The $100,000 H-1B Fee is Blocked. DHS Has Proposed a Separate $103,265 Fee.

Watch: H-1B Fees

Is the $100,000 H-1B Fee Still in Effect?

No. Two federal courts have blocked it, and USCIS is not collecting it while the government appeals.

The President created the $100,000 fee in September of 2025 through Presidential Proclamation 10973. It applied to new H-1B petitions for workers outside the United States. A coalition of states sued, and on June 8, 2026, Judge Leo Sorokin of the U.S. District Court for the District of Massachusetts vacated the fee. He held that it worked as a tax, a power Article I of the Constitution reserves to Congress. He also held that the agencies had violated the Administrative Procedure Act. On July 24, the First Circuit refused to let the government keep collecting the fee during the appeal, and USCIS updated its guidance to comply.

Here’s the litigation timeline so far:

What Is the $103,265 H-1B Fee, and How Is It Different?

It is a separate fee DHS proposed on August 25, 2026, after the Massachusetts court vacated the $100,000 fee. Employers would pay $103,265 on every cap-subject petition, including master’s cap petitions, in addition to the standard filing fees. Cap-exempt filings and extensions would not be subject to the new fee.

The difference is in DHS’s approach to building the $103,265 fee. In prior litigation, courts faulted the agencies for imposing the $100,000 fee without the notice-and-comment process the Administrative Procedure Act requires at 5 U.S.C. § 553. DHS is now going through the proper channel to process it, undermining the argument that did most of the work in both cases. The tax argument still stands. A six-figure charge on a petition looks like a tax whether it arrives by proclamation or by regulation, and we expect challengers to say so.

DHS also stated that the collected fee would fund USCIS, CBP, ICE, the immigration courts, and the Departments of State and Labor. It says it chose H-1B employers because they can afford it. We find that justification thin. The base H-1B filing fee is $780, so this charge is more than 130 times that. Part of it would fund ICE and the immigration courts, which play no role in deciding an H-1B petition.

What the Two Fees Would Cost an Employer

Today, employers file H-1B petitions with the standard fees and no $100,000 payment. A final DHS rule would add $103,265 to every cap-subject petition, regardless of what happens to the $100,000 fee in court.

Imagine a 40-person software company selected for two candidates in the March 2027 lottery. One is a master’s student in Arizona on an F-1 visa, and the other is an engineer living in Bangalore. Under the proposed rule, the two petitions would carry an additional $206,530. If the courts also reinstate the $100,000 payment, the engineer’s petition would include both fees. The total for the two new hires would reach $306,530 before accounting for legal fees. With the F-1 student, the employer also bears the fee and must decide whether the hire is worth it.

So, employers planning for 2027 should budget cap-subject hiring with and without the new fee. They should also keep receipts for any $100,000 payment made while it was in force, since no court has ordered refunds.

Ultimately, the $100,000 fee now depends on the First Circuit. The $103,265 fee, on the other hand, depends on whether DHS finalizes it and whether it survives the tax challenge we expect. If it does, employers need to be prepared to pay the second fee on every cap-subject H-1B petition they file.

Frequently Asked Questions About the H-1B Fees

Bottom Line: Two Paths to a Six-Figure H-1B Fee

The government is pursuing a six-figure H-1B fee on two tracks. The first is the $100,000 proclamation payment. The second is the $103,265 regulatory fee, which is moving through the process the first fee skipped, and neither court order touches it. We expect DHS to finalize the rule and challengers to attack it as a tax. If it survives, employers will pay $103,265 on every cap-subject H-1B petition they file, whatever the First Circuit decides about the original payment.

The outcome of each H-1B fee may influence which roles you sponsor, how you approach the next cap season, and how you budget for foreign talent.

We’re following both tracks closely and will update this post as the appeal and the rulemaking develop. If you’d like to discuss how these changes could affect your hiring plans or your own H-1B case, we’re available to help with the next steps.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. The information reflects immigration law and agency policy as of the publication date and may change. It should not be relied upon for any specific situation. Reading this article does not establish an attorney-client relationship. For advice regarding your individual circumstances, please consult one of our attorneys.