The $100,000 H-1B Fee Is Blocked but Extended to 2027. What Should US Employers Do?

You do not have to pay the $100,000 H-1B fee right now. Two US federal courts have blocked it, and the government is not collecting it.

But a new proclamation extends the policy to 21 September 2027. Appeals are pending. And a separate proposed rule would charge $103,265 for new cap-subject workers.

So a hiring plan that depends on H-1B alone is risky. If you hire Indian engineers, analysts or finance staff, the faster route is to employ them in India through an employer of record in India. Choosing the best EOR in India for those roles decides how quickly you can make offers.

Remunance is not an immigration adviser. Speak to US immigration counsel before you file any petition. This piece explains where things stand on 2 November 2026, and what your India options are.

What Is the Current Status of the $100,000 H-1B Fee?

Blocked, for now. The fee applies to petitions for people outside the US who need an H-1B visa to enter. It is currently not required, according to the University of Colorado’s status update.

Treat the table as a snapshot. One court order can change it.

What Did the Courts Decide?

Two courts struck the policy down. On 8 June 2026, the US District Court for the District of Massachusetts vacated it, in a case brought by 20 states led by California. On 24 July 2026, the First Circuit refused to pause that ruling during the appeal, as Fragomen explains.

Then came a second ruling. On 30 September 2026, the US District Court for the Northern District of California invalidated the policies and barred enforcement, extension included. That was the Global Nurse Force case, as this summary of the second ruling sets out.

What Did the September Proclamation Change?

It extended the policy for 12 months, to 21 September 2027. It also noted that employers paid the fee on about 700 petitions in the first year.

Yale’s international office confirms the fee is not being collected while the court orders stand. It also notes that a separate federal court has allowed the fee in another case.

Do You Still Need to Pay the Fee for a New H-1B Petition?

No, not while the court orders stand. The open questions are what happens on appeal, and whether the policy could return. Check with counsel before you file, especially for petitions processed through consular notification.

What If You Already Paid the Fee?

Ask your counsel about a refund claim now. Whether employers who already paid will get the money back is still an open question. Keep your payment records and petition receipts together.

Why Is H-1B Still a Risky Way to Hire Indian Talent?

Because the fee is only one of several moving parts. Here are the other four.

Is the H-1B Lottery Getting Easier?

A little, but it is still a lottery. Registrations for fiscal year 2027 fell 38% to 211,600, according to Business Standard’s report. The annual cap is unchanged at 85,000 new visas, including 20,000 for US master’s graduates.

Selection is random. You cannot plan a start date around it.

What Is the Second Proposed Fee?

A separate DHS rule, proposed in August 2026. It would add a $103,265 fee for new cap-subject H-1B workers. The court rulings against the $100,000 fee do not cover it.

Is Visa Screening Getting Tighter?

Yes. Since 15 December 2025, the State Department has applied its online-presence review to all H-1B applicants and their H-4 dependants, as Duane Morris reported. More checks mean more time, and more chances of delay.

How Long Does an H-1B Hire Take?

Months, even when everything goes right. Registration runs in March. Selected petitions can be filed from April. A cap-subject employee can start on 1 October at the earliest.

It is also pushing talent home. 15,100 Indian tech professionals returned from the US in 2025, as we cover in our piece on India’s brain circulation push.

What Are the Alternatives to H-1B for Hiring Indian Talent?

For most roles, the fastest option is to hire the person in India. Here is how the main routes compare:

We go deeper in our guide to H-1B alternatives for US companies, and our guide for US companies in India.

Is Hiring Through an EOR Legal for a US Company?

Yes. The EOR is the legal employer in India and follows Indian law, so your company does not need an Indian entity. Our explainer on whether an employer of record is legal covers the model.

When Should You Still Sponsor an H-1B?

When the work has to happen in the US. Client-site roles, hands-on lab work and jobs that need a US licence fit here. For the rest, hiring in India is faster, cheaper and free of lottery risk.

What Does It Cost to Employ Someone in India Instead?

A fraction of the fee alone. With an EOR, you pay the salary, the employer’s statutory costs and the EOR fee.

The Remunance fee runs from USD 99 to USD 199 per employee a month, set by salary band. Even at the top band, a full year costs USD 2,388. That is under 3% of one $100,000 payment.

What Would a ₹30 Lakh Engineer Cost?

About ₹31.1 lakh a year before the EOR fee. Let’s say you hire a senior engineer in Pune on ₹30 lakh, with basic pay at half of CTC.

Statutory costs add just ₹1,11,306. PF is capped at ₹3,250 a month on the ₹25,000 wage ceiling. Put any salary into the EOR cost calculator for India to see the full monthly cost.

What Should You Do This Quarter?

Four moves, in this order.

• Pause any plan that depends on paying the $100,000 fee: and get counsel’s view on petitions already in progress.
• Sort your roles: list the ones that truly need to be in the US, and the ones that do not.
• Price the India hires: use the cost calculator, and line up an EOR so you can make offers this month.
• Keep the people who want to go home: if an H-1B employee wants to move back to India, keep them by moving their employment to India through an EOR.

“Don’t plan next year’s hiring around a fee that two courts have blocked and a proclamation has extended. Keep H-1B for the work that truly has to be done in the US, and hire everyone else in India, where the cost is known and the offer can go out this week,” says Ranjana Vaidya FCA, Chief Executive Officer of Remunance.

How Does Remunance Help US Companies Hire in India Without Visas?

Remunance is the best EOR in India for US companies that want Indian talent without visa risk. Our founding team has run payroll and hiring in India for 22+ years, first as Remunance Systems, which was later acquired by ADP. We have hired 1,200+ employees for clients across 34 Indian cities, and Corporate Connect named us India’s Best EOR Service Provider 2024.

• Employer of record from USD 99 per employee a month: payroll, PF, ESI, TDS and contracts handled.
• Offers out the same working day.
• Hiring at 9% of CTC: we find the right people in India.
• Subsidiary formation: when your India team is ready for its own Indian subsidiary.

See our EOR pricing for India, or talk to our team about the roles you need to fill.

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