Federal Court Strikes Down $100,000 H-1B Fee

June 11, 2026

 

What's New

On June 8, 2026, the U.S. District Court for the District of Massachusetts granted summary judgment in favor of the coalition of states that challenged the Trump Administration’s $100,000 H-1B visa payment requirement. The court in California v. Mullin held that the $100,000 fee – implemented through a presidential proclamation and agency guidance – was unlawful and vacated it.

The court concluded that the $100,000 fee functioned as a tax, not a permissible user fee, and that Congress had not delegated taxing authority to the President or the Executive Branch under the Immigration and Nationality Act. As a result, the policy violated separation-of-powers principles.

The court also found multiple Administrative Procedure Act violations, including failure to follow notice-and-comment rulemaking, exceeding statutory authority, and acting arbitrarily and capriciously. The decision emphasizes limits on executive authority to reshape the H-1B program through large financial conditions.

What It Means

For the time being, USCIS is not permitted to collect the $100,000 fee from H-1B employers. The government is expected to appeal the Massachusetts decision, and it may also seek a stay pending appeal. If a stay is granted, the government could resume implementing the $100,000 fee while the case is reviewed.

What You Should Do

Employers that delayed or reconsidered H-1B hiring due to the $100,000 fee should reassess workforce planning. While the ruling vacates the policy nationwide, further litigation is likely. Employers should continue monitoring developments and remain prepared for additional changes to H-1B costs or eligibility rules.





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