What Happens When the H-1B $100K Proclamation Expires on September 20, 2026?

If you sponsor H-1B workers or currently hold H-1B status, September 20, 2026 is a date worth understanding clearly. That is when Presidential Proclamation 10973, the executive order that imposed a $100,000 supplemental fee on certain H-1B petitions, expires by its own written terms. But expiration does not mean the issue is over. It means the landscape shifts, and the shift comes with variables that employers and workers need to understand before assuming anything.

This post explains what the proclamation required, where the courts left things, what actually happens when September 20 arrives, and what the DHS proposed rule published days before that date means for employers planning FY2028 filings.

What Was Presidential Proclamation 10973?

President Trump signed Proclamation 10973 on September 19, 2025, and it took effect at 12:01 a.m. EDT on September 21, 2025. The core requirement was a $100,000 supplemental fee on new H-1B petitions filed for beneficiaries who were outside the United States at the time of filing or whose change of status or extension of stay had been denied, requiring them to apply for a visa abroad.

The proclamation did not apply to:

• Extensions of stay or amendments for workers already inside the United States
• Change of status petitions where the beneficiary was physically present in the US at the time of filing
• Cap-exempt employers such as universities, nonprofit research organizations, and government research entities, though even this generated significant early confusion

By its own terms, Proclamation 10973 was a temporary, 12-month restriction set to expire on September 20, 2026, unless extended, renewed, or reissued.

What the Courts Did Between September 2025 and July 2026

The proclamation faced immediate legal challenges from employers, universities, labor groups, and state attorneys general. The most consequential case was California v. Mullin, filed in the U.S. District Court for the District of Massachusetts.

On June 8, 2026, the district court vacated the agency guidance implementing the fee, concluding that it functioned as a tax the Executive lacked authority to impose and that its rollout violated the Administrative Procedure Act. Days after that ruling, an administrative stay briefly reinstated the fee while the government pursued an appeal. On July 24, 2026, the U.S. Court of Appeals for the First Circuit denied the government's motion to stay the district court judgment, lifting the administrative stay and allowing the vacatur to stand while the government's appeal proceeds.

As of late August 2026, USCIS had agreed to stop collecting the fee while the First Circuit appeal remains pending. The fee is currently blocked. The appeal has not yet been decided.

What Happens on September 20, 2026?

Three outcomes are possible when the proclamation's expiration date arrives, and understanding each one matters.

For petitions filed and adjudicated inside the current window, exposure is limited even if a higher court later restores the fee, and even more so if the proclamation simply lapses. For hires with a longer runway, filings that will still be pending or cannot realistically be submitted before the window closes, the risk is real and should be priced in.

The most likely outcome, absent administration action, is that the proclamation lapses. But "most likely" is not "certain," and an employer planning a filing that will be pending on September 21 and beyond cannot treat expiration as guaranteed relief.

If you have an H-1B petition for a worker currently outside the United States and you are unsure how any of these scenarios affect your timeline, speaking with an experienced H-1B visa lawyer before September 20 is the most practical step available to you right now.

What the DHS $103,265 NPRM Means and Why It Matters

The proclamation fight did not end the administration's push for a large H-1B fee. It simply changed the legal vehicle. On August 25, 2026, the Department of Homeland Security published a notice of proposed rulemaking that would add a $103,265 fee to every H-1B cap-subject petition, payable at the time of filing, on top of every other fee an employer already pays. 

Key distinctions between the proclamation and the NPRM:

• The proclamation was imposed through executive action under INA Section 212(f). The NPRM proceeds through formal notice-and-comment rulemaking and grounds the charge in DHS's fee-setting authority under 8 USC 286(m).
• The proclamation applied to cap-exempt filings for overseas beneficiaries. The proposed NPRM fee applies only to cap-subject petitions; it does not apply to petitions filed by universities, nonprofit research organizations, or government research organizations. 
• Public comments are due on or before September 24, 2026. If finalized, the rule would impact cap-subject petitions filed for FY2028 in the spring 2027 H-1B lottery process for an October 1, 2027 start date.

The proposed fee is not currently in effect. Before it becomes a reality, DHS must evaluate public comments and determine whether to publish a final rule establishing an effective date and transition provisions. Legal challenges are widely anticipated the moment a final rule issues. 

What Employers and H-1B Workers Should Watch For

Between now and the end of 2026, four things deserve close attention:

• September 20 itself: Does the administration allow the proclamation to lapse, or does a new executive action appear before or on that date?
• The First Circuit appeal: A ruling before September 20 could either close the proclamation chapter entirely or complicate it. A ruling after expiration matters less but could set precedent for future executive fee actions.
• The NPRM comment deadline is September 24, 2026: Employers and industry groups have a narrow window to submit formal opposition or support through Regulations.gov under docket USCIS-2026-0298.
• Any Supreme Court application: The government retains the option to seek emergency relief from the Supreme Court if the First Circuit does not act favorably before the proclamation expires.

For workers currently in H-1B status inside the United States, the expiration of the proclamation has limited direct impact; it never applied to extensions of stay or amendments for beneficiaries already present in the country. If you are navigating an H-1B and considering pathways to permanent residence, our earlier post on changing status from H-1B to a marriage-based green card covers that process in full.

Employers looking at alternatives to H-1B for intracompany transfers, particularly those managing international employees in executive or managerial roles, should also review the L-1A visa as part of their workforce strategy under current conditions.

Conclusion

September 20, 2026 is not a resolution. It is a transition point in a policy fight that has been moving through courts, agencies, and the White House for twelve months. The $100,000 proclamation may lapse. The administration may extend it. A new $103,265 rule may eventually replace it. Any of these outcomes is possible before the end of 2026.

What does not change is the requirement to make filing decisions based on current law as it stands today, not on what you expect will happen by the time the petition is adjudicated. If your company has H-1B petitions pending for overseas beneficiaries, or if you are an H-1B worker whose situation involves international travel or consular processing, the window before September 20 is the time to get specific legal guidance rather than wait.

The immigration attorneys at Salinas Law Firm advise employers and H-1B workers in Houston and across Texas on petition timing, travel risk, and the practical impact of executive and regulatory changes on individual cases. Contact us to discuss your situation before the September 20 date arrives.

This article is provided for general informational purposes only and reflects the law and published guidance as of September 3, 2026. The H-1B proclamation and related rulemaking discussed above are the subject of ongoing litigation and executive action and may change without notice; this article will not necessarily be updated to reflect those changes. Nothing here is legal advice, and reading it does not create an attorney-client relationship with Salinas Law Firm or any of its attorneys. Do not make filing, travel, or employment decisions in reliance on this article. Prior results do not guarantee a similar outcome. Consult a licensed attorney about your specific circumstances.