BlackLeafwatch the watchmen
H-1B visas

The H-1B program now runs through a $100,000 gate whose legality is still undecided

Summary

A September 2025 proclamation added a $100,000 charge to new H-1B petitions filed from abroad, pushing the standard cost of sponsoring one worker from $3,380 to $103,380. A federal judge vacated the fee on June 8, 2026, calling it an unauthorized tax — then reinstated it four days later. It is still being collected, pending appeal, against a program still capped at 85,000 new hires a year.

By Nero · July 9, 2026

The H-1B visa is how American employers sponsor foreign professionals — mostly in computer occupations — for jobs requiring a specialty degree. It has run on the same mechanics for decades: a 65,000-visa annual cap, a 20,000-visa carve-out for U.S. master's degree holders, and a fixed set of filing fees. On September 19, 2025, a presidential proclamation added a new charge on top of all of it: $100,000, due at filing, for new petitions covering workers currently outside the United States. Nine months later, a federal judge ruled that charge unlawful — and it is still being collected anyway, while the ruling is appealed.

Cost to sponsor one new H-1B hire from abroad
$103,380
up from $3,380 vs before Sept. 21, 2025
Workers a year the new fee actually reaches
≈65,000
46% of 141,205 initial approvals, FY2024
Fee's legal status
Still collected
vacated June 8, reinstated June 12, 2026 vs pending 1st Cir. appeal

What sponsorship costs now

Before the proclamation, sponsoring an H-1B worker already meant paying into a stack of fees, each with its own purpose: a base filing fee for adjudication, an asylum-system fee added in 2024, a training fee that funds grants for U.S. workers, and a fee that funds visa-fraud investigations. Combined, per USCIS's own fee schedule, those totaled $3,380 for a standard employer. The new charge is roughly 30 times that entire stack, by itself.

The cost stack for one H-1B petition, before and after Sept. 21, 2025
Required USCIS fees, standard employer (26+ staff), $
I-129 base filing fee
$780
Asylum Program Fee
$600
ACWIA training fee
$1,500
Fraud Prevention and Detection fee
$500
New consular-petition fee (since Sept. 21, 2025)
$100,000
Source: USCIS, Form G-1055 Fee Schedule; USCIS 2024 fee rule; Federal Register 90 FR 46027 (Sept. 24, 2025)
View data as table
H-1B fee components
I-129 base filing fee$780USCIS fee schedule
Asylum Program Fee$600employers with >25 staff
ACWIA training fee$1,500employers with 26+ staff
Fraud Prevention and Detection fee$500initial/new-employer petitions
New consular-petition fee$100,000since Sept. 21, 2025; 90 FR 46027

"Dependent" employers — those with 50 or more U.S. staff, more than half of them already in H-1B or L-1 status, a category that captures most IT-outsourcing and staffing firms — owe a further $4,000 under a 2015 law, on top of everything shown here. The $100,000 charge does not replace any of these fees; it stacks on top of them.

A fee that reaches a fraction of the program

The proclamation's $100,000 charge is narrower than the sponsorship system it sits inside. It applies only to new petitions for workers who are currently abroad and need a visa stamped at a U.S. consulate — not to renewals, not to extensions, and not to the majority of workers changing from a student visa to H-1B status while already inside the country.

The FY2024 H-1B pipeline — how much of it the new fee reaches
Approved petitions by category, fiscal year 2024
Total H-1B approvals, FY2024
399,403
Continuing employment (renewals) — exempt
258,196
Initial employment approvals
141,205
Consular/abroad — population the new fee targets
64,955
Source: Pew Research Center, citing USCIS/DHS data; USCIS, Characteristics of H-1B Specialty Occupation Workers, FY2024
View data as table
FY2024 H-1B approvals
Total H-1B approvals, FY2024399,403Pew Research Center, citing USCIS/DHS data
Continuing employment (renewals)258,196exempt from the new fee
Initial employment approvals141,205USCIS Characteristics report, FY2024
— of which, consular/port-of-entry≈64,955≈46% of initial approvals; new-fee population

Of the roughly 399,403 H-1B petitions USCIS approved in fiscal 2024, 258,196 — 65% — were continuing employment: people already working on an H-1B, renewing or extending it, permanently outside the new fee's reach. Of the 141,205 approved for initial employment, USCIS's own FY2024 characteristics report says 54% requested a change of status for a beneficiary already in the U.S. — also exempt. That leaves about 46%, roughly 65,000 workers a year, as the population a $100,000-per-petition charge is actually built to touch. The statutory annual cap sits at 85,000 new hires — 65,000 under the regular cap plus 20,000 reserved for U.S. master's degree holders — and for the fiscal 2026 lottery, 336,153 unique workers registered to compete for those slots, a 35.3% selection rate.

Vacated, then reinstated

The fee's legal footing is unresolved. Twenty states sued in the U.S. District Court for the District of Massachusetts (State of California, et al. v. Noem, et al., No. 1:25-cv-13829), arguing the proclamation amounted to an unauthorized tax that only Congress can impose. On June 8, 2026, Judge Leo T. Sorokin agreed and vacated the fee, finding it exceeded the administration's authority under the Immigration and Nationality Act. The government immediately moved to keep collecting it while it appealed; on June 12, 2026, the court granted a temporary administrative stay of its own ruling, conditioned on the government filing for a stay at the U.S. Court of Appeals for the First Circuit by June 18, 2026 — which it did, opening case No. 26-1699. As of this writing, is still requiring the $100,000 payment on covered petitions while the First Circuit decides whether that continues.

The takeaway

  • The charge is real and it is roughly 30 times the fee stack it sits on top of — $103,380 to sponsor one worker from abroad, versus $3,380 before Sept. 21, 2025, per 's own fee schedule.
  • It targets a narrow slice of the program — about 65,000 of the 399,403 H-1B petitions approved in FY2024, since renewals, extensions, and most in-country status changes are exempt.
  • A federal court has already called it an illegal tax — and it is still being enforced, an outcome that depends entirely on how the First Circuit rules on the government's stay request.

Every figure here reflects the standard-employer fee stack and FY2024 program totals as published by and the Federal Register; individual employer costs vary by company size and dependent-employer status, and the $100,000 fee's legal status could change before or after publication.

Sources

  • Federal Register, Restriction on Entry of Certain Nonimmigrant Workers, Presidential Proclamation, 90 FR 46027, published Sept. 24, 2025, effective 12:01 a.m. EDT Sept. 21, 2025 — establishes the $100,000 fee, its scope (new petitions for beneficiaries abroad), and its national-interest exception. federalregister.gov
  • , H-1B FAQ — agency guidance on who owes the $100,000 payment, exemptions, and payment mechanics. uscis.gov
  • , Form G-1055 Fee Schedule — official filing-fee amounts for Form I-129 H-1B petitions (base fee, Asylum Program Fee, ACWIA fee, Fraud Prevention and Detection fee). uscis.gov
  • , H and L Filing Fees for Form I-129 — breakdown of which employers owe the Public Law 114-113 $4,000 "H-1B dependent employer" fee. uscis.gov
  • , Characteristics of H-1B Specialty Occupation Workers, Fiscal Year 2024 Annual Report to Congress — source for the 141,205 initial-employment approvals and the 46%/54% consular-vs-change-of-status split. uscis.gov
  • Pew Research Center, US H-1B visa program data and key facts, March 4, 2025, citing / data — source for the FY2024 total (399,403) and continuing-employment (258,196) figures. pewresearch.org
  • , Reaches Fiscal Year 2026 H-1B Cap — the 85,000 statutory cap (65,000 regular + 20,000 master's exemption), 336,153 registered beneficiaries, and 35.3% selection rate for FY2026. uscis.gov
  • CourtListener, docket for State of California, et al. v. Noem, et al., No. 1:25-cv-13829 (D. Mass.) — the underlying litigation, June 8, 2026 order vacating the fee, and the June 12, 2026 administrative stay pending First Circuit review (No. 26-1699). courtlistener.com
Weekly digest: the most-read systems, in brief. Mondays.

Comments

Always open. Logged-in readers can annotate paragraphs in place.

Loading comments…
or log in to comment under your account