Explained: Why a US court has put the brakes on the $100,000 H-1B payment

A US appeals court has refused to pause a lower court's decision striking down the Trump administration's controversial $100,000 payment requirement for certain H-1B visa petitions, offering temporary relief to employers and skilled foreign workers, including thousands of Indians.

 

The July 24 order by the US Court of Appeals for the First Circuit means the payment requirement cannot currently be enforced while the government's appeal continues. The court, however, has not ruled on whether the policy itself is ultimately lawful, leaving the legal battle far from over.  "The appeals court ruling means that a lower court decision invalidating the $100,000 fee and prohibiting U.S. Citizenship and Immigration Services (USCIS) from collecting it should now take effect. USCIS is expected to issue updated guidance and filing procedures in light of the ruling, though it may take several days for that guidance to be announced," said immigration law firm Fragomen. 

   

Here's what the latest ruling means for H-1B applicants.

 

What was the $100,000 H-1B payment?

 

In September 2025, then US President Donald Trump issued a proclamation directing the Department of Homeland Security (DHS) and the Department of State (DOS) to require a $100,000 payment for certain H-1B visa petitions.

 

The requirement did not apply to every H-1B application. It was limited to petitions filed on or after September 21, 2025, where the beneficiary was outside the US and required consular processing before entering the country. Workers already in the US seeking an extension or change of status were exempt.

 

What has the court decided now?

 

The First Circuit has refused the US government's request to put the district court's June 8 ruling on hold during the appeal.

 

As a result, the district court's order vacating the agencies' implementation of the $100,000 payment remains in effect. That means US Citizenship and Immigration Services (USCIS) should not collect the payment from affected H-1B petitions while the appeal is pending, according to the court documents.

 

The appeals court stressed that its decision does not determine whether the policy is ultimately legal. It only concluded that the government had not shown it was likely to succeed in obtaining a stay.

 

Why did the courts object to the payment?

 

The lower court found that the administration lacked clear statutory authority to impose such a payment through executive action.

 

In refusing to stay that ruling, the appeals court noted that Congress must clearly authorise financial burdens of this kind. It observed that the immigration provisions relied upon by the government do not explicitly authorise a $100,000 payment and that, where Congress has intended to create immigration fees, it has done so expressly through legislation.

 

What does this mean for Indian H-1B applicants?

 

For Indian professionals applying for H-1B visas from outside the US, the immediate takeaway is that the $100,000 payment is not currently being enforced for petitions covered by the litigation.

 

However, applicants should note three important caveats:

 

• The government's appeal is still pending, so the legal position could change.
• USCIS is expected to issue updated filing instructions but had not done so at the time the update was published.
• Other legal challenges involving the proclamation are continuing in different US courts.

 

Will people who already paid get their money back?

 

Not yet.

 

The court decisions so far do not address refunds for employers or applicants who may already have made the payment.

 

Whether refunds will be issued is likely to depend on future court rulings or guidance from USCIS.

 

Should applicants delay filing?

 

The update does not advise employers to delay H-1B filings.

 

Instead, employers with affected petitions should watch for updated USCIS filing instructions and retain records of any payments already made, as the litigation is ongoing.

 

What should H-1B applicants do now?

 

If you have an H-1B petition involving consular processing:

 

• Check with your immigration attorney or employer before filing.
• Monitor USCIS for revised filing instructions.
• Keep copies of all payment receipts and filing records if any payment has already been made.
• Follow the progress of the government's appeal, as the legal position may change.

"With the stay denied, the district court’s vacatur takes effect, and U.S. Citizenship and Immigration Services (USCIS) should not assess the $100,000 payment on affected H-1B petitions. USCIS is expected to issue updated filing guidance, though the agency had not announced a timeline as of publication.

 

The court decisions to date do not address refunds for payments already submitted.

 

The government’s appeal remains pending, and further relief may be sought. A separate district court decision upholding the proclamation is on appeal before the U.S. Court of Appeals for the D.C. Circuit, and additional challenges remain pending in other federal courts.

 

Employers with H-1B petitions involving consular notification should monitor USCIS for updated filing instructions and retain documentation of any payments already made," said immigration law firm Envoy Global in a note.  

"The appeals court decision means that a temporary pause of the lower court order invalidating the $100,000 should be lifted, prohibiting U.S. Citizenship and Immigration Services (USCIS) from assessing the fee on H-1B petitions. It is not yet clear how the ruling will affect petitioning employers who have already paid the fee," said Fragomen. 

What’s next for the $100,000 fee

USCIS is expected to issue new guidance and H-1B petition filing instructions consistent with the invalidation of the $100,000 fee, though it may take a few days for that guidance to be announced. Employers planning to file H-1B petitions that would have been subject to the fee – meaning those that are to be filed for or may only be approvable for consular notification – should consult with immigration counsel before proceeding.

 

The Trump Administration is expected to continue its appeal of the district court invalidation.