H-1B $100,000 fee extended for a year, but two federal courts have made it unenforceable
On Sept. 18 the White House extended the proclamation through Sept. 21, 2027. Federal courts in Massachusetts and Northern California have since set aside the policies used to collect the fee. USCIS and consulates are not collecting it now; the final outcome rests with the appeals courts and possibly the Supreme Court.
Key points
- Not being collected: a Massachusetts federal court vacated the implementing policy on June 8, and the First Circuit refused to pause that ruling on July 24. On Sept. 30, a federal court in Northern California barred enforcement under both the original and the extension proclamations.
- Who it covered: new H-1B petitions filed on or after Sept. 21, 2025, for beneficiaries outside the U.S. or requesting consular notification. Changes of status, extensions and transfers approved inside the U.S. were excluded.
- White House figures: registrations by the largest IT outsourcing firms fell from 24,946 to 2,055; only about 700 people actually paid the fee in the past year.
- Government appeal: on Oct. 9 the government appealed the Northern California ruling to the Ninth Circuit and asked for a stay. The ruling stays in force during the appeal, so the fee still cannot be collected.
- Not settled: a D.C. federal court ruled for the government, and that appeal is still pending. If the circuits split, the Supreme Court may decide.
What happened
On Sept. 19, 2025, the president signed Proclamation 10973. Citing the entry-restriction authority in Section 212(f) of the Immigration and Nationality Act (INA), it required a $100,000 payment for new H-1B petitions for beneficiaries outside the United States or requesting consular notification. USCIS guidance issued that October made clear that petitions approved for a change of status, extension or change of employer inside the U.S. were not covered.
The original proclamation ran for 12 months. On Sept. 18, 2026, the White House signed Proclamation 11069, extending the restriction for another 12 months from Sept. 21, to Sept. 21, 2027, and keeping the national-interest exception. Executive Order 14431, signed the same day, targets H-1B scrutiny of employers with layoffs and is a separate measure.
Three lawsuits, conflicting results
| Court | Plaintiffs | Ruling | Status |
|---|---|---|---|
| U.S. District Court for the District of Columbia | U.S. Chamber of Commerce, Association of American Universities | Dec. 23, 2025: ruled for the government, finding the fee within the president’s authority over entry | On appeal; the D.C. Circuit heard argument in March 2026 and has not ruled |
| U.S. District Court for the District of Massachusetts | 20 states led by California | June 8, 2026: found the payment is a tax the president cannot impose and that it was rolled out without required rulemaking; vacated the implementing policy in its entirety | The First Circuit denied a stay on July 24; USCIS kept collecting during a brief administrative stay before that |
| U.S. District Court for the Northern District of California (Oakland) | Global Nurse Force and others, including a nurse staffing company, unions and a church | Sept. 30, 2026: found the agency policies arbitrary and capricious, and legislative rules that require notice and comment | Vacated and remanded; enforcement under both proclamations barred until notice-and-comment and regulatory flexibility analyses are completed. The government appealed to the Ninth Circuit on Oct. 9 |
Courts review what federal agencies do to carry out a proclamation. The president is not an “agency” under the Administrative Procedure Act, so a court “blocking” the fee means agencies cannot enforce it; the proclamation itself still stands. That is why the White House could extend it while litigation continues. The Oakland ruling reaches the extension because the plaintiffs brought the new proclamation into the same case.
The White House’s numbers
A drop of about 92%. The White House also says requests for consular processing fell nearly 97%.
Source: White House extension proclamation, Sept. 18, 2026 (government figures). Chart by Hibee.
| Item | Value |
|---|---|
| FY2025 season | 24,946 |
| FY2027 season | 2,055 |
In the extension proclamation, the White House said H-1B registrations by the largest IT outsourcing and staffing firms fell from 24,946 for FY2025 to 2,055 for FY2027, a drop of about 92%, and that requests for consular processing fell nearly 97% over the same period. These are the government’s own figures, and the comparison spans other changes as well, including the $215 registration fee, beneficiary-based selection and the weighted lottery, so the drop cannot be attributed to the fee alone.
Source: White House extension proclamation, Sept. 18, 2026. Chart by Hibee.
| Item | Value |
|---|---|
| FY2026 | 45.1% |
| FY2027 | 66.1% |
The same proclamation shows that only about 700 people actually paid the $100,000 in the past year. Court filings show at least one employer waited nearly a year without an answer on a national-interest exception request.
What to watch
A D.C. Circuit ruling in the Chamber case, a First Circuit decision on the merits of the Massachusetts case and any emergency request by the government to the Supreme Court will determine whether the fee can return. A separate variable is DHS’s proposed $103,265 fee rule, published in August: it goes through notice and comment, rests on a different legal basis and applies whether the beneficiary is inside or outside the U.S. Its comment period closed Sept. 24.
What it means for you
- New H-1B hires from abroad: no $100,000 payment is required now, but an appeals ruling could change that, so build flexibility into filing dates and consular plans.
- Employers that already paid: keep payment records and any national-interest exception filings; there is no refund mechanism yet.
- Students changing from F-1 to H-1B inside the U.S.: this proclamation never applied to you; the $103,265 proposal is the one to watch.
Timeline
- President signs Proclamation 10973, effective Sept. 21
- USCIS guidance excludes in-country changes of status and extensions
- D.C. federal court rules for the government in the Chamber case; the Chamber appeals
- D.C. Circuit hears oral argument in the Chamber appeal
- Massachusetts federal court vacates the implementing policy
- First Circuit denies the government’s stay request
- Proclamation 11069 extends the restriction to Sept. 21, 2027
- N.D. Cal. vacates and bars agency policies under both proclamations
- The government appeals the N.D. Cal. ruling to the Ninth Circuit and seeks a stay
Sources
- White House: Presidential actions (Proclamations 10973 and 11069)
- First Circuit order denying a stay (PDF)
- Ogletree: Status of the $100,000 fee litigation
- Mintz: The extension proclamation explained
- Bloomberg Law: The government appeals the Northern California ruling
- Forbes: The Sept. 30 Northern District of California ruling
- Dallas Express: Registration figures in the extension proclamation
- Association of American Universities: Chamber lawsuit docket
Research and further reading
- Britta Glennon (2024), “How Do Restrictions on High-Skilled Immigration Affect Offshoring? Evidence from the H-1B Program,” Management Science. Finds that when H-1B visas are restricted, multinationals shift more jobs to their foreign affiliates.
Wondering what this means for your case?
Hibee’s team can assess it against your status, timeline and employer.
This article reflects public information as of Oct. 15, 2026. It is for general information only and is not legal advice. Hibee is not a law firm; for your specific case, rely on the latest official guidance and a licensed attorney.
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