Federal Court Temporarily Reinstates USCIS Authority to Collect $100,000 H-1B Fee Pending Appeal

In another rapid development surrounding the controversial $100,000 H-1B consular processing fee, a federal court has temporarily allowed U.S. Citizenship and Immigration Services (USCIS) to continue collecting the fee while the government’s appeal moves forward.

Employers and foreign workers should prepare for continued uncertainty as the litigation unfolds.

What Happened?

On June 8, 2026, a federal district court in Massachusetts struck down USCIS’s implementation of the $100,000 H-1B fee, finding significant legal issues with the policy. However, just four days later, on June 12, 2026, the same court temporarily paused its ruling after the government filed an appeal with the U.S. Court of Appeals for the First Circuit.

As a result, USCIS currently retains the authority to continue collecting the $100,000 fee for qualifying H-1B petitions involving consular notification while the appellate court reviews the case.

The government must formally request a stay from the First Circuit by June 18, 2026, for the temporary reinstatement to remain in effect.

The appeal is pending in State of California, et al. v. Mullin, et al., No. 26-1699 (1st Cir. June 12, 2026).

Background on the $100,000 H-1B Fee

The fee originated from a presidential proclamation issued on September 19, 2025, which imposed a substantial payment requirement on certain H-1B petitions requiring consular processing abroad. The policy immediately generated significant concern among employers, universities, healthcare systems, and technology companies that rely heavily on foreign talent.

Critics have argued that the fee effectively functions as a tax that Congress never authorized. The Massachusetts district court agreed, concluding that the executive branch exceeded its authority and that the policy violated the Administrative Procedure Act (APA).

However, this legal battle is far from over.

What Does This Mean for Employers Right Now?

For the moment:

USCIS may continue requiring the $100,000 fee for H-1B petitions filed for, or only approvable through, consular notification.
Employers should continue budgeting for the possibility that the fee will apply to upcoming filings, unless a court orders otherwise.

Organizations with international employees who require visa stamping abroad may be particularly affected, especially if travel plans depend on obtaining an H-1B visa at a U.S. consulate.

What Happens Next?

The First Circuit Court of Appeals will soon decide whether to allow USCIS to continue collecting the fee during the appeal process.

Two possible outcomes exist:

If the First Circuit grants a stay:

USCIS will likely continue collecting the $100,000 fee while the appeal is litigated.

If the First Circuit denies a stay:

The district court’s June 8 order could take effect again, temporarily preventing USCIS from collecting the fee.

Further appeals remain possible, including eventual review by the U.S. Supreme Court, particularly because different federal courts have already reached varying conclusions regarding the government’s authority to impose the fee.

Looking Ahead

The legal status of the $100,000 H-1B fee remains highly fluid. While employers briefly received relief when a federal court invalidated the policy, that relief has now been temporarily suspended pending appellate review.

Employers sponsoring H-1B workers should closely monitor developments, review filing strategies, and remain prepared for additional changes in the coming weeks. Until a final court decision is issued, uncertainty will continue to define this controversial immigration policy.

The Law Offices of Jacob Sapochnick is monitoring these develops and will provide updates when they become available.

Contact Us. If you would like to schedule a consultation, please text 619-483-4549 or call 619-819-9204.

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