The H-1B Rollercoaster of 2026: What's Actually True Right Now

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If you've tried to figure out the current status of the $100,000 H-1B fee by reading the news, you've probably come away more confused than when you started. That's not you — it's the story. In eleven months, this single policy has been announced, litigated, vacated by a federal judge, reinstated on appeal, and vacated again — and it's scheduled to expire in three weeks regardless of how any of that resolves. At the same time, and with far less attention, the entire H-1B selection system was rebuilt from the ground up. Here's the whole story, in the order it actually happened, and what it means for you right now.

The $100,000 H-1B fee has been struck down, appealed, reinstated, and struck down again since September 2025 — and it expires in weeks. Meanwhile, the entire lottery system was quietly rebuilt around wages. Here's the clearest explanation of both, in plain English.

Quick Answer: The Status as of Today

The $100,000 fee is currently NOT in effect. As of July 24, 2026, the First Circuit Court of Appeals denied the government's request to reinstate it, so the fee "cannot currently be enforced while the case continues through the courts."
This is not final. The underlying appeal is still active, other lawsuits are pending in other courts (including one that went the opposite way, currently on appeal at the D.C. Circuit), and the government could still seek emergency relief from the Supreme Court.
The original proclamation expires on its own terms on September 20, 2026 — regardless of how the litigation turns out, unless the administration extends or reissues it before that date.
Separately, and permanently (for now): the H-1B lottery is no longer random. As of the FY2027 cap season (which already closed — USCIS confirmed the cap was reached by mid-July 2026), selection is weighted by wage level, dramatically favoring higher-paid positions over entry-level roles.
The fee only ever applied to a specific group: new H-1B petitions requiring consular processing abroad — not to people already in the US changing status, and this distinction has shaped how employers have responded all year.

Part 1: How We Got Here — The Full Timeline

Understanding today's status requires understanding the sequence — because "the fee is blocked right now" and "the fee is gone forever" are two very different statements, and the timeline is the only way to tell which one is currently true.

Date	What happened
September 19, 2025	President Trump issues Presidential Proclamation 10973, imposing a $100,000 fee on new H-1B petitions for beneficiaries outside the US who require consular processing.
October 20, 2025	USCIS issues clarifying guidance: the fee applies specifically to petitions filed on or after September 21, 2025, approved for consular processing — not to in-country change-of-status filings.
December 12, 2025	A coalition of 20 state attorneys general, led by California and Massachusetts, sues the federal government, arguing the fee is an unconstitutional tax that only Congress can impose.
December 29, 2025	Separately, DHS finalizes a rule replacing the random H-1B lottery with a wage-weighted selection system — one of the most significant structural changes to the H-1B cap process in decades.
February 27, 2026	The wage-weighted lottery rule takes effect, in time for the FY2027 registration cycle.
March 2026	The FY2027 H-1B registration period opens under the new weighted system for the first time.
June 8, 2026	US District Judge Leo Sorokin (District of Massachusetts) rules the $100,000 fee unlawful, finding it functions as a tax the executive branch has no authority to impose without Congress.
June 12, 2026	An administrative stay briefly reinstates the fee while the government's appeal is considered.
June 18, 2026	The federal government formally files its motion to stay Judge Sorokin's order with the First Circuit Court of Appeals.
July 17, 2026	USCIS confirms the FY2027 H-1B cap has been reached, closing new cap-subject registrations for the year.
July 24, 2026	The First Circuit denies the government's motion to stay — the district court's vacatur takes effect, and the $100,000 fee becomes unenforceable again.
September 20, 2026 (upcoming)	Proclamation 10973 expires by its own terms after its stated 12-month duration — unless renewed or reissued before then.

The blunt summary: the fee has been in force, blocked, back in force, and blocked again — all within about seven weeks — and the litigation is still not resolved. Anyone telling you with total confidence "the fee is definitely gone" or "the fee definitely still applies" is oversimplifying an active legal situation.

Part 2: What's Actually True Right Now (August 2026)

USCIS is not currently permitted to collect the $100,000 fee on qualifying H-1B petitions, following the First Circuit's July 24 decision.
This applies specifically to petitions for initial H-1B status requiring consular processing — meaning the worker is outside the US and must obtain a visa stamp at a consulate before entering. It was never intended to apply to people already inside the US switching status.
Employers who paid the fee earlier this year during periods it was in force may have grounds to seek a refund, though the mechanics of this remain an evolving area as the litigation continues.
A second, unrelated lawsuit reached the opposite conclusion — a different court found the fee within presidential authority over noncitizen entry — and that case is now on appeal at the D.C. Circuit. This is precisely why the story isn't over: conflicting rulings across circuits often end up at the Supreme Court.
If you have an H-1B petition affected by this and international travel is involved, timing matters enormously. Attorneys have specifically flagged that if the government wins emergency relief from the Supreme Court while an employee happens to be abroad, that employee's reentry is what would trigger fee exposure — a reason many firms are advising affected employees to coordinate closely with counsel before any international travel during this period.

Part 3: The Change Getting Less Attention But Affecting More People — The Wage-Weighted Lottery

While the $100,000 fee saga dominated headlines, a quieter but arguably more consequential change was rebuilding the entire H-1B selection process underneath it.

What changed: for decades, USCIS selected H-1B registrations through a purely random lottery whenever demand exceeded the annual cap (65,000 regular + 20,000 for US master's degree holders). As of the FY2027 cycle — the first conducted entirely under the new system — that randomness is gone.

How the new system actually works: every registration is now weighted according to the Department of Labor's four-tier Occupational Employment and Wage Statistics (OEWS) wage levels for the role and location. Higher wage levels receive multiple entries into the selection pool, substantially increasing the odds of selection for higher-paid positions relative to entry-level ones.

Why this matters more than it sounds like it does:

Entry-level roles are structurally disadvantaged. Recent graduates and early-career applicants typically fall into Wage Level I or low Level II — precisely the tier that now receives the fewest lottery entries under the new weighting.
Employers are already adjusting compensation strategy. Immigration attorneys have publicly noted that heavy reliance on H-1B and PERM sponsorship now carries more uncertainty, and that some employers are responding by increasing offered wages specifically to improve selection odds — an incentive effect the rule's architects appear to have intended.
The rule survived its first cap season intact. Unlike the $100,000 fee, the wage-weighted lottery has not (as of this writing) been struck down or stayed by any court, and it governed the entire FY2027 registration cycle from opening to the July 2026 cap closure.
This is very likely the new normal, not a temporary policy. Unless successfully challenged in court, the wage-weighted system is expected to apply to the FY2028 cycle and beyond.

If your position pays close to the wage floor for your occupation and location, understand you're now competing in a structurally different, less favorable pool than an equivalent applicant earning Level III or IV wages — a distinction that simply didn't exist under the old random system.

Part 4: What to Actually Do Right Now

If you're an employer with a pending H-1B petition requiring consular processing:

Confirm with counsel whether your specific petition currently falls under an active fee requirement — the answer has changed multiple times this year and may change again before September 20.
If you paid the fee during a period when it was in force, ask your immigration counsel whether a refund claim is currently viable given the ongoing litigation.
Track the September 20, 2026 expiration date directly — if the administration doesn't renew or reissue the proclamation, this entire question may resolve itself regardless of the court cases.

If you're an H-1B holder or beneficiary with international travel plans:

Coordinate with your employer's immigration counsel before booking or confirming travel, specifically because reentry — not filing — is the moment that could trigger fee exposure if the legal landscape shifts again while you're abroad.
Keep copies of all documentation related to your petition's timing and status, given how frequently the fee's enforceability has changed.

If you're planning to register for the FY2028 H-1B lottery (registration expected around March 2027):

Understand that the wage-weighted system, not the traditional random lottery, will very likely govern your odds — factor your offered wage level into your expectations realistically rather than assuming the historical odds from prior years still apply.
If you're early-career or in an entry-level role, have an honest conversation with your employer about whether the offered salary reflects a wage level that gives you a meaningfully competitive chance, or whether alternative visa strategies are worth exploring in parallel.

Frequently Asked Questions

Is the $100,000 H-1B fee currently in effect? No — as of the First Circuit Court of Appeals' July 24, 2026 decision, USCIS cannot currently enforce the fee while the government's appeal proceeds. This is not a final resolution, however, and the legal status could change again.

When does the $100,000 H-1B fee proclamation expire? Presidential Proclamation 10973 was issued for a 12-month period and is set to expire on September 20, 2026, unless the administration extends or reissues it before that date.

Does the $100,000 fee apply to H-1B holders already living in the US? No — the fee was specifically directed at new H-1B petitions for beneficiaries outside the United States who require consular processing to obtain their visa. It was never applied to in-country change-of-status filings.

Is the H-1B lottery still random? No — as of the FY2027 cap season, USCIS replaced the random lottery with a wage-weighted selection system that gives registrations at higher Department of Labor wage levels significantly better odds of selection than entry-level positions.

Can I get a refund if I already paid the $100,000 fee? This remains an evolving area given the ongoing litigation. Affected employers should discuss the viability of a refund claim directly with immigration counsel, since the answer depends on the specific timing of when the fee was paid relative to the various court rulings.

Will the wage-weighted lottery system continue for future H-1B cap seasons? Unless successfully challenged in court, it's expected to continue governing future cycles, including the FY2028 registration period anticipated around March 2027. Unlike the $100,000 fee, this rule has not been struck down or stayed by any court as of this writing.

About This Article

This overview is based on Presidential Proclamation 10973, official USCIS and DHS guidance, and documented federal court rulings from the U.S. District Court for the District of Massachusetts, the U.S. Court of Appeals for the First Circuit, and related litigation, current as of August 29, 2026. This is an actively evolving legal situation — always confirm the current status directly with USCIS guidance or a licensed immigration attorney before making decisions based on any single point-in-time summary, including this one.

Immigrants.live will update this piece as the litigation and the September 20 deadline develop. This article does not constitute legal advice.