Immigration Update: Federal Court Overturns $100,000 H-1B Visa Fee

ALBANY, NY | On June 8, 2026, a federal judge in Massachusetts struck down the $100,000 fee that had been imposed on new H-1B visa petitions since September 2025. The ruling is a significant development for employers and foreign workers who have been navigating the financial and logistical challenges created by the fee since it took effect.

Background

In September 2025, President Trump issued a Presidential Proclamation imposing a $100,000 payment requirement on new H-1B petitions for workers entering the United States from abroad. The administration framed the fee as a measure to address what it characterized as systemic abuse of the H-1B program and the displacement of American workers. As we covered in our November 2025 update, USCIS subsequently issued guidance clarifying which petitions were subject to the fee and how certain exceptions, including a government shutdown exception, would be applied.

The Ruling

U.S. District Judge Leo Sorokin of the District of Massachusetts sided with a coalition of 20 states that challenged the policy, finding that the administration lacked the authority to impose the fee without congressional approval. The court concluded that the $100,000 charge functioned as a tax, and that only Congress has the power to impose such a requirement on immigration petitions. The ruling vacates the fee on a nationwide basis.

The states argued that the fee was causing real harm, particularly in fields like education, healthcare, and research, where employers rely heavily on H-1B workers to fill critical roles.

What Happens Next

While the ruling is a significant setback for the administration’s policy, it is unlikely to be the final word. The Department of Homeland Security has stated it intends to appeal the decision. Notably, the original proclamation establishing the fee is scheduled to expire in September 2026, meaning the litigation timeline and the policy’s expiration date may converge in the months ahead.

It is also worth noting that other federal courts have reached different conclusions on the legality of the fee, and additional lawsuits are pending in other circuits. Employers and workers should expect continued uncertainty while the appeals process plays out.

As Douglas Goldman, Partner and head of The Towne Law Firm’s immigration practice, has noted in connection with recent immigration policy shifts: courts may ultimately determine the scope of the executive branch’s authority to implement this type of change, and that process is still very much underway.

Key Takeaways

• A federal judge vacated the $100,000 H-1B fee nationwide on June 8, 2026, finding it an unauthorized tax.
• The ruling blocks the fee for now, but the administration has signaled it will appeal.
• The original proclamation is set to expire in September 2026, adding a time-sensitive dimension to the ongoing litigation.
• Employers and H-1B workers should continue monitoring developments, as the legal landscape remains unsettled.

This blog post is intended for informational purposes only and does not constitute legal advice. The information provided is current as of the date of publication and is subject to change. Consult with a qualified attorney regarding your specific situation.

The Towne Law Firm advises employers and individuals on a wide range of employment-based immigration matters. Our team provides practical guidance on visa strategy, regulatory compliance, and workforce planning to help clients move forward with clarity and confidence.