A three-judge panel of the US Court of Appeals for the First Circuit ruled on July 24, 2026 that the Trump administration cannot collect a $100,000 fee on new H-1B petitions while its appeal of a lower-court ruling proceeds. The panel found the government had not shown it was likely to win on the merits of that appeal, so a June 8, 2026 district court order striking the fee down stays in force. USCIS had, in fact, been collecting the fee again since mid-June under a separate stay the district court itself granted — the First Circuit's order ends that reinstatement, so employers filing new H-1B petitions now face the normal filing-fee range rather than the six-figure surcharge, at least until the underlying appeal is decided.
Background
The fee traces back to a presidential proclamation issued in September 2025, which imposed a one-time $100,000 charge on new H-1B petitions on top of standard USCIS filing fees. California and 19 other Democratic-led states sued in the US District Court for the District of Massachusetts, arguing the administration had no authority to impose what amounted to a new tax without congressional approval. On June 8, 2026, US District Judge Leo Sorokin agreed, ruling that the fee "imposes a tax on H-1B petitions without the requisite delegation by Congress" and vacating the policy outright. The administration filed a notice of appeal on June 11, and on June 12, Judge Sorokin granted the government's request for a stay of his own ruling pending the First Circuit's review — reinstating the fee for roughly six weeks while the appeal was pending.
What exactly changed
The First Circuit's July 24 order — in State of California v. Mullin, 1st Cir. No. 26-01699 — denied the government's motion to keep that stay in place for the rest of the appeal. To win, the government had to show it was likely to succeed on the merits; the panel found it had not met that bar. That ends the reinstatement Judge Sorokin granted on June 12, so his original order vacating the fee is back in effect and the fee is no longer being collected. This is not a final ruling on whether the $100,000 fee is lawful — that question is still working its way through the appeal — but it does mean the fee cannot be enforced while that plays out. Separate challenges to the same fee are also pending before the US District Court for the Northern District of California and the US Court of Appeals for the District of Columbia Circuit, so the administration has more than one avenue left to try to revive it.
Timeline so far
- September 2025: presidential proclamation imposes a $100,000 fee on new H-1B petitions.
- June 8, 2026: US District Judge Leo Sorokin rules the fee unlawful and vacates it.
- June 11-12, 2026: the government appeals and Judge Sorokin stays his own ruling, reinstating the fee while the appeal is pending.
- July 24, 2026: the First Circuit denies the government's motion to keep that stay in place — the fee is blocked again.
- Ongoing: the administration's appeal on the merits continues at the First Circuit, alongside separate cases in the Northern District of California and the DC Circuit.
Who it affects
This matters most for two groups: US employers budgeting for new H-1B hires, and workers abroad who need a visa stamped at a US consulate before starting a new H-1B job. Petitions filed between mid-June and July 24, while Judge Sorokin's stay was in effect, were subject to the $100,000 fee; petitions filed from July 24 onward are not, unless a later ruling changes that again. Massachusetts Attorney General Andrea Joy Campbell, whose office was among the plaintiffs, said the ruling "protects the integrity of the H-1B visa program as a tool to address severe labor shortages in vital industries like education, healthcare, and medical research." California Attorney General Rob Bonta, representing the lead plaintiff state, said the fee "creates unnecessary financial burdens on California public employers," among others who rely on the program.
What this means in practice
For now, employers sponsoring new H-1B workers should pay the standard USCIS and consular fees rather than the $100,000 charge, but should keep an eye on the appeal, since a later ruling could still revive the fee for future petitions. Workers and employers with cases at US consulates abroad, where the fee has specifically applied, are the group most directly exposed to any reversal. Anyone weighing a US relocation on an H-1B can check GoMate's [United States country guide](/country-guides/united-states) for the wider visa and entry picture while this litigation continues.
Current status
As of July 24, 2026, the $100,000 H-1B fee is blocked and not being collected. It had briefly been reinstated from mid-June to July 24 under a stay the district court granted the government; the First Circuit ended that reinstatement by declining to extend it. The underlying appeal on the merits has not yet been decided.
What is not yet confirmed
The First Circuit has only ruled on whether to pause the lower court's order, not on whether the $100,000 fee is ultimately lawful. That merits appeal is still pending, as are separate cases in the Northern District of California and the DC Circuit, so the fee's status could change again. It is also not yet clear whether employers who paid the fee during the mid-June-to-July-24 window have any path to a refund.
Key Takeaway
The $100,000 H-1B fee is blocked again after the First Circuit declined to let a district-court stay continue during the government's appeal — but it was actually being collected for about six weeks before this ruling, and the underlying legal fight is not over.