A federal appeals court in Boston last week refused to bring back the $100,000 payment the government wanted on every H-1B petition. This is temporary—the case is still being fought, and the final answer hasn’t come yet. Here’s what you need to know today and what to watch for as the litigation continues.
What changed
On July 24, 2026, the United States Court of Appeals for the First Circuit denied the government’s motion to stay a district court ruling that had already wiped the payment requirement off the books. The First Circuit’s three-judge panel found that the administration was unlikely to succeed on appeal.
On June 8, 2026, the U.S. District Court for the District of Massachusetts had agreed with the plaintiffs on both grounds and vacated the fee policy in its entirety. The district court held that the $100,000 payment requirement amounts to a tax, not a penalty—a distinction that matters because taxes are controlled by Congress, not the President.
The case was brought by twenty states challenging the government’s attempt to require employers to pay $100,000 for certain new H-1B petitions.
Why it matters
USCIS is barred from assessing or collecting the $100,000 charge on H-1B petitions going forward. You no longer budget that cost into the filing fee for H-1B cases today.
However, this is an interim ruling, not a final judgment. The government’s underlying appeal remains pending, and further proceedings (including possible Supreme Court review) could still change the outcome. The Supreme Court involvement is not speculative—this issue likely will reach the high court eventually.
The scope matters too. The $100,000 fee originated with a September 2025 Presidential Proclamation directed at new H-1B petitions involving beneficiaries outside the United States, and was intended to apply at the time of filing for petitions subject to consular processing. If you were filing for employees already in the U.S. (e.g., a cap-exempt extension or a change of employer), the fee never applied to you.
Way forward
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File H-1B petitions normally today. File H-1B petitions normally, paying the standard fees (approximately $2,000–$5,000 per petition) rather than the proposed $100,000.
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Keep meticulous records. Note your filing dates and receipts carefully, in case the rules shift again. If the government ultimately prevails on appeal, you may need documentation of when you filed.
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Monitor the appeal. This is not the end of the case. The government’s appeal on the merits is still pending, and an appellate court that refuses to pause an order today can still decide the underlying legal question later. Subscribe to case updates or check the First Circuit’s docket periodically.
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Review your prior decisions. If you or your clients declined H-1B sponsorships or delayed filings because of the proposed fee, reconsider those cases now in light of the current cost structure.
Disclaimer
This article is published for general informational purposes and does not constitute legal advice. Fola Form is a software company, not a law firm. You should consult a licensed immigration attorney for advice on your specific case or filing strategy. Policy can change without notice, and this ruling may be reversed or superseded on appeal. Always verify current requirements against the primary source linked above before filing.