Update: First Circuit Denies Request to Stay Order Vacating $100,000 H-1B Fee

On July 24, 2026, the U.S. Court of Appeals for the First Circuit denied the federal government’s request to stay a district court order vacating the policy that implemented the $100,000 H-1B payment requirement.

The $100,000 payment requirement should no longer apply while the appeal is pending.

Because the First Circuit declined to keep the district court’s order on hold, USCIS should no longer assess the additional $100,000 payment under the vacated policy unless a later court order changes the current status.

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U.S. District Court Declares $100,000 H-1B Fee Unlawful

What’s Happening

On Monday, June 8, 2026, a federal district court in Massachusetts vacated the $100,000 H-1B payment requirement imposed by President Trump's Proclamation 10973, signed on September 19, 2025. The policy is declared unlawful and unenforceable effective immediately. 

What You Need to Know

The court struck down the policy on three independent grounds. 

First, the $100,000 payment is an unconstitutional tax. Only Congress has the power to levy taxes, and Congress never delegated that power to the President through the immigration statutes he relied on. The court drew on the Supreme Court’s 2026 ruling in Learning Resources v. Trump, which reached the same conclusion about International Emergency Economic Powers Act (IEEPA) tariffs.

Second, the agencies exceeded their statutory authority. No law authorized USCIS or the State Department to impose a $100,000 tax. Rather, the existing fee-setting authority in the immigration statutes covers only cost-recovery adjudication fees. 

Third, the policy was arbitrary and capricious. The agencies implemented it without any reasoned explanation, without assessing employers’ reliance interests, and without considering its impact on healthcare and education.

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