Trump $100K H-1B Fee Explained: Legal Battle and What Happens Now

The $100K rule has been removed. A federal court struck down Trump's $100,000 H-1B fee on June 8, 2026 and employers can now file new petitions without paying it. But how did we get here, who was affected along the way and is it really over? This blog breaks down the full story, from when the rule was signed to what it means for you today.

What Is the H-1B Visa?

The H-1B visa allows US employers to hire foreign nationals for specialty occupations that require at least a bachelor's degree. Think software engineers, IT professionals, researchers, doctors and healthcare specialists. The US issues 85,000 H-1B visas every year through a lottery system.

Indian professionals account for nearly three quarters of all H-1B visas issued. For most Indian tech workers the H-1B has long been the primary path to working in the United States.

What Did Trump Do?

On September 19, 2025, President Trump signed a Presidential Proclamation titled 'Restriction on Entry of Certain Nonimmigrant Workers.' It introduced a $100,000 fee for each new H-1B petition filed on behalf of foreign nationals seeking to enter the United States.

Before this rule, H-1B employers typically paid between $2,000 to $8,000 in total government fees. The new rule represented an increase of more than 2,000 percent.

Trump's administration framed the fee as a measure to prevent 'wage dumping' and fraud. The proclamation described H-1B abuse as a national security threat, citing misuse by outsourcing firms to replace American workers with cheaper foreign labour.

Who Was Affected and Who Was Not?

The fee only applied to new H-1B petitions filed on or after September 21, 2025 for foreign nationals who were outside the United States. This is an important distinction:

• Workers already in the US on a valid H-1B were NOT affected
• Straightforward extensions with the same employer were classified as renewals and were  NOT subject to the fee
• Anyone whose petition was filed before September 21 was NOT required to pay
• New petitions filed after September 21 for workers outside the US were subject to the full  $100,000 fee
• The FY 2027 H-1B lottery was expected to be subject to the fee if courts had not intervened

 Complete Timeline: From Signing to Struck Down

The Legal Battle

The $100,000 fee triggered one of the fastest litigation responses in recent US immigration history. Three separate lawsuits were filed across different federal courts:

1. Chamber of Commerce v. DHS (Washington DC)

The US Chamber of Commerce filed suit in October 2025 arguing that Trump exceeded his executive authority and that the fee directly contradicted fees set by Congress. In December 2025 the DC District Court upheld the fee. The Chamber appealed to the DC Circuit where the case is still pending.

2. State of California et al. v. Trump (Massachusetts)

A coalition of 20 state attorneys general led by California filed suit in Massachusetts. On June 8, 2026, US District Judge Leo Sorokin ruled in their favour. He declared the $100,000 payment to be a tax rather than a regulatory fee. Since only Congress has the authority to levy taxes, the proclamation exceeded executive power. The fee was vacated in its entirety.

3. Global Nurse Force et al. (California)

A separate challenge filed by labour unions and religious groups in the Northern District of California is also pending. This sets up the possibility of three different appellate courts reaching different conclusions.

Where Things Stand Right Now (June 2026)

As of June 13, 2026 the situation is as follows: 

• The Massachusetts federal court has struck down the $100,000 fee nationwide
• USCIS is not permitted to collect the fee while the ruling stands
• Standard H-1B fees of $2,000 to $8,000 apply again for now
• The Trump administration is expected to appeal the Massachusetts ruling
• The DC Circuit case from the Chamber of Commerce is still ongoing
• A circuit split now exists since the DC court upheld the fee and the Massachusetts court       struck it down
• Legal analysts expect this to potentially reach the Supreme Court
• The fee was originally set to expire in September 2026 regardless of court outcomes

What This Means for Indian Professionals

Indian applicants represent approximately 75 percent of all H-1B recipients. The fee, had it remained in effect, would have had an outsized impact on Indian workers and the companies that hire them.

• Small and mid sized Indian IT services firms would have found H-1B sponsorship financially    impossible
• Many employers warned employees on H-1B visas not to travel internationally out of initial fear that reentry would trigger the fee
• The FY 2027 lottery for Indian applicants was under severe threat as employers reconsidered  whether to even file

With the fee now blocked, the immediate pressure has eased. However, Indian professionals should not assume full stability. The legal battle continues and future executive actions remain possible.

Frequently Asked Questions

Q: Do I need to pay $100,000 to get my H-1B right now?

No. As of June 8, 2026 the fee has been struck down by a federal court in Massachusetts. USCIS cannot collect it. Standard H-1B fees apply for now.

Q: If I am already on an H-1B visa, am I affected?

No. The fee only applied to new petitions for workers outside the United States. If you are already in the US on an approved H-1B you are not required to pay anything additional.

Q: Does the court ruling mean the fee is gone forever?

Not necessarily. The Trump administration can appeal the Massachusetts ruling. There are also separate cases in DC and California still being litigated. The fee could return depending on how appeals courts rule. The fee was also originally set to expire in September 2026.

Q: Can my employer ask me to pay the $100,000?

No. US Department of Labor regulations require employers to pay all costs associated with the H-1B petition process. Passing the fee to the employee would violate labour law.

Q: What is a circuit split and why does it matter?

A circuit split happens when different federal appeals courts reach opposite conclusions on the same legal issue. One court upheld the fee; another struck it down. This makes the case a strong candidate for Supreme Court review, which could produce a definitive final ruling

Q: Should I file my H-1B petition now or wait?

Given that the fee is currently blocked, filing now carries lower cost risk. However, always work with a qualified immigration attorney for decisions that affect your status. Bserv can connect you with the right guidance

What Should Employers and Workers Do Now?

The legal environment around H-1B is moving fast. Here is practical guidance:

• File pending H-1B petitions now while the fee is blocked, rather than waiting for further uncertainty
• If you filed and paid the $100,000 fee before the court ruling, monitor government guidance on possible refunds as the court has not yet addressed this
• Employers should not make long-term hiring decisions based solely on the current ruling since the fee could return if the government wins on appeal
• H-1B holders with travel plans should confirm their petition filing date to establish they are not subject to any future reimposition of the fee
• Consult an immigration attorney before filing new petitions, change of employer transfers or anything beyond a straightforward extension

This blog is for informational purposes only and does not constitute legal advice. Immigration rules change frequently. Always consult a qualified US immigration attorney for guidance on your specific situation.