Is the $100,000 H-1B Fee Still Blocked? What Employers Need to Know Right Now

On July 24, 2026, the U.S. Court of Appeals for the First Circuit denied the federal government's request to restore the $100,000 H-1B fee while its appeal continues. That is the headline. What most employers still do not understand are the three layers of uncertainty sitting underneath it, each one capable of changing the situation before the end of September.

What Is the $100,000 H-1B Fee and Where Did It Come From?

On September 19, 2025, President Trump signed Proclamation 10973, imposing a $100,000 fee on employers filing new H-1B petitions for foreign workers who required consular processing, meaning workers coming from outside the United States rather than adjusting status from within. The fee applied on top of existing USCIS filing fees and took effect immediately.

The H-1B visa program allows U.S. employers to hire foreign nationals for specialty occupations requiring a bachelor's degree or higher. According to USCIS , the program operates under an annual cap of 65,000 regular visas plus 20,000 for holders of U.S. advanced degrees. For many industries in Houston and across Texas, including technology, healthcare, and engineering, H-1B workers fill critical roles that domestic hiring alone does not cover.

The $100,000 fee was not approved by Congress. It was created by executive action alone, which is precisely the legal argument that eventually unraveled it in federal court.

What Has Actually Happened in Court Since September 2025?

This case moved through multiple courts across multiple decisions in less than a year. Understanding each step matters because the case is still active and future rulings could reverse the current status.

The $100,000 H-1B fee is not in effect. Employers filing new H-1B petitions that would previously have required the fee should not pay it unless USCIS or a court order explicitly reinstates the requirement. Monitor USCIS guidance closely because this can change on short notice.

Why Is This Victory Less Complete Than It Looks?

The July 24 ruling is genuinely good news for employers. But the legal situation underneath it has three critical layers that most coverage is not explaining clearly.

Layer One: The Proclamation Is Still Valid

The court vacated the implementing policy, which is the agency mechanism that told USCIS how to collect the fee. The court did not declare Proclamation 10973 itself void. The Proclamation remains on the books. If the government finds a different legal mechanism to implement it, it could attempt to reinstate the fee without needing the First Circuit to reverse the current ruling.

Layer Two: The Appeal Is Still Pending

The First Circuit's July 24 order is an interim decision about a stay request, not the final word on the appeal. The court still needs to rule on whether the district court's June 8 judgment was correct on the merits. If the First Circuit reverses the district court, the fee could be reinstated retroactively from the date of that ruling.

Layer Three: The September 20 Expiration Date

By its own terms, Proclamation 10973 was written as a 12-month restriction expiring on September 20, 2026. That is now weeks away. The critical question is not just whether the fee comes back before September 20. It is whether the Administration extends, renews, or reissues the Proclamation on or after that date, potentially on a different legal basis designed to survive the arguments that defeated the first version.

The current blocked status does not mean the fee is permanently gone. The First Circuit has not issued its final ruling. The Proclamation has not been declared void. And the Administration has signaled it will continue pursuing immigration enforcement priorities through executive action. This situation requires active monitoring, not a one-time check.

What About Employers Who Already Paid the $100,000?

This is the question most guides skip and it is the one that matters most to companies who paid the fee between September 2025 and July 2026.

The June 8 court order vacated the implementing policy but did not address refund mechanics. Courts have not ordered refunds. The federal government has not offered refunds. Based on the pattern in related tariff litigation following the Supreme Court's Learning Resources decision, the government did not issue refunds until specifically ordered to do so by a court. The same is likely here.

Retain complete records of every payment made under Proclamation 10973, including the petition, the payment receipt, the case number, and all correspondence with USCIS related to the fee. Speak with immigration counsel now about whether to pursue recovery through litigation or to wait for court orders to address refunds directly. Acting without a legal strategy in place risks missing deadlines or weakening your position.

What Does This Mean for Texas and Houston Employers Specifically?

Texas has one of the highest concentrations of H-1B-dependent industries in the country, including technology, petrochemical and energy engineering, healthcare, and financial services. The fee, at $100,000 per petition, was specifically designed to discourage outsourcing-model companies from using the program, but in practice it created significant burden for Texas employers across multiple sectors who rely on H-1B workers for specialized roles with no comparable domestic pipeline.

• Healthcare employers in Houston lost access to international medical specialists and nurses at a time when physician shortages across Texas remained acute
• Engineering and energy firms in the Houston energy corridor could not afford the per-petition cost for multiple international hires across project-based teams
• Technology companies with Houston offices saw international candidates accept offers from competitors with cap-exempt university or nonprofit affiliations
• Smaller employers who could not absorb the $100,000 cost per hire simply stopped pursuing H-1B candidates entirely, creating hiring gaps that remain unfilled

With the fee currently blocked, Texas employers can resume H-1B planning for consular processing cases. The risk is building hiring plans around a fee block that could be reversed, which is why active legal monitoring matters more right now than it has in years.

H-1B Planning in an Uncertain Legal Environment

Salinas Law Firm has represented Houston employers and H-1B workers through this entire period of fee changes and court rulings. Our team can review your current petitions, advise on refund eligibility, and help you plan for September 20 and beyond.

What Should Employers Do Right Now?

1. Do not pay the $100,000 fee on any new petitions. As of July 24, 2026, the fee is not collectible and USCIS should not be requiring it. If you receive a request for the fee, contact an immigration attorney before paying
2. Verify USCIS guidance directly before filing any H-1B petition that would have previously been subject to the fee. USCIS guidance on the fee's status must align with the current court posture
3. Gather payment records immediately if your company paid the fee between September 2025 and July 2026. Organize receipts, petition documents, and case numbers in a single file
4. Consult an immigration attorney before September 20 about what the Proclamation's expiration means for your pending and planned H-1B cases. The legal landscape will shift again around that date
5. Do not cancel pending petitions based on the assumption that the fee is gone permanently. The First Circuit has not issued its final appellate ruling, and the government could still prevail

What Happens if the Government Tries to Reimpose the Fee After September 20?

The First Circuit ruled against the fee based on a lack of legal authority rather than on a procedural mistake. That distinction matters significantly. A procedural mistake can be corrected and the policy reissued. A ruling based on lack of authority means the government would need to find a different statutory basis entirely before reimposing a fee of this size through executive action.

That does not make reimposition impossible. Congress could pass legislation authorizing the fee, which would change the legal calculus entirely. Or the Administration could attempt to frame a new proclamation on a different legal theory that the courts have not yet rejected. Either scenario is possible before or after September 20, and Texas employers should have legal counsel who is tracking these developments in real time rather than waiting for news coverage to catch up.

For broader context on how H-1B rejections and procedural outcomes affect workers and employers, see the Salinas Law Firm guide on what happens if your H-1B visa application gets rejected and the steps available when a petition does not go as expected.

What Documents Should Employers Keep If They Paid the H-1B Fee?

Employers that paid the $100,000 H-1B fee should keep a complete record of every payment and the petition connected to it. That record should include the payment receipt, petition details, case number, filing date, and correspondence with USCIS about the fee. Keeping these documents together will make it easier to evaluate potential recovery options if a court later addresses refunds.

Employers should also preserve records showing why the petition required the fee at the time it was filed. Immigration counsel can use those records to determine how the payment fits within the evolving court decisions and any future refund process. Do not discard payment records simply because the fee is currently blocked.

What Happens If the H-1B Fee Status Changes Again?

Employers should not assume that today's blocked status will remain unchanged through the end of the litigation. A future appellate ruling, new court order, USCIS guidance, or executive action could alter the requirements for affected H-1B petitions. Companies planning international hires should therefore review the status before filing rather than relying on an earlier decision or filing strategy.

If the government attempts to reinstate the fee, employers will need to understand exactly which petitions are affected and when the new requirement takes effect. That distinction can matter when companies are coordinating start dates, consular processing, hiring budgets, and petition preparation. Keeping an active legal review process in place can reduce the risk of making expensive filing decisions based on outdated information.

The Bottom Line for Employers

The $100,000 H-1B fee is blocked right now. That is real and meaningful relief for employers who were facing it. But the case is still in the appeals court, the Proclamation expires in weeks, and nobody has committed to refunding companies that already paid. The single most expensive mistake an employer can make right now is treating a blocked fee as a permanently resolved issue.

Salinas Law Firm advises Houston-area employers on H-1B petitions, visa strategy, and responding to changing immigration requirements. If your company has active H-1B workers, pending petitions, or paid the $100,000 fee during the enforcement period, our team can review your situation and prepare you for what comes next. Call 713.518.1711 or schedule a consultation online.