Second Federal Court Blocks Trump's $100,000 H-1B Fee: California Judge Issues Preliminary Injunction

SAN FRANCISCO, October 2, 2026 — A federal judge in the Northern District of California has issued a temporary block on the Department of Homeland Security's enforcement of President Trump's $100,000 H-1B fee, representing the second major legal defeat for the administration's primary immigration policy.

Judge Haywood Gilliam, Jr. granted the preliminary injunction on 30 September 2026, determining that the plaintiffs were likely to prevail on claims that DHS's implementation guidance was arbitrary and capricious and that the agency did not follow proper notice-and-comment rulemaking procedures under the Administrative Procedure Act.

The case is Global Nurse Force, et al. v. Trump, Case No. 25-cv-08454 (N.D. Cal., filed on October 3, 2025).

The Fee That Cannot Be Collected

The ruling means the $100,000 fee — which Trump extended for another 12 months in September — remains legally unenforceable across the United States.

As VisasUpdate reported in September, the fee was originally imposed by presidential proclamation on 19 September 2025. It was first vacated in June 2026 by a Massachusetts federal court, which held that the fee amounted to an unlawful tax requiring congressional authorisation.

The First Circuit Court of Appeals declined to stay that ruling on 24 July 2026. DHS subsequently confirmed it was complying with the court order and not collecting the fee — though the agency stated it "strongly disagrees" with the ruling.

A Pattern of Legal Defeats

This is now the second court to block the fee, creating a legal firewall that the administration has been unable to breach.

The Massachusetts case was appealed, but the First Circuit refused to pause the lower court's ruling — a signal that the judiciary is sceptical of the administration's legal position.

What This Means for Employers

Employers sponsoring H-1B workers from abroad do not need to include the $100,000 payment while these court orders stand.

However, as VisasUpdate's earlier analysis noted, this is not the end of the story. The administration has signalled it may argue that the September 2026 proclamation falls outside the scope of the existing injunctions. Plaintiffs in the ongoing lawsuits are expected to challenge that position immediately.

The practical guidance remains: do not pay the fee, but monitor the docket closely.

Who Is Exempt

The White House has confirmed that "exemptions remain in place for current H-1B visa holders and foreign graduates already in the U.S."

The Bigger Immigration Picture

The $100,000 fee is only one front in a broader regulatory battle. DHS has also proposed a $103,265 fee on all cap-subject H-1B petitions — a measure currently under OMB review — and new fees on OPT employment authorisation.

As VisasUpdate reported, the OPT proposal could impose a levy as high as $100,000 on post-graduation work authorisation, a programme used by approximately 419,000 foreign nationals.

For Indian professionals, who account for 77.6% of H-1B extensions and a significant share of OPT participants, these proposals represent an existential threat to U.S. work pathways.

What to Watch Next

Quick Reference Summary

Official Resources

For the latest immigration updates, visa policy changes, and 2026 developments worldwide, visit: visasupdate.com/blog//category/usa

VisasUpdate.com – The world's most trusted visa intelligence hub.Unlock 2026 immigration breakthroughs, digital nomad policies, and real-time fee alerts—all in one place.

Bookmark us now: visasupdate.com/news – Stay ahead. Move smarter.