The $100K H-1B fee has been extended to 2027 under Trump’s H-1B executive order, despite an ongoing H-1B court case challenging the policy. If you’re an H-1B visa holder, employer, international student, or foreign worker planning an H-1B transition, this is important H-1B visa news to understand.
But there’s an important wrinkle. The administration has extended the policy, while a federal court ruling that struck down the government’s implementation of the $100,000 payment remains in effect. USCIS currently says it will not collect the payment while that court order remains in place.
So, what does the 2027 extension actually mean?
What is the $100,000 H-1B fee and why was it extended to 2027?
On September 19, 2025, President Trump issued Proclamation 10973, restricting the entry of certain H-1B workers unless the employer’s petition was accompanied or supplemented by a $100,000 payment. The original policy took effect on September 21, 2025, for 12 months.
On September 18, 2026, President Trump issued a new proclamation extending those restrictions for another 12 months, through September 21, 2027. The new proclamation says the original restrictions have been effective and that the administration believes the conditions that prompted them continue.
The administration says the measure is intended to address what it describes as abuse of the H-1B program, including lower-paid recruitment and replacement of U.S. workers. Those are the administration’s stated reasons for continuing the policy.
The extension does not create a separate $100,000 charge. It continues the existing framework for another year.
However, the court challenge changes the picture significantly.
A federal district court has already vacated the government’s implementation of the payment requirement, and the First Circuit later refused to put that ruling on hold.
Who is actually subject to the $100,000 H-1B fee?
The original policy was aimed at certain new H-1B petitions involving workers outside the United States.
The State Department explains that the restriction applies to H-1B visa issuance and entry based on petitions filed after September 21, 2025. The proclamation also directs DHS to restrict decisions on covered petitions for H-1B workers outside the U.S. unless the payment is made or an exception applies.
That does not mean every H-1B petition carries a $100,000 payment.
The original policy generally did not target:
- H-1B workers already in the U.S. seeking an extension or change of status
- Petitions filed before September 21, 2025
- Existing H-1B visa holders whose previously issued visas were not being revoked under the proclamation
- Certain cases qualifying for an exception or national-interest determination
This distinction is particularly important for F-1 students moving to H-1B status.
An F-1 student already in the U.S. may have an H-1B petition filed requesting a change of status rather than consular processing. That is different from an H-1B worker outside the U.S. who needs visa issuance and admission.
The details of the petition and the beneficiary’s location therefore matter.
Why did the courts block the $100,000 H-1B fee?
The main case is State of California v. Mullin, filed in the U.S. District Court for the District of Massachusetts by a coalition of 20 states.
On June 8, 2026, Judge Leo T. Sorokin ruled for the states and vacated the government’s policy implementing the $100,000 payment requirement. The court concluded that the payment functioned as a tax and that the executive branch lacked congressional authority to impose it. The court also found violations of the Administrative Procedure Act.
The court wrote:
“There are no statutory powers authorizing Defendants to implement a $100,000 tax on H-1B petitions.”
The government appealed.
The district court temporarily placed its ruling under an administrative stay while the government sought relief from the U.S. Court of Appeals for the First Circuit. On July 24, 2026, the First Circuit denied the government’s request to stay the district court’s ruling.
The appeals court said the government had not made a “strong showing” that it was likely to succeed on the merits.
That decision did not end the lawsuit. The underlying appeal remains pending.
If the fee is extended, do employers have to pay it right now?
Not according to USCIS’s current position.
This is probably the most important part of the latest update.
The administration has extended the policy through September 21, 2027. But the court ruling vacating the government’s implementation remains in effect.
USCIS says it will comply with the First Circuit’s order and will not collect the $100,000 payment while the court ruling remains in place. USCIS has also stated that if the court order is later lifted, DHS still intends to collect the payment.
So, the September 18 extension should not be interpreted as an instruction for employers to start sending $100,000 with covered H-1B petitions today.
There are currently two separate developments to follow:
The administration: has extended the policy through 2027.
The courts: have blocked the government’s current implementation of the payment requirement.
For an employer preparing an H-1B filing, current USCIS instructions and the status of the litigation should be checked before filing.
What does the 2027 extension mean for H-1B workers, employers, and future applicants?
For employers recruiting H-1B workers from abroad, the extension keeps the possibility of a $100,000 payment requirement on the table if the court ruling is eventually lifted.
That could affect hiring decisions, sponsorship plans and the timing of bringing workers to the United States.
For H-1B workers already in the U.S., the extension does not automatically turn every extension, transfer or change-of-status petition into a $100,000 case. The original policy focused on certain H-1B workers outside the country.
International students should also pay attention to the distinction between change of status and consular processing. An F-1 student transitioning to H-1B inside the U.S. may be in a different position from someone who needs to obtain an H-1B visa abroad.
For employers planning ahead for 2027, uncertainty remains. The administration has extended the policy, but the litigation could change its legal status.
What happens next with the $100,000 H-1B fee?
The First Circuit appeal continues, with briefing on the merits expected to conclude in October 2026.
The appeals court could ultimately uphold the district court’s ruling, reverse it, or otherwise alter the legal framework surrounding the payment requirement. Further review could also be sought.
There is another H-1B fee that employers should not confuse with the $100,000 payment.
In August 2026, DHS proposed a separate $103,265 fee for all H-1B cap-subject petitions, including petitions eligible for the advanced degree exemption. The proposed fee would be paid when the petition is filed and would be added to other applicable fees.
That proposal is not the same $100,000 payment involved in State of California v. Mullin, and it is not currently a final fee.
Public comments on the $103,265 proposal are due September 24, 2026.
For now, employers and applicants should keep track of filing dates, whether the beneficiary is inside or outside the United States, whether the case requests change of status or consular processing, and any upcoming international travel.
What should you do now?
If you’re an H-1B employer or worker, don’t let the headline alone determine your next move.
The administration has extended the $100,000 H-1B policy to 2027. At the same time, USCIS is currently not collecting the $100,000 payment because of the court ruling.
If you’re planning an H-1B filing, particularly for someone outside the U.S., review the current government instructions before filing. The difference between a change-of-status case and a case requiring visa issuance abroad can also matter.
Whether you’re an employer in New York or New Jersey, an H-1B worker elsewhere in the U.S., or a foreign national preparing to move to the U.S., immigration strategy can become especially important when a major fee is tied up in ongoing litigation.
The Law Offices of Anne Z. Sedki
H-1B rules are changing quickly, and I know it can be difficult to figure out which headline actually applies to your case.
At The Law Offices of Anne Z. Sedki, I help employers, H-1B workers and other foreign nationals understand how changing immigration rules may affect their options. My team serves clients in New York and New Jersey, nationwide, and worldwide, including employers dealing with H-1B sponsorship and workers navigating status changes, visa processing and international travel.
If you’re unsure whether the $100,000 H-1B payment could affect your case, or you’re trying to plan an H-1B transition while the lawsuit continues, let’s talk about your situation.
Frequently Asked Questions (FAQs)
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Is the $100,000 H-1B fee still in effect in 2026?
The administration has extended the policy through September 21, 2027. However, USCIS currently says it will not collect the $100,000 payment because the government’s implementation was vacated and the First Circuit denied the government’s request to pause that ruling.
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Has the $100,000 H-1B fee been extended to 2027?
Yes. The September 18, 2026 proclamation extends the restrictions for another 12 months, through September 21, 2027.
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Who has to pay the $100,000 H-1B fee?
The original policy targeted certain new H-1B petitions involving workers outside the United States. It did not impose a $100,000 payment on every H-1B petition.
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Does the $100,000 fee apply to H-1B extensions or transfers?
Generally, the original policy did not target H-1B extensions or changes of status for workers already in the United States.
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Does the $100,000 H-1B fee apply to F-1 students changing to H-1B status?
An F-1 student requesting a change of status inside the United States is treated differently from an H-1B beneficiary outside the country who needs visa issuance and admission. The specific filing strategy matters.
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Can the $100,000 fee still be collected while the court case is pending?
USCIS currently says it will not collect the payment while the court ruling remains in effect. DHS has stated that it plans to collect the payment if the order is later lifted.
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What happens if the court ultimately strikes down the $100,000 H-1B fee?
If the court ultimately upholds the vacatur, the government would remain unable to collect the payment under the policy as currently implemented. The final consequences would depend on the court’s orders and any government guidance.
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Will employers get the $100,000 H-1B fee back if the fee is ruled unlawful?
That would depend on the final court orders and any refund process established by the government. Employers should not assume a refund would automatically be issued.
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Does the $100,000 H-1B fee apply to workers already in the United States?
The original policy focused on certain H-1B workers outside the United States. It generally did not impose the payment on existing workers seeking extensions or changes of status inside the country.
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What should employers and H-1B applicants do while the lawsuit continues?
Monitor current USCIS and State Department instructions, confirm whether the beneficiary is inside or outside the United States, and review the filing and travel strategy before taking action.
