A federal judge in California just struck down the Trump administration’s second attempt to slap a $100,000 fee on H-1B visa petitions. That’s huge news if you’re an employer sponsoring H-1B workers, or a foreign national counting on H-1B status to stay and work in the U.S. Our team gets calls about this daily. Filing petitions? Waiting on approval? Here’s what changed, and what you need to do next.
Background: What This Means
Back in September 2026, the administration tried to revive an old policy: a $100,000 fee tacked onto new H-1B petitions. Employers and advocacy groups pushed back hard, filing suit in the U.S. District Court for the Northern District of California. In October 2026, Judge Haywood Gilliam agreed with them. He ruled the policy “arbitrary and capricious” under the Administrative Procedure Act. Why? The government skipped notice-and-comment rulemaking — the process that lets the public weigh in on federal rules before they take effect. Skipping that step isn’t just sloppy. It’s illegal. For official updates, check uscis.gov and justice.gov/eoir for court filings.
So where does that leave us? The $100,000 fee is blocked nationwide as of October 12, 2026, while this case plays out. But don’t celebrate too hard. This ruling doesn’t settle the underlying fight. The government can appeal to the Ninth Circuit, and things can shift again fast. Treat this as breathing room, not a finish line.
How This Affects Employers and H-1B Workers
For now, employers who sponsor H-1B specialty occupation workers do not need to pay the $100,000 fee when filing new petitions. This applies to cap-subject petitions, change-of-status filings, and petitions filed by employers across the country, not just in California. Companies that paused hiring plans or delayed H-1B filings because of the fee may resume those plans, subject to normal USCIS processing times and requirements.
Workers who were worried about losing job offers because employers could not afford the fee may see renewed sponsorship interest. However, because the ruling may be appealed, employers should still plan for the possibility that a fee, in some form, could return later. Companies that also use other visa categories, such as L-1A visas for managers and executives or L-1B visas for specialized knowledge workers, should review their overall sponsorship strategy considering this ruling and the possibility of further changes.
What You Should Do Now
- Do not assume the fee is gone forever. The ruling can be appealed. Track updates from uscis.gov and travel.state.gov for official guidance.
- Review pending and planned H-1B filings. If your company delayed a petition because of the fee, confirm current USCIS filing requirements before submitting.
- Keep records of any fee payments already made. If your company paid the fee before the ruling, ask about refund procedures through USCIS.
- Consult with immigration counsel before making hiring or relocation decisions that depend on this fee remaining blocked.
- Watch for Federal Register notices. Any future rule would likely go through notice-and-comment, giving the public a chance to respond before it takes effect.
How TEZ Law Firm Can Help
TEZ Law Firm advises employers and individuals on H-1B petitions, status changes, and related employment-based immigration filings. The firm can review current USCIS guidance, help prepare and file petitions, and discuss how this ruling may affect a pending or planned case. TEZ Law Firm also handles related matters such as employment-based visas generally and family-based immigration for workers who also want to sponsor relatives.
Frequently Asked Questions
Is the $100,000 H-1B fee still in effect as of October 12, 2026?
No. As of October 12, 2026, the fee is blocked nationwide following the ruling by Judge Haywood Gilliam in the Northern District of California. The decision applies across the United States, not only in California.
Can the government bring back the $100,000 H-1B fee?
It is possible. The government may appeal the ruling, or it may try to issue a new rule through proper notice-and-comment rulemaking under the Administrative Procedure Act. Employers should monitor official sources such as uscis.gov for updates.
Do I need to pay the fee for a pending H-1B petition?
Based on the current ruling, the fee is not required while the court order stands. Employers should check the most recent USCIS guidance before filing, since the legal situation may change during ongoing litigation.
What is notice-and-comment rulemaking?
Notice-and-comment rulemaking is a legal process required for many federal agency rules. The agency must publish a proposed rule, allow the public to submit comments, and consider those comments before issuing a final rule. The court found the September 2026 proclamation skipped this process.
Will this ruling affect other employment-based visas, like L-1 or EB visas?
This specific ruling addresses the H-1B fee proclamation. It does not directly change requirements for other visa categories, such as EB-2 national interest waiver cases or EB-3 and PERM labor certification cases. Employers using multiple visa categories should still monitor broader immigration policy changes.
Immigration policy around H-1B fees may continue to shift while litigation proceeds. If your company or your own case depends on this fee staying blocked, it may help to speak with an immigration attorney about your specific situation. You can schedule a consultation with TEZ Law Firm through the firm’s contact page to discuss your H-1B filing or other immigration needs.
This article is general information, not legal advice, and reading it does not create an attorney-client relationship. Laws and agency practices change; contact TEZ Law Firm (West Covina, California) at 626-888-6856 or [email protected] about your situation. Prior results do not guarantee a similar outcome.