November Relaunch: Opening on 1st November
Xender Facebook logo Linkedin logo Instagram logo Youtube logo
  (+1) 413 400 3003
WhatsApp
WhatsApp Message
Perplexity ChatGPT Claude Gemini

Second Federal Judge Strikes Down the $100,000 H-1B Fee: What the September 30 Ruling Means

Perplexity ChatGPT Claude Gemini
Second Federal Judge Strikes Down the $100,000 H-1B Fee: What the September 30 Ruling Means

A second federal judge has struck down the $100,000 fee on new H-1B workers, and with it the September 2026 proclamation that renewed it. U.S. District Judge Haywood S. Gilliam Jr. found the policies arbitrary and capricious and ruled they were legislative rules that required public comment first. In plain terms, the government cannot create a charge of this size through agency memos and guidance without asking the public. Once again, our EB-1A consultants have overviewed this important piece of news in great detail.

What the judge ordered

In Global Nurse Force v. Trump, Gilliam vacated the agency policies that put the fee into practice and barred their enforcement under Proclamation 10973 and its extension, Proclamation 11069, until notice-and-comment rulemaking and regulatory flexibility analyses are completed. He granted a preliminary injunction motion in part. The Rio Times' LatAm Brief notes that the ruling targets the paperwork behind the fee, not the president's proclamation itself. The case was the first filed against the fee. A coalition of labor unions, healthcare employers, faculty groups and religious organizations lodged it on October 3, 2025.

Why the judge ruled this way

The judge wrote that the agencies failed to consider any alternatives or the reliance interests of the affected parties, which made the policies arbitrary and capricious. Because the policies set binding obligations, they counted as legislative rules. That meant the public should have been allowed to comment, and it was not.

The government argued that employers had no standing to sue if they never asked for a “national interest” exception to the fee. The judge was unmoved. He noted that BAE, a Michigan manufacturer, requested an exception on November 14, 2025 and never got a response, and that a medical practice had waited almost a year for an answer. If indefinite delay could defeat a lawsuit, he reasoned, agencies could shield any policy from challenge simply by never acting. The September 2026 proclamation did not mention a single employer in the past year receiving such an exception.

The employers behind the case

The court record reads like a map of the American economy outside the tech sector. Nephrology Associates, a rural kidney practice, said nearly all its physicians have been on H-1B visas. After a nine-month search it received only ten applications, and one qualified candidate, a J-1 physician who returned to India. The practice could not afford the fee, had to delay care and now has a waitlist of about 100 patients.

Lower Brule Day School, a K–12 school on a Sioux reservation in South Dakota, got ten applications for two positions, all from foreign nationals needing H-1B sponsorship. Global Village Academy Collective, which runs three tuition-free language-immersion charter schools in Colorado, said state funding cannot cover even one fee.

A fee that worked as a ban

The September 18, 2026 proclamation itself revealed that the fee had effectively stopped new H-1B hiring, with employers paying it for only about 700 people. It extended the fee for another 12 months.

Second court, different theory?

The California ruling follows a June decision on a different legal ground. On June 8, 2026, a Massachusetts federal court vacated the fee policy, finding that the payment is a tax rather than an immigration restriction and that the president lacks authority to impose it. That ruling applied nationwide, in a case led by 20 states under California Attorney General Rob Bonta.

The First Circuit declined to stay it on July 24, and DHS said it is complying while stating that it “strongly disagrees.” Not every court has agreed: a Washington, D.C., federal court upheld the fee requirement in December 2025.

Legal commentator Ilya Somin of George Mason University notes that the new decision “does not have any immediate impact” because the earlier ruling already blocks the fee, but that a second court ruling on a different ground suggests appellate judges may come out the same way.

What it means for employers today

The $100,000 fee is inactive, and employers can keep recruiting without paying it. Ordinary H-1B costs, typically $2,000 to $5,000, still apply. Jesse M. Bless of IMMpact Litigation said that “no agency policy lawfully requires the payment.” Plaintiffs' attorney Charles Kuck of Kuck Baxter said the judge saw “blatant violations of the Administrative Procedure Act.”

What comes next

The legal fight is not over. Litigation is likely to continue, though the ruling makes it less likely the administration can reinstate the fee. The decision does not directly address a DHS proposed rule from August that would charge $103,265 on new cap-subject H-1B professionals, but several arguments in the case resemble criticisms filed against that rule.

For now, the practical message to employers is that the fee cannot be enforced, but the underlying policy dispute is unresolved. Anyone with a pending H-1B filing should check current USCIS guidance with an immigration attorney.

At GCEB1, our EB-1A experts are continuing to cover the latest updates and insights into the U.S. immigration landscapes. Get in touch with us to get personalized mentorship for merit based green cards. We wish you a safe and stress free immigration journey ahead.

Frequently asked questions

1. What did the judge decide on September 30, 2026?

Judge Haywood S. Gilliam Jr. vacated the agency policies enforcing the $100,000 H-1B fee and barred their enforcement until the agencies complete proper rulemaking.

2. Does this ruling end the $100,000 fee for good?

No. Litigation is likely to continue, but the ruling makes reinstatement less likely.

3. Do employers have to pay the fee right now?

No. Two court rulings currently block enforcement, so employers sponsoring H-1B workers need not include the $100,000 payment while the orders stand.

4. Why did the judge call the policies “arbitrary and capricious”?

Because the agencies failed to consider alternatives or the reliance interests of employers affected by the fee.

5. What is notice-and-comment rulemaking?

It is the process under the Administrative Procedure Act that lets the public submit comments before a binding rule takes effect.

6. How is this different from the June ruling in Massachusetts?

The June decision found that the fee is an unlawful tax beyond presidential power. The California decision rests mainly on the agencies' failure to follow the Administrative Procedure Act.

7. Did the government appeal?

The government appealed the June ruling, and the First Circuit declined to pause it on July 24.

8. What is the $103,265 H-1B fee proposal?

It is a DHS proposed rule from August that would impose a fee on new H-1B professionals subject to the annual limit. The California ruling does not directly address it.

9. Which employers were hurt by the fee?

Plaintiffs include a nurse staffing agency, a rural kidney practice, a South Dakota reservation school and language-immersion charter schools in Colorado.

Sources & further readings

 

Recent Post
US Poses Double Threat to Foreign Students? Major Change in OPT Programs
US Poses Double Threat to Foreign Students? Major Change in OPT Programs

In a recent update, the Department of Homeland Security has shared its new proposal to change two regulations for the F, J, and I visa categories.
Did US Consulates in India Have Run Out of H-1B Interview Dates Till 2027?
Did US Consulates in India Have Run Out of H-1B Interview Dates Till 2027?

According to the reports of several news outlets, the US consulates across India have rescheduled several stamping interview dates further down into 2027. Undoubtedly, this update has caused major stir and disruptions among the Indian professionals. Visa offices in Delhi, Mumbai, Chennai, Hyderabad, and Kolkata no longer have regular interview slots available. Here, our Eb-1a experts have directly focused on this news in elaborate detail.
Universities Take Washington to Court Over New Limits on Student Internships
Universities Take Washington to Court Over New Limits on Student Internships

Previously, an international student at an American university could take an academic-credit internship with little more than a signature from a school official. That routine is now in doubt. On Monday, October 5, four of the country’s most influential higher-education bodies sued the federal government over a sudden narrowing of Curricular Practical Training, known as CPT, the program that lets F-1 students work in jobs tied to their degrees while still enrolled. Here, our EB-1A consultants have explored the disputes surrounding CPT in great detail.
US to Revoke B-1, B-2 Visas of 200,000 Asylum Seekers in Historic Immigration Crackdown
US to Revoke B-1, B-2 Visas of 200,000 Asylum Seekers in Historic Immigration Crackdown

The Trump administration is preparing to cancel the business and tourism visas of as many as 200,000 foreigners who have applied for, or are currently seeking, asylum in the United States. Several news outlets and officials say it would become the largest single mass revocation of visas in American history.
No Green Card for Immigrants With Heart Disease? Know The Truth
No Green Card for Immigrants With Heart Disease? Know The Truth

In a recent update, the Trump administration has reportedly counselled the American consular offices across the globe to intensify screening on potential green card applicants with certain health conditions.
U.S. To Introduce Visa Bond Pilot Program: Travelers Need to Pay $5K–$15K Deposit
U.S. To Introduce Visa Bond Pilot Program: Travelers Need to Pay $5K–$15K Deposit

In a move poised to reshape travel norms, the U.S. Department of State has launched a 12-month pilot visa bond program on August 20, 2025, targeting select B-1 (business) and B-2 (tourist) visa applicants.
Trump’s New Executive Order Puts H-1B Related Workforce Cuts Under Federal Review
Trump’s New Executive Order Puts H-1B Related Workforce Cuts Under Federal Review

For years, H-1B sponsors were judged mostly on wages, job descriptions and paperwork. A new executive order adds a sharper question: did you lay off American workers first? On September 18, 2026, President Trump issued Executive Order 14431, directing the Departments of Labor, Homeland Security and State to weigh layoffs in H-1B processing. The order was published in the Federal Register on September 23.

Could Your Green Card Priority Date
Could Your Green Card Priority Date

October marks the start of a new federal fiscal year, and with it, a fresh allocation of roughly 140,000 employment-based immigrant visas. For applicants whose priority dates sit tantalizingly close to the cutoff, the hope also rises whether they will finally be able to file the Form I-485, i.e. the application to adjust status to permanent residence. As of mid-September, however, immigration attorneys are urging a dose of caution alongside the optimism. "It is therefore too early to say that EB-2, EB-3, or EB-2 NIW moved forward, retrogressed, or became current," one legal analysis noted, pointing out that the October bulletin had not yet been published as of September 11, 2026. Still, the employment-based backlogs "are expected to remain under significant pressure until FY2027 begins on October 1," according to Visa Bulletin trend analysis. Moreover, in several analyses, the categories like EB-1 and EB-3 are seen as more likely to see modest forward movement in the coming months.
New Green Card Bill Targets Employment Visas, Family Immigration And Lottery: What Indian Applicants Should Know
New Green Card Bill Targets Employment Visas, Family Immigration And Lottery: What Indian Applicants Should Know

A newly introduced Senate bill could rewrite the rules of America’s legal immigration system from the ground up. It could reshape how employment-based green cards are awarded, and as well as narrow family sponsorship. The bill also permanently proposes to scrap the Diversity Visa lottery altogether. The bill is titled as Americans First Immigration Act and was introduced by Republican senator Tommy Tuberville of Alabama. As always, our EB-1A consultants have plunged into the depth of this bill and outlined what consequences this bill could pose in the U.S immigration landscape.
US Senator Mike Lee Airs Idea of Pausing H-1B Visa: What Should You Expect?
US Senator Mike Lee Airs Idea of Pausing H-1B Visa: What Should You Expect?

In a recent social media post, US Republican Senator Mike Lee has vented his desire to put a stop to the H-1B visa system. This is the visa system on which a large chunk of highly skilled Indian workers depend.