Is the $100,000 H-1B Fee Still in Effect? 2026 Update
The $100,000 H-1B fee is extended to 2027 but not being collected after a court ruling. Who it hits, the proposed $103,265 fee, and dates to watch.
PostNest Opportunities
Author & Contributor
Last updated: September 30, 2026. This is a fast-moving policy story; check the linked USCIS pages before you act.
On paper, yes. In practice, no: the $100,000 H-1B fee is not being collected right now. A federal court in Massachusetts vacated the USCIS guidance that implements the fee on June 8, 2026, the First Circuit refused to pause that ruling on July 24, and USCIS says it is complying. But the fee is not gone. On September 18, 2026, President Trump extended the underlying proclamation until September 21, 2027, DHS says it will collect the payment if the court order is lifted, and a separate proposed rule would add a $103,265 fee to every cap-subject H-1B petition.
That combination has left students, engineers, and employers in India and the US unsure what they actually owe. This guide separates the three moving parts, shows who each one would affect, and lists the dates to watch.
Key Takeaways
- The $100,000 payment is not owed today because of a court ruling, but the proclamation behind it has been extended to September 21, 2027.
- It targets new petitions for workers outside the US without a valid H-1B visa. Extensions, amendments, and changes of status granted inside the US are exempt.
- A separate $103,265 fee for all cap-subject petitions is only proposed. It is not final.
- A new executive order tells agencies to weigh an employer's layoffs when reviewing H-1B filings.
- India is most exposed: 69.9% of approved H-1B petitions in FY2025 were for people born in India, according to USCIS.
Where the $100,000 H-1B Fee Stands Today
Three separate actions are in play, and they have very different legal status. Much of the confusion comes from treating them as one fee.
| Action | What it does | Status (Sept 30, 2026) |
|---|---|---|
| $100,000 proclamation (Sept 2025, extended Sept 2026) | Requires a $100,000 payment with certain new H-1B petitions | Extended to Sept 21, 2027, but not being collected under a court order |
| $103,265 DHS proposed rule (Aug 2026) | Would add a fee to all cap-subject H-1B petitions | Proposed only; not in effect |
| H-1B executive order (Sept 18, 2026) | Makes employer layoffs a factor in H-1B decisions | Signed Sept 18, 2026; Labor Department review must begin within 30 days |
The September 18, 2026 proclamation continues the original September 19, 2025 order and restricts entry "except for those aliens whose petitions are accompanied or supplemented by a payment of $100,000." It expires at 12:00 a.m. Eastern on September 21, 2027 unless extended again. The White House fact sheet says the fee was designed "to curb abuses that displace U.S. workers and undermine national security." The challengers argue, as immigration law firm Borderless summarizes, that it "amounted to a tax Congress never authorized."
The catch is the courts. In State of California et al. v. Mullin (D. Mass., No. 1:25-cv-13829), a coalition of states won a ruling on June 8, 2026 that vacated the guidance implementing the fee. The judge initially paused that ruling so USCIS could keep collecting during the appeal, according to Fragomen. On July 24 the First Circuit denied the government's request for a stay. The USCIS H-1B page (updated September 21, 2026) says DHS will comply, and adds: "If this order is later lifted, DHS still plans to collect the payment." On September 23, Yale's international office put it plainly: "The agency is not currently collecting this fee."
Timeline: How the H-1B Fee Was Extended to 2027
- September 19, 2025: the original $100,000 proclamation is signed. It applies to petitions filed from 12:01 a.m. Eastern on September 21, 2025.
- December 2025: a federal court in Washington, DC upholds the fee in a case brought by the US Chamber of Commerce and the Association of American Universities. The appeal was argued in March 2026 and is still pending, according to Borderless.
- June 8, 2026: the District of Massachusetts vacates the fee guidance, then pauses its own ruling while the government appeals.
- July 24, 2026: the First Circuit refuses to stay the ruling, after which USCIS stops collecting the fee.
- August 24, 2026: DHS announces the proposed $103,265 fee.
- September 18, 2026: the proclamation is extended to 2027 and the H-1B executive order is signed.
- September 21, 2027: the extended proclamation is set to expire.
Who Would Have to Pay, and Who Is Exempt
The $100,000 payment was never meant for every H-1B filing. USCIS says it applies to petitions filed on or after September 21, 2025 "on behalf of beneficiaries who are outside the United States and do not have a valid H-1B visa." It does not apply to petitions requesting "an amendment, change of status, or extension of stay for an alien inside the United States" when that request is granted.
The USCIS H-1B FAQ adds that the proclamation does not affect previously issued H-1B visas, petitions filed before September 21, 2025, or fees for H-1B renewals. It describes the payment as "a one-time fee on submission of a new H-1B petition." Here is how that plays out for common situations if the fee is ever reinstated:
| Your situation | Would the $100,000 apply? |
|---|---|
| F-1 or OPT student in the US changing status to H-1B | No, if the change of status is granted inside the US |
| Current H-1B worker extending or changing employers inside the US | No, if the extension or amendment is granted |
| H-1B holder with a valid visa traveling to India and back | No |
| Engineer in India with a new US offer and no H-1B visa | Yes, this is the main target |
| Petition requesting consular notification for someone in the US | Yes, per USCIS |
The proclamation also lets the Secretary of Homeland Security exempt an individual, a company, or a whole industry when the hiring is judged to be "in the national interest." For reference, $100,000 is about ₹96 lakh at ₹95.98 per dollar, the cross rate derived from European Central Bank reference rates for September 29, 2026.
The Separate $103,265 Fee DHS Has Proposed
The $103,265 figure is a different policy, and it could outlast the proclamation. On August 24, 2026, DHS proposed "a $103,265 fee for all H-1B cap-subject petitions," including master's-cap cases. It estimates revenue of about $8.8 billion a year, based on roughly 85,000 cap-subject petitions. It would not apply to petitions that are not subject to the cap, such as those filed by institutions of higher education, certain nonprofit research organizations, and governmental research organizations.
Because this would be a regulation rather than a presidential proclamation, it would stand on a different legal footing. According to the immigration law firm Reddy Neumann Brown, the proposal is aimed at the FY2028 cap season, whose registration would ordinarily open in early March 2027. Until DHS publishes a final rule, it is not owed.
What the New H-1B Executive Order Says About Layoffs
The September 18 executive order adds a new test. Section 3(a) directs the Departments of State, Labor, and Homeland Security to consider "whether the employer sponsor directly or indirectly engaged in layoffs within the previous year or plans future layoffs" that affect similar US workers.
Section 3(b) gives the Labor Department 30 days, so until about October 18, 2026, to begin reviewing previously filed labor condition applications for possible enforcement. The order states that tech employers laid off "somewhere between 800,000 to 1.3 million American employees from 2022 through 2026." That is the administration's figure; the order does not give its method.
For employers that cut staff and still sponsor H-1B workers, the order is already in force as a directive to agencies, while the $100,000 payment remains blocked. How it is applied will depend on agency action.
How the Wage-Weighted H-1B Lottery Fits In
Starting with FY2027, the H-1B lottery favors higher-paid roles. The USCIS cap season page says registrations are entered into the selection pool based on the offered wage level:
The annual cap itself is unchanged: 65,000 regular visas plus 20,000 for people with a US master's degree or higher. Taken together, entry-level roles face lower lottery odds, and hiring from abroad could carry a six-figure cost if either fee takes effect.
Why This Matters So Much for India
India is the country most affected by any H-1B change. The USCIS FY2025 H-1B characteristics report shows 283,772 of 406,348 approved petitions (69.9%) were for beneficiaries born in India. China was second at 12.1%. Computer-related occupations made up 62% of all approvals.
Indian IT services firms had already cut back. An analysis by the National Foundation for American Policy, reported by The Tribune, found the top seven Indian IT firms received 4,573 approvals for new H-1B workers in FY2025, 37% fewer than in FY2024. Amazon alone received 4,644 approvals for new H-1B workers.
For many Indian developers, that shift makes remote work for overseas companies a practical alternative to the lottery. PostNest regularly lists openings such as a remote backend Java developer role.
What to Do Now, by Situation
This is general information, not legal advice. Talk to an immigration attorney about your own case.
- Students on F-1 or OPT in the US: a change of status inside the US is exempt from the $100,000 payment. Keep your status valid and discuss travel plans with your school's international office before leaving the country.
- Engineers in India with a US offer: you are the group the fee targets. Ask your employer how it is planning for a possible reinstatement, and watch the FY2028 registration rules. Many US companies also hire in India directly, such as the MongoDB software engineer role in Gurugram, or on remote contracts, like this remote senior software engineer contract.
- Current H-1B holders: extensions and transfers inside the US are exempt, and valid visas are unaffected. Check current visa appointment waits on the State Department's wait-time tool before planning a stamping trip.
- US employers: budget for the possibility that either fee applies to FY2028 hiring from abroad, and review how recent layoffs could affect filings under the new executive order.
What to Watch Next
- By October 18, 2026: the Labor Department must begin reviewing past labor condition applications under Section 3(b) of the executive order.
- The DC Circuit ruling: a decision upholding the fee would conflict with the Massachusetts ruling. Borderless notes that conflicting court conclusions leave open the possibility of Supreme Court review.
- A final $103,265 rule: DHS must publish one before that fee can apply.
- Early March 2027: the usual start of H-1B registration for FY2028.
- September 21, 2027: the extended proclamation expires unless renewed.
H-1B $100,000 Fee: Frequently Asked Questions
Is the $100,000 H-1B fee being collected right now?
No. USCIS is complying with the court order that vacated the fee guidance after the First Circuit declined to pause it on July 24, 2026. DHS says it still plans to collect the payment if the order is lifted.
Does the $100,000 fee apply to H-1B extensions or transfers?
No, as long as the extension, amendment, or change of status is granted while the worker is inside the US. USCIS also says the proclamation does not change fees for H-1B renewals.
Do F-1 OPT students switching to H-1B have to pay $100,000?
Not if the change of status is approved while they are inside the US. The payment targets petitions for people outside the US who do not hold a valid H-1B visa.
Can employers get back a $100,000 fee they already paid?
There is no clear answer yet. The USCIS pages cited here do not address refunds, and Fragomen noted after the July 24 ruling that "it is not yet clear" how the decision affects employers who already paid.
What is the $103,265 H-1B fee?
It is a DHS proposed rule announced on August 24, 2026 that would add a $103,265 fee to all cap-subject H-1B petitions, but not to cap-exempt petitions, such as those filed by universities and certain nonprofit or governmental research organizations. It is not final.
How much is the $100,000 H-1B fee in Indian rupees?
About ₹96 lakh, at ₹95.98 per US dollar derived from ECB reference rates on September 29, 2026. The exact figure moves with the exchange rate.
When does the extended $100,000 H-1B proclamation expire?
At 12:00 a.m. Eastern Daylight Time on September 21, 2027, unless it is extended again.
How we checked this: every date and figure above was verified against the linked sources on September 30, 2026. Sources: White House proclamation, executive order, and fact sheet (Sept 18, 2026); USCIS H-1B page (updated Sept 21, 2026), H-1B FAQ, cap season page, and FY2025 H-1B characteristics report; DHS proposed fee release (Aug 24, 2026); Fragomen (July 24, 2026); Yale OISS (Sept 23, 2026); Borderless (Sept 29, 2026); Reddy Neumann Brown; NFAP via The Tribune (Dec 1, 2025); ECB reference rates (Sept 29, 2026). This article will be updated as the courts and DHS act.
