Alerts

H-1B Order Targets Layoffs as $100K Fee Extended to 2027

A new H-1B executive order links approvals to employer layoffs, and the $100,000 fee proclamation now runs to Sept 2027. What changes for employers.

xpath.global Editorial TeamMobility & Immigration Desk
September 23, 20267 min read
US Capitol building representing federal H-1B immigration policy changes
Share

On 18 September 2026 the White House issued two separate H-1B measures. A presidential proclamation extends the $100,000 payment policy for certain H-1B petitions until 21 September 2027. An executive order, "Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program", directs agencies to weigh an employer's recent and planned layoffs when deciding H-1B filings.

The two measures have different legal standing. Employers sponsoring H-1B workers, or planning to, need to treat them separately.

What Has Changed

The fee proclamation (extended, but still blocked)

  • The entry restriction first introduced in September 2025 now runs for another 12 months, from 21 September 2026 to 21 September 2027.
  • It keeps a $100,000 payment requirement for covered petitions, mainly those for beneficiaries outside the US who need consular processing, with discretionary national-interest exceptions.
  • On 8 June 2026 the US District Court for the District of Massachusetts vacated the original fee policy, finding it functioned as an unauthorised tax. The First Circuit declined in July to keep that ruling on hold, so collection remains barred while the government appeals.
  • Immigration counsel widely read the vacatur as covering the extension too, because it continues the same payment policy. No court has yet ruled on the extension itself, so this position could change.

The layoffs executive order (in effect now)

  • State, Labor and Homeland Security must coordinate on H-1B petitions, Labor Condition Applications (LCAs) and visa applications, consulting Commerce, Education and the Small Business Administration for wage and labour-market data.
  • Agencies are told to consider an employer's direct or indirect involvement in layoffs within the prior year, and planned layoffs, that affect similarly situated US workers.
  • The Department of Labor's Wage and Hour Division must begin reviewing previously filed LCA data within 30 days of the order.
  • The fee litigation does not suspend this order. It does not create an automatic denial rule after a layoff, change the annual cap or add a new filing form.

A separate DHS proposal, published on 25 August 2026, would add a fee of more than $103,000 to cap-subject H-1B petitions. It remains a proposal and is not a current payment obligation.

What This Means for HR and Mobility Teams

The immediate cost picture has not moved: under the court's current ruling, the $100,000 payment should not be collected. The compliance picture has moved. Any employer that has run a reduction in force in the past year, or has one planned, should expect H-1B filings to face closer questions about how the sponsored role relates to the positions that were cut.

That scrutiny lands hardest on three groups:

  • Employers with recent restructuring. Requests for evidence may ask whether a sponsored role replaces a terminated one. The answer depends on duties, qualifications, worksite and timing, and it has to be documented.
  • Teams with offshore hires needing consular activation. These were the principal exposure category under the fee policy. If the court position shifts, they are the first cases affected.
  • Organisations weighing US versus European assignments. A US role now carries a fee risk that is paused rather than resolved, plus layoff-linked review. For some moves, a European destination with a fixed, published route will be the more predictable option for 2027 planning.

Action Steps

  1. Map every pending and planned H-1B case by type: consular processing, change of status, or extension of stay.
  2. Pull records for any layoffs in the last 12 months and any planned reductions, and match them against sponsored roles by duties and location.
  3. Check that job descriptions, wage records and worksite details in filed LCAs are current, ahead of the Labor Department review.
  4. Budget conditionally for the $100,000 payment and the proposed $103,000+ fee, while keeping them separate from current liabilities.
  5. Recheck court developments and agency guidance immediately before each filing, visa appointment and essential business trip.

Where xpath.global Fits

xpath.global's work permit and visa advisory team tracks US immigration policy alongside the European routes our clients use as alternatives. Whether you are keeping headcount in the US or moving a planned hire to Germany, the Netherlands or Romania, our specialists manage the full permit process and keep each case visible on one platform, so your team plans against the rules as they stand. Speak to our team: https://xpath.global/contact

"Sources: The White House, presidential proclamation and executive order of 18 September 2026; US District Court for the District of Massachusetts, State of California et al. v. Mullin et al., memorandum and order of 8 June 2026; Federal Register, "Fee for Certain H-1B Petitions", 25 August 2026."
Written by
xpath.global Editorial Team
Mobility & Immigration Desk
Share

Mobility insights, in your inbox.

Country alerts, programme benchmarks and product updates — once a month, no fluff.