Federal Court Blocks $100,000 H-1B Fee: October 2026 Immigration Policy Update

On September 30, 2026, a federal district court in California issued an order blocking USCIS, U.S. Customs and Border Protection (CBP), and the U.S. Department of State from enforcing the $100,000 H-1B payment requirement established under Presidential Proclamation 10973 and extended by Proclamation 11069. The court ruled that agencies must comply with the rulemaking requirements of the Administrative Procedure Act (APA) before the fee can be enforced. This California ruling is the second federal court decision to block the payment requirement. A federal district court in Massachusetts had previously issued a similar block, and that decision is currently on appeal before the U.S. Court of Appeals for the First Circuit. The case in California — Global Nurse Force v. Trump — was brought by a coalition of employers, labor organizations, schools, healthcare providers, and religious organizations. For employers sponsoring H-1B workers, the practical impact is immediate: the $100,000 proclamation-based payment is not currently required, including for H-1B workers abroad who need consular processing or admission at a U.S. port of entry. USCIS has noted on its website that if the court order is later lifted, it intends to collect the payment retroactively. Importantly, this court order does not affect the separately proposed $103,265 H-1B cap-subject petition fee being pursued through DHS's formal rulemaking process. That fee — which closed its public comment period on September 24, 2026 — has not yet resulted in a final rule and is not currently in effect. Employers should continue monitoring litigation developments. A case management conference is scheduled for October 27, 2026, in the California court. Given the active appellate proceedings in Massachusetts and the continuing rulemaking on the separate $103,265 fee, the legal landscape for H-1B petitions remains subject to change.