USA, August, 2026 - Employers sponsoring H-1B workers have a reason to breathe easier, at least for now. The U.S. Court of Appeals for the First Circuit has refused to reinstate the controversial $100,000 H-1B fee, leaving it vacated while the government's appeal continues. Berd & Klauss, PLLC, a New York City immigration law firm serving employers and foreign national employees, is helping clients understand what this really changes and what still could.

How We Got Here

In September 2025, a Presidential Proclamation imposed a one-time $100,000 payment requirement on new H-1B petitions for beneficiaries located outside the United States and subject to consular processing. A coalition of 20 states, led by California and Massachusetts, sued, arguing the fee amounted to an unauthorized tax and violated the Administrative Procedure Act.

On June 8, 2026, the U.S. District Court for the District of Massachusetts agreed and vacated the fee in its entirety. The government asked for a stay to keep collecting the fee during its appeal. On July 24, 2026, the First Circuit said no — finding the government had not shown it was likely to win on the merits.

"Congress never clearly gave the executive branch the power to attach a six-figure price tag to an H-1B petition," said Patrick Klauss from Berd & Klauss, PLLC. "The courts have now said that twice. That matters for every employer who held off on filing because of the cost."

What This Means Today

• The $100,000 fee is not currently enforceable. USCIS should not be assessing it on covered H-1B petitions.
• Employers only owe standard filing fees for H-1B petitions at this time — no separate $100,000 payment tied to consular processing cases.
• This is not final. The government is expected to keep pursuing its appeal, and the fee's status could change again depending on future rulings.
• Employers who already paid the fee should keep detailed records, since the court's finding that the fee functions as an unlawful tax could support a future refund claim.
• Other rules tied to H-1B selection remain unaffected by this ruling — this decision is specific to the $100,000 fee itself.

Berd & Klauss, PLLC's Guidance for Employers

Given how quickly this case has moved — from proclamation, to vacatur, to stay, to stay denial, in less than a year — Berd & Klauss, PLLC is urging employers not to make sponsorship decisions based on outdated information. The firm recommends:

1. Confirming current fee requirements with counsel before filing any H-1B petition involving consular processing, since USCIS guidance can lag behind court rulings
2. Revisiting H-1B candidates who were paused or deprioritized due to the fee, now that it is not currently in effect
3. Documenting any $100,000 payments already made, in case the litigation ultimately supports refund claims
4. Staying alert for further developments, since the underlying appeal has not been decided on the merits and the fee's legal status remains contested

"Employers spent months treating this fee as a fixed cost of doing business," said Patrick Klauss from Berd & Klauss, PLLC. "Right now, it isn't one. We're helping clients act on that before the window potentially closes again."

About Berd & Klauss, PLLC

Berd & Klauss, PLLC is a full-service immigration law firm representing clients before USCIS, the Department of State, EOIR, and federal courts. The firm assists with family visas, business immigration, deportation defense, and citizenship applications.