By: Ann Massey Badmus July 25, 2026

Federal Court Deals Another Blow to Trump’s $100,000 H-1B Fee: What Employers Need to Know

Who is affected?

The $100,000 fee, introduced via presidential proclamation in September 2025, was specifically targeted at new H-1B workers hired from outside the United States. The policy was designed to make the cost of hiring overseas talent so high that it would be effectively impossible for many organizations to justify.

You are affected by this ruling if you are:

A Small Business or Startup: You can now breathe a sigh of relief. The $100,000 fee would have effectively locked smaller companies out of the global talent pool.
A University or Research Institution: Many nonprofit organizations rely on specialized foreign researchers. The court’s refusal to stay the injunction ensures these vital roles can still be filled without catastrophic costs.
An International Professional: If you are currently outside the U.S. and seeking H-1B sponsorship, the financial barrier to your entry has been removed for the time being.

It is important to note that the fee did not apply to foreign citizens already in the U.S. on student visas (F-1 status) who were changing to H-1B status. However, for every other new H-1B applicant coming from abroad, this ruling is a game-changer.

What does this mean?

The immediate impact of the First Circuit’s decision is that you must plan as though the $100,000 fee does not exist.

Before this proclamation, employers typically paid between $2,000 and $5,000 in total government fees for an H-1B petition, depending on the size of the company and whether they opted for premium processing. The jump to $100,000 represented a staggering 2,000% to 5,000% increase in costs.

By refusing to stay the lower court's ruling, the First Circuit has ensured that:

Filing Costs Remain Stable: You can continue to file H-1B petitions using the standard fee schedule.
Hiring Plans Can Proceed: Projects that were on hold due to the anticipated $100,000 cost can now move forward.
Financial Predictability: Businesses can budget for the next fiscal year without the looming shadow of a six-figure tax per hire.

The court found that the government failed to show a likelihood of success on appeal. This is a strong signal that the legal basis for the $100,000 fee is on very shaky ground.

Why the change?

The legal battle over this fee isn't just about immigration policy; it’s about the limits of executive power. On June 8, 2026, U.S. District Judge Leo Sorokin ruled that the $100,000 charge was not a "fee" but an "unlawful tax."

In the United States, the power to tax belongs solely to Congress. The court held that the executive branch cannot unilaterally impose such a massive financial burden without explicit legislative approval. Judge Sorokin’s ruling was based on the principle that the H-1B program already has a fee structure established by law, and the president cannot simply override that structure by proclamation.

The First Circuit panel agreed, noting that whenever Congress intends immigration authorities to levy fees, it does so expressly in the Immigration and Nationality Act. Because no such authority exists for a $100,000 "surcharge," the court deemed the policy likely unlawful.

The Legal Battle So Far

This case has moved rapidly through the courts since the fee was announced in late 2025. Here is a timeline of the critical events:

September 2025: The Trump administration announces the $100,000 H-1B fee to "protect American workers."
Late 2025: A coalition of 20 Democratic attorneys general and several business groups sue the administration.
June 8, 2026: Judge Leo Sorokin issues a nationwide injunction, vacating the policy.
June–July 2026: The administration appeals to the First Circuit and asks for a "stay" (a pause) on the injunction so they can collect the fee while the case is argued.
July 24, 2026: The First Circuit denies the stay, keeping the fee BLOCKED.

The administration's primary argument was that the H-1B program was being used to replace American workers and that the high fee was a necessary regulatory tool. However, the courts have consistently found that such a drastic measure requires a change in law from Congress, not a stroke of a pen from the White House.

Impact on Small Businesses and Startups

For many of our clients at Badmus & Associates, the $100,000 fee wasn't just a hurdle; it was a wall. Smaller firms often depend on highly specialized talent: engineers, data scientists, and medical researchers: who may not be available in the local labor market.

If you are a startup founder, you know that every dollar counts. A $100,000 fee would have meant choosing between hiring a key team member and funding six months of operations. By striking down this fee, the courts have preserved the ability of small businesses to compete for the best minds in the world.

What happens next?

While this is a major victory, the legal journey is not entirely over. Here is what we anticipate in the coming months:

Full Appeal in the First Circuit: The court will still hear the full merits of the case. However, by denying the stay, the judges have already signaled that they do not believe the government’s arguments are likely to win.
Supreme Court Petition: If the administration loses the full appeal, they could ask the U.S. Supreme Court to step in. It is important to remember that the Supreme Court is not required to take the case, and they often decline to hear immigration fee disputes that don't involve a split between different circuit courts.
Congressional Action: There is always the possibility that Congress could take up the issue of immigration fees, but given the current political climate, a $100,000 fee seems unlikely to gain legislative traction.

For now, the status quo remains. You can continue to file your H-1B petitions: including those for the 65,000 regular cap and 20,000 advanced degree cap visas: under the traditional fee structure.

The Bigger Picture

This ruling is part of a broader trend of judicial oversight regarding executive actions in immigration. It highlights the importance of the H-1B visa program to the American economy. The program allows U.S. employers to temporarily employ foreign workers in specialty occupations that require a bachelor's degree or higher.

By keeping the program accessible, the courts are ensuring that the U.S. remains a destination for global innovation. If you are concerned about how future fee changes might affect your employment-based immigration strategy, now is the time to consult with an experienced attorney.

Actionable Steps for You

Don't let the uncertainty of the news cycle stall your hiring plans. Here is what you should do immediately:

Proceed with Filings: If you have been holding back on an H-1B petition due to cost concerns, move forward now while the fee is blocked.
Audit Your Budget: Review your immigration budget based on the standard $2,000–$5,000 fee range rather than the $100,000 figure.
Stay Informed: The legal landscape is shifting. We will keep you updated as the First Circuit moves toward a final decision.
Consult Experts: Every case is unique. If you have questions about specific H-1B requirements or other new fee rules, reach out to our team.

At Badmus & Associates, we are dedicated to helping you navigate these complex changes. We provide the comprehensive legal support you need to ensure your business continues to thrive, no matter how the political winds shift.

Want to discuss your H-1B strategy? Contact us today to schedule a consultation with our experienced immigration team.

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Immigration laws and court rulings are subject to change. Always consult with a qualified attorney regarding your specific legal situation.

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