President Donald Trump extended his administration's $100,000 H-1B visa payment requirement for another year on Friday, September 18, keeping the controversial policy on the books through September 21, 2027, even as it remains blocked by an ongoing federal court challenge.

What the Policy Requires

The extended proclamation generally requires employers to make a $100,000 payment for covered H-1B petitions involving beneficiaries outside the United States — a dramatic increase from the previous baseline fees of $2,000 to $5,000. The Department of Homeland Security and State Department may deny entry to H-1B workers whose petitions aren't accompanied or supplemented by the required payment, unless a national interest exception applies.

Who Is and Isn't Affected

Importantly, the policy is not a blanket charge on every H-1B visa. It does not apply to: F-1 students changing status inside the US, extensions or renewals for current H-1B holders, or change-of-employer petitions for beneficiaries already inside the country. It primarily affects foreign nationals outside the US who need to enter the country in H-1B status to begin employment under a newly approved petition, including those applying for the visa at a US consulate abroad.

The Policy's Origin and Stated Purpose

The fee was originally signed on September 19, 2025, and took effect two days later, targeting new H-1B specialty occupation workers hired from outside the US. According to the administration, the extension is meant to prioritize higher-skilled, higher-paid foreign talent while addressing wage protection concerns, labor market impacts, and program integrity. Trump has said the restriction has "reduced the reliance on lower-paid foreign labour." A White House spokesperson framed the renewal as "a response to the significant decline in applications for the H-1B visa," stating: "This decision reflects an awareness of the current economic climate and the importance of talent acquisition in driving innovation." The renewal is also reportedly aimed specifically at employers that have laid off US workers.

A Policy Currently Blocked in Court

Despite the extension, the fee remains legally unenforceable. A federal judge in Massachusetts, US District Judge Leo T. Sorokin, ruled on June 8, 2026, that the government's implementation guidance for the fee was illegal and blocked its collection. The fee has been unenforceable since late July, and the case is now under review by the First Circuit Court of Appeals in Boston, with the Trump administration having appealed the district court's ruling. According to some reporting, the policy's legality is being contested in two separate federal appeals courts simultaneously.

Why India Faces Outsized Impact

The extension carries particular significance for India, the largest source country for H-1B workers, given how central the visa program is to US technology companies recruiting engineers and IT professionals from both India and China. Indian technology firms and outsourcing companies have already faced repeated market disruption this year tied to shifting US visa policy, with Indian IT stocks losing tens of thousands of crores in market value on previous occasions when new visa restrictions were announced.

The Ongoing Legal Uncertainty

The extension effectively locks the policy in place on paper for another full year, even while its practical enforceability remains entirely contingent on the outcome of the pending appellate review. This creates genuine ambiguity for employers and prospective H-1B workers alike: the fee requirement technically exists in law through September 2027, but companies currently aren't required to pay it given the ongoing court block — a situation that could change abruptly if the First Circuit reverses the lower court's ruling.

Industry Opposition

The policy has drawn opposition from major firms that rely heavily on skilled foreign workers, particularly in the technology sector, where H-1B visas have long been a critical pipeline for specialized engineering and technical talent that companies argue isn't readily available in sufficient supply from the domestic labor market alone.

What's Next

With the appeals court review still pending and the extension now formally in place through September 21, 2027, the coming months will be pivotal in determining whether the $100,000 fee ultimately survives legal challenge and becomes enforceable again, or remains blocked indefinitely pending further litigation. For continuing coverage, see the full Epoch Times report.