What has happened

The additional $100,000 payment on new H-1B petitions was imposed by a presidential proclamation in September 2025. According to law-firm and university immigration offices, a federal judge in Massachusetts vacated the fee on 8 June 2026, finding it exceeded executive authority. The First Circuit denied the government's request to keep it in place during the appeal on 24 July 2026, and a further ruling in the Northern District of California was reported on 30 September 2026. The appeal continues, so the fee could return if a higher court rules differently. Regular H-1B filing fees still apply.

These are secondary reports, and details differ between sources. Check current status with an immigration attorney before making decisions that depend on it.

We did not find reliable data on how companies changed hiring in response to the fee. Anyone presenting hard numbers on a shift to offshore hiring should show their source.

Plan by scenario, not by headline

Write down at least three scenarios: the fee stays vacated, it is reinstated, and a different restriction replaces it. For each, estimate what it would do to your ability to hire specific skills, in which locations, and on what timelines. Then identify which parts of your roadmap are exposed to a single scenario.

The robust answer is almost always a mix: hiring in the US where roles need presence, remote and distributed hires within allowed locations, contractors for spiky needs, and trusted delivery partners for well-bounded work.

Talent modelStrengthsWatch-outs
US employeesDeep context and continuityHiring speed and cost
Distributed remote hiresWider talent poolEmployment law and time zones
ContractorsFlexible for spikesKnowledge retention and IP
Delivery partnersFast ramp for bounded workGovernance and tax treatment, see below

Check the second-order effects

Where work is done can affect taxes and intellectual property. Under current US tax rules, research expenses attributable to research conducted outside the United States are treated differently from domestic research, which is worth understanding before shifting engineering abroad. See our article on that topic and discuss it with your tax advisor.

Whatever the mix, invest in clear specifications, strong code review, and shared tooling so work moves cleanly between people and places.

Rethinking how you staff engineering? See our dedicated team model or talk to us.

Key takeaways

  • A federal court vacated the $100,000 H-1B payment requirement in June 2026; the appeal continues and the fee could return.
  • Plan by scenario rather than by headline, and identify roadmap items exposed to a single outcome.
  • A mix of US hires, distributed hires, contractors, and delivery partners is more resilient than any single model.
  • Check tax and IP effects before moving work, and invest in clear specs and shared tooling.
This is general information, not legal, immigration, or tax advice. Court status is changing; consult qualified counsel. We provide engineering delivery and therefore have an interest in distributed teams, so weigh this accordingly.