Hiring Foreign Talent in 2026: What the 100,000 Dollar H-1B Fee Really Costs US Employers

You have found the right engineer, nurse, or researcher, and they happen to live outside the United States. A year ago, sponsoring them for an H-1B could have meant writing a 100,000 dollar cheque on top of the usual costs. Today the answer is different, but it is not simple.

The 100,000 dollar payment was created by a presidential proclamation in September 2025 and extended in September 2026 to run until September 2027. At the same time, two federal courts have blocked the government from collecting it, and as of October 2026 employers filing covered petitions are not paying it. The legal fight is not over, so the cost could return.

Here is who the payment covers, how we got here, and how employers can plan sensibly while the courts decide.

Short on time? Here is the quick answer.

Right Now, Employers Are Not Paying It

In June 2026, a federal court in Massachusetts vacated the agency policies that implemented the fee, finding the government lacked authority to impose it. That order was briefly paused while the government sought a stay, but on 24 July 2026 the First Circuit Court of Appeals refused the stay, and USCIS said it would stop collecting the payment. On 30 September 2026, a federal court in California separately blocked the agencies from enforcing the payment, including under the September 2026 extension, until they comply with formal rulemaking requirements.

USCIS has also said that, if the court orders were lifted, the Department of Homeland Security still plans to collect the payment. That is why employers should not treat the current position as permanent. On the same day as the extension, the President separately signed an executive order on H-1B programme integrity, including consideration of employer layoffs. That order is distinct from the fee and is not affected by these rulings.

How We Got Here

Courts have split on the question, which makes further appeals likely. Briefing on the merits in the First Circuit was due to conclude on 16 October 2026, and further hearings in the California case were scheduled for late October.

Who the Payment Covers

The payment was aimed at new H-1B petitions for workers who are outside the United States and need a visa from a US consulate, and at certain petitions for workers inside the country who cannot change status. It was not an annual charge on every existing H-1B worker.

The distinction between consular processing and change of status therefore drives most of the potential cost difference. A candidate already in the United States in valid student or other status can be a very different budget proposition from an identical candidate abroad.

Here is how the cost picture looks for two very similar candidates.

What You Still Pay Today

Even with the payment blocked, sponsoring an H-1B worker is not cheap. Employers still pay the registration fee for the lottery where it applies, the petition filing fee, the training fee, the fraud prevention and detection fee, the asylum programme fee, and any premium processing they choose, plus legal costs. The worker will also face visa fees at the consulate. Check the current USCIS fee schedule, because several of these amounts depend on employer size and have changed in recent years.

The Other Fee to Watch

Separately from the proclamation, the Department of Homeland Security has proposed a large new fee, of a little over 103,000 dollars, for certain cap subject H-1B petitions. The public comment period closed on 24 September 2026, and no final rule had been published as of early October 2026. If it is finalised as proposed, cap exempt employers such as universities would not be subject to it. Treat it as a proposal, not a cost you owe today.

How Employers Can Plan

1. Do not submit the 100,000 dollar payment unless current official guidance says it is required.
2. Budget in scenarios: one where the payment stays blocked, and one where a higher court revives it.
3. Where a candidate is lawfully in the United States, ask counsel whether a change of status is available, since it was outside the proclamation's scope.
4. Avoid unnecessary international travel for workers with pending petitions until counsel confirms the risk.
5. Track the First Circuit appeal, the California case, and the DHS proposed rule, and review plans after each development.

Before You Rely on Any Figure

Everything above reflects court orders and official announcements as of early October 2026. This area has changed several times in a few months, and a single appellate or Supreme Court order could change it again. Check the USCIS H-1B pages and current guidance on the day you file. Decisions on individual petitions should be made with a licensed immigration attorney. World Visa Academy is a training academy; it does not file petitions, represent employers, or guarantee any visa outcome.

The Honest Summary

On paper, the 100,000 dollar H-1B payment runs until September 2027. In practice, courts have stopped the government from collecting it, so employers hiring from abroad are not paying it today. The risk is that a higher court changes that. Plan for both outcomes, keep the usual H-1B costs in your budget, and watch the appeals closely before committing to large international hires.