On July 24, 2026, the U.S. Court of Appeals for the First Circuit denied the government's motion to stay a district court judgment that vacated the policy implementing the $100,000 H-1B fee. In refusing the stay, the appellate court found that the government had not demonstrated a likelihood of success on the merits of its appeal. The practical effect is that the fee cannot be collected from H-1B petitioners while the appeal moves forward, providing continued financial relief to employers that rely on the H-1B program to fill critical roles.
The ruling does not resolve the underlying dispute. The First Circuit's order addresses only the government's request for interim relief, and briefing on the merits will continue in the ordinary course. Employers should therefore treat the current pause on collection as a temporary reprieve rather than a definitive resolution. A reversal on appeal, a superseding executive action, or a new agency rulemaking could each alter the landscape with limited notice, and companies with pending or anticipated H-1B filings should build flexibility into their workforce planning accordingly.
The decision also does not affect Proclamation 10973's separate 12-month restriction, which remains in place under its own terms and is currently scheduled to expire on September 20, 2026 unless extended. Employers navigating overlapping restrictions should continue to monitor for any extension or replacement of that proclamation, as its expiration or continuation will materially influence hiring timelines and compliance obligations for the remainder of the year.
Employers that previously paid the $100,000 fee should take particular care to preserve their rights. Refund procedures have not yet been established, and it is not clear when or how repayment claims will be processed if the vacatur is ultimately upheld. Companies should retain complete payment records, receipts, correspondence with counsel and government agencies, and internal documentation reflecting the affected petitions. Maintaining an organized file now will streamline any future claim and reduce the risk that recovery is delayed or denied due to missing documentation.
This alert is provided for general informational purposes only and does not constitute legal advice. Clients should consult qualified counsel for guidance tailored to their specific circumstances.