Federal Court Vacates $100,000 H-1B Fee: What It Means for Employers (June 2026)
In a major victory for employers and international talent, a federal court has struck down the controversial $100,000 fee on certain new H-1B petitions. This article is for HR professionals, recruiters, and international candidates seeking clarity on the current H-1B fee structure.
TL;DR / The Bottom Line
The $100,000 fee implemented in late 2025 has been completely vacated. Employers no longer need to pay this prohibitive fee for new H-1B petitions for beneficiaries outside the US. The Department of Homeland Security has agreed to comply with the ruling immediately.
Table of Contents
The Ruling: State of California v. Mullin
On June 8, 2026, a U.S. District Court in Massachusetts issued a landmark order in the case of State of California v. Mullin. The court vacated the requirement that imposed a $100,000 fee on specific H-1B petitions.
The controversial fee, introduced by the administration in September 2025, targeted new H-1B petitions filed for individuals located outside the United States. Data showed a 68% drop in overseas H-1B filings during the 8 months the fee was active. It was heavily criticized by tech companies, startups, and universities as prohibitive and damaging to US competitiveness.
The judge ruled that the fee constituted an unlawful tax implemented without proper congressional approval, effectively stripping the Department of Homeland Security (DHS) of the authority to enforce it.
Current Status and Next Steps
Immediate Relief
DHS has stated that while they disagree with the court's decision and are reviewing their legal options, they will comply with the order. This means the fee requirement is suspended immediately.
For employers planning to hire international talent from abroad, this removes a massive financial barrier. Companies that had paused their overseas H-1B hiring plans due to the six-figure fee can now resume their standard recruitment pipelines. Over 12,000 deferred petitions are expected to be filed in the coming months.
It remains to be seen if the government will appeal the ruling, but for the current FY 2027 cap season and beyond, the fee is no longer a factor unless an appellate court reinstates it.
Action Item for Employers
If you delayed filing an H-1B petition due to the $100,000 fee, consult with your immigration counsel immediately to resume processing. Keep a close watch on USCIS policy updates in case of an appeal.
Free 2026 H-1B Fee Calculator
Download our updated Excel calculator to estimate your total exact USCIS filing fees for FY 2027 (now omitting the $100k fee).
Frequently Asked Questions
What was the $100,000 H-1B fee?
Implemented in September 2025, the rule required certain employers to pay a $100,000 fee for new H-1B petitions filed for individuals outside the U.S. It did not apply to change-of-status petitions for F-1 students already inside the US.
Will I get a refund if I already paid the fee?
The court order did not explicitly mandate retroactive refunds. Employers who paid the fee between September 2025 and June 2026 should consult their immigration attorneys regarding potential litigation for refunds.
Can the government appeal the decision?
Yes. DHS and the DOJ have the right to appeal the district court's decision to a higher appellate court. However, until a stay or reversal is issued, the fee cannot be collected.
Conclusion & Forward Outlook
The vacating of the $100,000 H-1B fee is a monumental relief for the global talent pipeline. It restores the ability of US employers to competitively recruit the best and brightest from overseas without bearing an unprecedented financial penalty.
Next Step: Contact your immigration legal team to immediately un-pause any overseas H-1B consular processing cases that were halted due to the fee.
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