US Court Blocks $100,000 H-1B Fee: India Wins

| Updated On - Aug 1, 2026

The US First Circuit Court of Appeals on July 24, 2026, refused to reinstate the $100,000 H-1B petition fee. The block hands immediate relief to Indian tech workers, who took 283,772 H-1B approvals in FY2025. The three-judge panel upheld a June 8, 2026 ruling by the US District Court for Massachusetts. That order vacated the fee first imposed by the Trump administration on September 19, 2025.

US employers can file new H-1B petitions without the $100,000 upfront charge for now.
Indian nationals held 71% of all H-1B approvals in FY2025.
Judge Leo Sorokin ruled the fee an unlawful tax that only Congress can impose.

The block does not kill the fee outright. The government’s appeal on the merits is still live in the First Circuit. Indian applicants aiming for the FY2027 H-1B lottery still face uncertainty over next spring’s rules.

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What the First Circuit Ruling Actually Says

The three-judge panel denied the government’s motion for a stay on July 24, 2026. It said the administration "failed to make a strong showing that it is likely to succeed on the merits." The court agreed that Congress never authorised a payment of this size. USCIS and the State Department cannot enforce the vacated policy during the appeal.

Judge Leo Sorokin of the Massachusetts District Court struck down the fee on June 8, 2026. He wrote that the "$100,000 payment reveals that it is a tax." Only Congress, not the White House, can impose such a tax. The ruling also found the fee violates the federal Administrative Procedure Act.

Why 71% of H-1B Holders Are Indian

Indian nationals received 283,772 H-1B approvals in FY2025. That was 69.9% of the 406,348 total approvals USCIS granted. China placed second with just 49,161 approvals. The Indian share climbs to 71% when counting active visa holders across all years.

The pipeline runs through US universities. Open Doors 2024-25 counts 3,63,019 Indian students enrolled in the United States. Of these, 1,43,740 are on Optional Practical Training (OPT). Most feed the H-1B lottery after their STEM extension ends.

What it means for Indian Students: The block restores the earlier employer economics that made Indian F-1 graduates the default hire. A $100,000 sticker made many mid-size US firms drop Indian candidates for domestic talent. That signal now flips back for the FY2027 registration window.

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Old H-1B Fees vs the Blocked $100,000 Rule

USDINR was ₹95.7 per US dollar on July 31, 2026, per exchange rate data. All conversions below use that live rate.

Cost item	USD	INR (at ₹95.7/USD)
Previous total per new H-1B petition	$2,000 to $5,000	₹1.91 lakh to ₹4.79 lakh
Proclamation 10973 add-on	$100,000	₹95.70 lakh
Total under the blocked rule	$102,000 to $105,000	₹97.6 lakh to ₹1.00 crore
Total after the July 24 ruling	$2,000 to $5,000	₹1.91 lakh to ₹4.79 lakh

A single H-1B hire cost a US employer over ₹96 lakh under the September 2025 rule. That is roughly what a mid-career Infosys architect earns in three years. The block returns the cost to about the price of one Indian intern.

Which Indian Applicants Get Immediate Relief

The block covers new H-1B petitions filed for workers outside the United States. Employers no longer need to attach the $100,000 payment. USCIS confirmed in October 2025 that change-of-status petitions were exempt from the start. F-1 students moving from OPT to H-1B were already outside the fee’s scope.

Extensions, amendments, and employer transfers were also exempt. The court ruling removes the barrier for Indian applicants picked in the March 2026 lottery who were still awaiting consular processing. Those cases now proceed on the older fee sheet.

How Should Indian F-1 Students Prepare for FY2027?

The FY2027 H-1B registration window opens in March 2027. Employers register selected candidates through their USCIS online accounts. Indian OPT students should confirm sponsorship well before the window.

Check three things with your employer this quarter. First, whether the firm has budgeted your registration under the older fee bracket. Second, whether the firm intends to file a cap-exempt petition through a university affiliate. Third, whether your OPT or STEM OPT covers the gap between the March 2027 draw and the October 2027 start date.

Convert-and-continue candidates should also track the OPT to H-1B conversion process for the new cycle. The change-of-status route stays open.

When Could the $100,000 Fee Come Back?

The First Circuit still has to rule on the appeal’s merits. If the panel sides with the government, the fee could be reinstated. USCIS already reinstated the fee once, in June 2026, after a short-lived earlier stay. A reversal before March 2027 would land right on the FY2027 lottery.

Important Distinction: The July 24 block is a denial of stay, not a final win. The fee remains legally vacated but only until the appeal is decided. Indian applicants should plan for either outcome landing before the March 2027 registration draw.

A permanent bar would need either a merits ruling for the plaintiff states or an act of Congress. The White House can also issue a fresh proclamation with a smaller fee designed to survive review. Any of these could arrive with only weeks of notice. Indian applicants planning a March 2027 H-1B registration now file under the old $2,000 to $5,000 bracket. The First Circuit’s merits ruling could reset that at any point. F-1 students on OPT still need employer sponsorship the day the cap window opens.

Action Plan for Indian H-1B Aspirants

Confirm employer H-1B sponsorship in writing before the March 2027 registration opens.
Track the First Circuit appeal docket for any new stay motion or merits ruling.
Keep a STEM OPT extension application ready as a backup work route.
Save every USCIS fee receipt from September 2025 onward for possible refund claims.
Ask HR whether the employer already pre-paid the $100,000 under the earlier guidance.

Keep an Eye On: The First Circuit’s merits decision on the government’s appeal is the next inflection point. A reversal could reinstate the $100,000 fee before the FY2027 H-1B registration opens in March 2027.

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