On July 24, 2026, the U.S. Court of Appeals for the First Circuit denied the federal government's motion to stay a Massachusetts district court order that vacated the $100,000 fee on certain new H-1B petitions imposed under Presidential Proclamation 10973. The First Circuit's order preserves the district court's ruling while the government's appeal on the merits moves forward, offering employers meaningful, if provisional, relief from a substantial cost obligation that had reshaped H-1B planning for many organizations.
As a direct result of the ruling, U.S. Citizenship and Immigration Services is barred from assessing or collecting the $100,000 fee while the appeal is pending. For employers with H-1B petitions currently on file, or those preparing new filings in the coming weeks and months, this development removes a significant near-term financial barrier and restores a degree of predictability to workforce planning. It also reduces the immediate pressure that had prompted some employers to narrow the scope of sponsored roles, reconsider candidate slates, or defer filings altogether pending clarity from the courts.
Even so, the reprieve is not a final resolution. The government's appeal remains active, and a reversal on the merits could reinstate the fee, potentially with retroactive implications for petitions filed during the pendency of the litigation. Employers should therefore treat the current landscape as an opportunity to move forward on well-founded filings, while remaining alert to the possibility of further developments.
In light of the ruling, employers are encouraged to reassess H-1B budgets to reflect the current absence of the $100,000 fee, revisit filing timelines that may have been delayed due to cost considerations, and evaluate strategic decisions about role sponsorship, transfers, and extensions. Documentation practices should also be reviewed so that petitions are well-supported in the event of policy shifts. Human resources, immigration, and finance teams should coordinate closely to align hiring plans with the evolving legal posture.
Our firm will continue to monitor the First Circuit appeal and any related administrative guidance from USCIS, and we will provide updates as significant developments occur.
This alert is provided for general informational purposes only and does not constitute legal advice. Clients and prospective clients should seek tailored guidance from qualified counsel regarding their specific circumstances.