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Increased H-1B Scrutiny: $100,000 Fee Extended and New Employer Layoff Considerations Announced

Posted on October 5, 2026 in Health Law News, HR Insights for Health Care

Published by: Hall Render

On September 18, 2026, President Trump issued two related measures affecting the H-1B program—a Proclamation extending the $100,000 H-1B fee to certain H-1B workers and an Executive Order directing federal agencies to strengthen H-1B oversight, including by considering employers’ recent or planned layoffs of similarly situated U.S. workers.

The $100,000 fee, which applies to certain H-1B beneficiaries outside of the United States without a valid H-1B visa, was set to expire on September 21, 2026. The new Proclamation extends the fee for an additional year, through September 21, 2027. For additional information regarding the scope and application of the $100,00 H-1B Fee, please see our previous client alert.

The extension comes amid ongoing litigation over the $100,000 fee. On June 8, 2026, the U.S. District Court for the District of Massachusetts vacated the Original Proclamation implementing the fee. Specifically, the court found the $100,000 fee violated the separation of powers and Administrative Procedures Act by imposing an unauthorized tax without congressional approval. Shortly thereafter, the government filed a notice of appeal with the U.S. Court of Appeals for the First Circuit and sought a stay of the district court’s order so that it could continue collecting the fee while the appeal proceeded. Ultimately, the First Circuit denied the government’s motion to stay the district court’s order. Although USCIS acknowledged and agreed to comply with the court order, President Trump has now extended the fee for another year, citing measurable changes in the H-1B filing patterns as evidence of the 2025 Proclamation’s effectiveness and the need for its extension.

The accompanying Executive Order directs the Secretary of State, the Secretary of Labor and the Secretary of Homeland Security to consider an H-1B sponsoring employer’s layoff activity when reviewing labor condition applications, petitions, visas and requests for entry. Specifically, the agencies must consider whether the employer directly or indirectly engaged in layoffs within the previous years or plans future layoffs that negatively affect the employment of similarly situated U.S. workers. The Executive Order also directs the Secretary of Labor, through the Administrator of the Wage and Hour Division, to begin reviewing data related to previously submitted labor condition applications.

Practical Takeaways

Sponsoring employers should be prepared for increased scrutiny of H-1B petitions and should consider the potential immigration implications of recent or planned layoffs. Hall Render’s Immigration Team is closely monitoring these developments and can help you assess potential impacts.

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Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot—outside of an attorney-client relationship—answer specific questions that would be legal advice.