The $100,000 H-1B Fee: What Applies Right Now

Few recent immigration measures have caused as much upheaval as the $100,000 fee imposed on new H-1B visa petitions. Announced through a presidential proclamation in September 2025, the fee abruptly raised the cost of hiring foreign professionals and reshaped the largest skilled-worker pathway in the United States. In June 2026, a federal judge ruled it illegal, but the decision lasted only a few days before being stayed on appeal.

For employers sponsoring talent from countries such as India, Brazil, Mexico, and the Philippines, understanding exactly what’s in effect today has become a strategic issue. This overview explains where the fee came from, what the courts have decided, and above all, which rule applies right now.

Where the Fee Came From

The September 2025 proclamation, titled Restriction on Entry of Certain Nonimmigrant Workers, created a $100,000 payment per beneficiary for certain H-1B petitions. The stated goal was to reduce reliance on foreign labor and encourage companies to hire and train domestic workers.

In practice, the fee hit hardest for sponsors of beneficiaries living outside the United States who need consular processing. Candidates already on U.S. soil were, for the most part, shielded from the charge, while those relying on a consulate abroad faced a nearly prohibitive cost.

The Effect on the Lottery

The impact on the annual H-1B registration was immediate. Eligible registrations plunged from 343,981 in fiscal year 2026 to 211,600 in fiscal year 2027, a drop of more than 38%. By mid-February 2026, the $100,000 fee had actually been paid 85 times by sponsors.

The decline reflects the calculation many companies made: faced with a cost of that magnitude per hire, a large share simply stopped registering candidates who would need consular processing.

Why the Courts Blocked It

On June 8, 2026, Judge Leo Sorokin of the U.S. District Court for the District of Massachusetts ruled the fee illegal in State of California et al. v. Mullin (No. 25-cv-13829). In the judge’s view, the $100,000 payment is, in substance and application, a tax, and only Congress has the authority to impose one.

The substance and application of the $100,000 payment reveal that it is a tax, regardless of what the charge is called.

The ruling also found a violation of the Administrative Procedure Act. The government’s defense argued that presidential authority over immigration matters is broad enough to support the proclamation; the plaintiffs countered that such an interpretation would allow the Executive Branch to bypass Congress on tax policy.

The Turnaround on Appeal

The victory was short-lived. On June 12, 2026, the district court itself granted an emergency administrative stay, pausing the order that had struck down the fee. As a result, the $100,000 charge went back into effect while the government prepares its appeal.

On June 18, 2026, the government formally requested that Sorokin’s ruling be stayed for the duration of the appeal. The case moved up to the First Circuit Court of Appeals under case number 26-01699. In other words, despite the initial headlines that the fee had been struck down, it remains in effect today while the appeal is pending.

Consular Processing versus Adjustment of Status

The most important distinction for the beneficiary is where they are located. Those already in the United States in another status who seek to change to H-1B through an internal adjustment were, under the proclamation’s reading, largely outside the fee’s reach. Those who depend on an interview and visa issuance at a consulate abroad, however, are the direct target of the $100,000 charge.

This creates an uneven scenario: two professionals with the same qualifications can face radically different costs simply based on whether they are inside or outside the country at the time of the petition. For families planning a move from countries such as India, Nigeria, Brazil, or the Philippines, this detail determines the financial viability of the entire plan.

Case Timeline

DateEventSep. 2025Proclamation creates the $100,000 feeJun. 8, 2026Judge Sorokin rules the fee illegalJun. 12, 2026Court stays its own order; fee is reinstatedJun. 18, 2026Government requests stay pending appealOngoingFirst Circuit reviews the appeal (No. 26-01699)

The Standard Fee Structure

Aside from the $100,000 charge, the government cost of an H-1B petition is made up of several smaller fees. The base Form I-129 fee varies according to the employer’s size, plus the $500 fraud prevention fee and the ACWIA training fee of $750 for organizations with 25 or fewer full-time employees and $1,500 for larger ones.

Adding up the mandatory components, the government cost of a petition typically runs to a few thousand dollars, far from the six-figure level imposed by the proclamation. Optional premium processing adds about $2,805 and guarantees review within an expedited timeframe.

The Door for Exempt Entities

Institutions of higher education, nonprofit research organizations, and entities affiliated with them enjoy cap-exempt status: they don’t depend on the annual April lottery or run into cap limits, and can file petitions at any time of year.

This same group was already exempt from the ACWIA training fee. For universities and research centers hiring international researchers and physicians, the cap-exempt route remains one of the most predictable pathways in the H-1B system, even though the final word on the $100,000 fee still depends on the outcome at the First Circuit.

What to Do Amid the Uncertainty

Until the merits are decided for good, prudent employers are working with two parallel budgets. It’s worth mapping out which positions truly require consular processing, assessing whether the candidate can adjust status internally, and checking eligibility for exempt categories before taking on the six-figure cost.

Beneficiaries, in turn, should keep their qualification documentation organized and track Visa Bulletin dates, since the outcome of the appeal could quickly change the cost and timeline calculus for the whole process. Until there is a stable resolution, the correct reading is simple: the $100,000 fee is in effect today.

About the author

Victoria Harper

Editor-in-Chief

Meet the author

As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.