US Court Rejects $100,000 H-1B Visa Fee Proposal, Relief for Indian IT Companies

In a major relief for Indian IT companies and professionals, a US federal appeals court has rejected the US government’s request to revive a proposed $100,000 fee on certain new H-1B Visa for employees to work in the USA.

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The ruling means employers will not have to pay the proposed fee while the legal challenge continues.

The First US Circuit Court of Appeals upheld an earlier court decision that blocked the fee, saying the government had failed to show it was likely to succeed in its appeal.

The lower court had ruled that the fee was not authorised by Congress and could not be imposed through executive action alone.

Why It Matters for India

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The decision is significant for Indian technology companies such as TCS, Infosys, Wipro, HCLTech and Tech Mahindra, which are among the largest users of the H-1B visa programme.

Also Read: The Real HR Story Behind India’s IT Hiring: Q1 FY27 Results

These companies regularly send skilled professionals to the US to work on client projects.

If implemented, the proposal would have increased the cost of sponsoring some new H-1B visas from the current processing fees to $100,000 per application, making it much more expensive for companies to hire foreign talent.

Indian professionals receive the largest share of H-1B visas every year. Thousands of software engineers, technology specialists and other skilled workers from India depend on the programme to work in the US.

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Court Says Government Failed to Justify the Fee

The appeals court said the US government had not shown that it was likely to win the case or that it had the legal authority to impose such a high fee without approval from Congress.

As a result, the proposed fee for H-1B Visa will remain blocked while the case moves through the courts.

For Indian employers and professionals, the ruling removes immediate uncertainty over a policy that could have significantly increased hiring costs and affected overseas assignments.

However, the legal dispute is not over, and a final decision on the proposal will come after the courts complete the hearing of the case.

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