On July 24, 2026, the U.S. Court of Appeals for the First Circuit denied the federal government’s request to temporarily reinstate the $100,000 payment requirement for certain H-1B petitions. The decision leaves in place a Massachusetts federal court ruling that vacated the fee while the government’s appeal proceeds.
The payment requirement originated from a September 2025 presidential proclamation and applied to certain new H-1B petitions involving beneficiaries outside the United States who would obtain H-1B status through consular processing. A coalition of twenty states challenged the policy, arguing that the executive branch lacked authority to impose the payment and that the implementing agencies did not follow required federal rulemaking procedures.
The Massachusetts district court agreed and invalidated the policy in its entirety on June 8, 2026. In declining to pause that ruling, the First Circuit found that the government had not made a sufficiently strong showing that it was likely to prevail on appeal. The court also noted the potential harm to state healthcare systems, schools, universities, and other public employers that rely on H-1B professionals.
Summary of Ongoing Litigation
| Court and Challenge | Ruling | Current Status |
|---|---|---|
| U.S. District Court for the District of Massachusetts. Challenge brought by twenty states led by California. | Vacated the fee policy on June 8, 2026, finding that the agencies exceeded their statutory authority and did not comply with federal rulemaking requirements. | The government appealed to the First Circuit. Its request to reinstate the fee during the appeal was denied on July 24, 2026. |
| U.S. District Court for the District of Columbia. Challenge brought by the U.S. Chamber of Commerce and other business organizations. | Ruled in favor of the government in December 2025, concluding that the payment requirement fell within the president’s authority to regulate entry into the United States. | The decision is under review by the U.S. Court of Appeals for the D.C. Circuit. |
| Federal court in California | A separate lawsuit also challenges the legality of the $100,000 fee. | The case remains pending. |
Implications
The $100,000 payment is not currently enforceable. Employers may begin to see action on H-1B petitions that were delayed or held because of the fee requirement, although USCIS and the Department of State have not yet issued updated implementation guidance.
The First Circuit’s ruling addresses only whether the fee may be enforced while the appeal is pending. It does not decide the final merits of the government’s appeal. The differing federal court decisions also increase the possibility of additional appellate proceedings or review by the U.S. Supreme Court.
Next Steps
Employers should continue using the standard H-1B filing fees currently recognized by USCIS and retain records of any $100,000 payments previously submitted. Such documentation may become relevant if a later court decision creates a refund process or reinstates the requirement.
INLG will continue monitoring the First Circuit appeal, the parallel D.C. Circuit proceedings, and any updated guidance from USCIS or the Department of State.