H-1B $100,000 fee deemed illegal: What happens next?

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H-1B $100,000 fee deemed illegal: What happens next?
A federal judge rules H-1B visa fees are illegal.

A federal judge has declared that a $100,000 fee imposed by U.S. President Donald Trump on new H-1B visas for high-skilled foreign workers is illegal and must be invalidated, dealing a major blow to the Trump administration and its plans to raise the cost of the H-1B visa program. U.S. District Judge Leo Sorokin in Boston made the ruling in a lawsuit filed by 20 Democratic state attorneys general challenging Trump’s September announcement of a significant increase in the cost of obtaining H-1B visas. The Department of Homeland Security has not yet reacted to the ruling, but the government can appeal the ruling or a stay of execution.Immigration attorney Rahul Reddy said that as things stand, H-1B petitions can be filed for free even with consular proceedings.“The most important part of the decision is that the court did not treat the $100,000 fee as a normal immigration application fee. The court stated that the $100,000 payment requirement amounted to a tax, not a penalty.” “This distinction is important because taxes are controlled by Congress, not the president,” Reddy said.“Let me get this straight: If the administration wants to end or reshape the H-1B program, it must go to Congress, not quietly build a six-figure wall through a proclamation,” he said.

this is a timetable H-1B visa fees dispute

September 19, 2025

  • President Donald Trump signed a presidential proclamation titled “Restricting the Admission of Certain Nonimmigrant Workers.”
  • The announcement imposes a $100,000 fee on new H-1B petitions, one of the most significant changes ever to the H-1B program.

September 20, 2025

  • USCIS has issued implementation guidance explaining how the fee works.
  • The agency clarified that the fee only applies to certain new H-1B petitions filed after the effective date and does not apply to petitions approved or filed before the rule took effect.

September 21, 2025

  • The $100,000 fee becomes official at 12:01 p.m. ET.
  • The fee will be paid with new H-1B petitions filed after that date, including those filed under future lottery cycles, the White House said.

September to October 2025

  • There is widespread confusion as to whether the fee applies to existing H-1B holders, renewals, extensions, transfers and overseas travel.
  • The White House clarified that the fee is a one-time petition fee, not an annual fee.
    Current H-1B holders are generally not affected.
    Visa renewals and extensions are not the main target of the measure.

October 20-23, 2025

  • USCIS has issued guidance that further narrows the scope.
  • The agency clarified that the fee mainly applies to:
    New H-1B petitions involving consular processing, and
    The beneficiary is outside the United States and does not have a valid H-1B visa.
    Applications for extensions, modifications and changes of status generally remain exempt.

March to April 2026

  • The FY 2027 H-1B cap season becomes the first major lottery cycle affected by the new fee structure.
  • Employers who sponsor certain new overseas workers face higher costs.

June 2026

  • Homeland Security Secretary Markwayne Mullin told lawmakers that more than 200,000 applicants have paid the $100,000 fee in fiscal 2026.
  • He also said the Department of Homeland Security has the authority to grant exemptions in limited circumstances.

June 3-8, 2026A federal judge ruled that the Trump administration’s $100,000 H-1B fee was unlawful, overturning the policy.

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