponsor H-1B workers, a six-figure additional payment can materially change the economics of hiring through the program.
This is particularly relevant to technology companies and other industries that rely on H-1B workers in specialty occupations.
What Does the Court Ruling Mean for H-1B Employers?
For employers, the immediate importance of the ruling is that the H-1B $100,000 fee is facing another federal court block while litigation continues.
However, employers should not interpret the ruling as meaning that every H-1B-related fee has disappeared.
The court dispute specifically concerns the $100,000 requirement. Other standard H-1B filing and processing fees can continue to apply according to the applicable rules.
Employers considering H-1B sponsorship should therefore continue reviewing the latest USCIS requirements for the particular petition rather than assuming that all H-1B government charges have been suspended.
The legal situation may also change as courts consider appeals and additional lawsuits.
What Does This Mean for Foreign Workers?
The impact on individual foreign workers depends heavily on their specific immigration situation.
The original USCIS guidance stated that the 2025 proclamation applied prospectively and did not apply to beneficiaries of petitions filed before the effective date, beneficiaries of currently approved petitions, or individuals holding validly issued H-1B visas. (USCIS)
That means the H-1B $100000 fee should not automatically be interpreted as a charge affecting every existing H-1B worker.
The latest court decision is primarily about the government’s ability to impose the disputed payment requirement on affected new H-1B cases.
Workers and employers should distinguish between:
- Existing H-1B visa holders.
- Previously approved H-1B petitions.
- New H-1B petitions.
- Workers outside the United States seeking admission.
- Cases covered by any applicable exceptions.
The exact consequences can depend on the petition, timing and current court orders.
Trump Administration Extends the H-1B Restriction
The legal battle is occurring alongside a separate policy decision by the administration.
On September 18, 2026, the White House issued a new proclamation extending the H-1B entry restriction for another year. The proclamation states that the restriction will remain in effect until September 21, 2027. (The White House)
The White House said that the original policy had resulted in more than 700 petitions being accompanied by the $100,000 payment since its implementation. It also cited changes in H-1B registration patterns and claimed that registrations from major IT outsourcing firms had fallen substantially. (The White House)
These figures and explanations represent the administration’s assessment of the policy’s effects.
At the same time, the continuation of the policy does not resolve the separate legal question of whether the H-1B $100000 fee was lawfully imposed.
DHS Is Also Pursuing a Separate Permanent Fee
Another important development is that the current litigation is not the only issue surrounding the six-figure H-1B charge.
According to Reuters, the Department of Homeland Security moved in August toward adopting a permanent fee of approximately $103,000. That proposal would present different legal questions from the lawsuits challenging the existing H-1B $100000 fee. (Reuters)
This distinction could become important going forward.
Even if the existing fee is ultimately blocked, a separately established fee through a formal regulatory process could face a different legal analysis.
The permanent proposal would therefore need to be evaluated separately from the current court orders.
H-1B Program Changes Go Beyond the $100,000 Payment
The H-1B $100000 fee is only one part of the administration’s broader H-1B policy changes.
The White House has also introduced measures concerning program integrity, employer scrutiny and the selection of H-1B workers.
A September 18, 2026 executive order directed federal agencies to coordinate when processing H-1B petitions, labor condition applications and visas. It also instructed agencies to consider whether sponsoring employers had recently conducted layoffs or planned layoffs affecting similarly situated U.S. workers. (The White House)
The administration has also previously introduced a weighted H-1B selection system that prioritizes higher-skilled and higher-paid workers, according to the September 2026 proclamation. (The White House)
Consequently, employers and foreign professionals should not view the court case over the H-1B $100,000 fee as the only current development affecting the H-1B system.
What Happens Next in the H-1B Fee Lawsuits?
The legal process is expected to continue.
The latest California decision does not represent a final nationwide resolution of every legal question surrounding the H-1B $100000 fee.
Several parties are involved in separate litigation, including employer groups, unions, nonprofit organizations and the U.S. Chamber of Commerce. Reuters reported that the Chamber has filed its own lawsuit and is appealing after a judge rejected its claims that the president lacked authority to impose the fee. (Reuters)
The eventual outcome could depend on appeals and potentially further federal court proceedings.
For employers and foreign workers, this means the rules surrounding new H-1B cases can remain subject to change.
H-1B $100000 Fee: What Applicants and Employers Should Know
| Issue | Current situation |
|---|---|
| Disputed payment | $100,000 |
| Latest development | Second federal judge blocked implementation |
| Latest ruling | September 30, 2026 |
| Judge | U.S. District Judge Haywood Gilliam |
| Location | Oakland, California |
| Earlier court action | Boston federal judge blocked the measure in June |
| Administration’s position | Fee is intended to address alleged H-1B abuse |
| Current litigation | Multiple lawsuits remain active |
| Separate proposal | DHS has pursued a permanent fee of approximately $103,000 |
| Extended restriction | September 21, 2026 to September 21, 2027, under the renewed proclamation |
The H-1B $100,000 fee therefore remains an evolving legal issue rather than a permanently settled immigration rule.
FAQs : H-1B $100000 Fee
Is the $100,000 H-1B fee completely cancelled?
No. The latest federal court ruling blocks implementation while the relevant litigation proceeds. It does not necessarily constitute a permanent nationwide resolution of the underlying legal dispute. (Reuters)
Why did the judge block the H-1B fee?
According to Reuters, Judge Haywood Gilliam found that USCIS and the State Department had not followed required rule-making procedures before implementing the fee. (Reuters)
Was this the first court to block the fee?
No. A federal judge in Boston had already blocked the measure in June 2026 in a separate lawsuit brought by 20 states. Reuters reported that an appeals court declined to pause that decision in July. (Reuters)
Does the ruling affect existing H-1B visa holders?
The original USCIS guidance said the 2025 proclamation did not apply to individuals who were beneficiaries of petitions filed before its effective date, beneficiaries of currently approved petitions, or holders of validly issued H-1B visas. (USCIS)
Is the $100,000 payment the only H-1B fee?
No. H-1B cases can involve other government filing and processing fees depending on the petition and circumstances. The court dispute specifically concerns the additional $100,000 requirement.
Could another H-1B fee replace the blocked payment?
Potentially, but that would depend on future regulatory and legal developments. Reuters reported that DHS has separately moved toward a permanent fee of approximately $103,000, which could face its own legal challenges. (Reuters)
Final Takeaway On H-1B $100000 Fee
The latest ruling marks another significant development in the legal fight over the H-1B $100000 fee.
A second federal judge has blocked the disputed payment requirement after finding that federal agencies did not follow required rule-making procedures. However, the ruling does not mean that the broader H-1B policy changes have disappeared.
The administration has extended the underlying H-1B entry restriction through September 2027, while separate litigation continues over the government’s authority to impose the payment. At the same time, DHS is pursuing a separate permanent fee proposal of approximately $103,000. (The White House)
For H-1B employers and foreign professionals, the key issue now is how the courts and federal agencies handle the next stages of litigation and rule-making. Anyone preparing a new H-1B case should check the latest USCIS and State Department requirements before filing because the legal position remains subject to change.
Source : Reuters
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