Federal Court Vacates $100,000 H-1B Visa Fee

Background

On September 19, 2025, the administration issued a proclamation requiring a $100,000 payment for certain H-1B petitions involving workers outside the United States. The proclamation directed federal agencies to restrict decisions on covered H-1B petitions that were not accompanied by the payment, subject to limited exceptions.

The fee created significant concern for employers that rely on H-1B workers, particularly in industries such as technology, healthcare, education, research, and other specialized fields. The H-1B program allows U.S. employers to temporarily employ foreign workers in specialty occupations, often requiring at least a bachelor’s degree or equivalent experience.

Federal Court Strikes Down the Fee

On June 8, 2026, Judge Leo Sorokin of the U.S. District Court for the District of Massachusetts struck down the $100,000 H-1B fee. The court found that the fee functioned as an unauthorized tax and that the executive branch lacked the authority to impose it without congressional approval. The court also concluded that the policy violated separation of powers principles and the Administrative Procedure Act.

The ruling was issued in favor of 20 Democratic-led states that challenged the fee. It marked the first major legal defeat for the policy, which has significantly impacted the H-1B visa program for highly skilled foreign workers.

Administration Appeals, Court Temporarily Pauses the Ruling

The ruling does not mean the issue is fully resolved. The administration appealed the decision shortly after it was issued and, on June 12, 2026, asked the district court to stay its order while the U.S. Court of Appeals for the First Circuit considers the government’s request for emergency relief.

Judge Sorokin agreed to temporarily pause the effect of his June 8 order while the appellate court weighs in. As a result, the legal status of the $100,000 fee remains uncertain, and employers should not assume that the fee has been permanently eliminated.

In its court filing, the government argued that it is likely to succeed on appeal because the fee is a justified exercise of foreign commerce and immigration authority. The government also argued that the district court’s order interferes with the President’s ability to address national security concerns tied to alleged abuse of the H-1B program.

The fee, which applies to certain new H-1B hires that require processing at consulates outside the United States, is also facing other legal challenges. Additional decisions remain pending in other federal courts, including cases in California and Washington, D.C.

What This Means for Employers

Employers should not assume that the $100,000 fee has been permanently eliminated. Because the case is on appeal and the district court’s ruling has been temporarily paused, impacted employers may still need to account for the fee when evaluating H-1B filings.

This is especially important for employers preparing petitions for foreign national workers who are outside the United States or who may require consular processing. Employers should confirm the current filing requirements before submitting any H-1B petition and should avoid relying on outdated guidance.

Recommended Next Steps for Employers

To prepare for continued uncertainty, employers should consider the following steps:

• Review Pending and Planned H-1B Filings. Identify any H-1B petitions that may be impacted by the $100,000 fee requirement, particularly petitions involving workers outside the United States or those requiring consular processing.
• Review Potential Refund or Recoupment Options. Employers that paid the $100,000 fee on one or more H-1B petitions should consult immigration counsel to determine whether any refund or recoupment options may be available if the fee is ultimately invalidated.
• Evaluate Workforce Planning Impacts. Employers that rely on H-1B workers should consider how continued litigation may affect hiring timelines, start dates, relocation plans, and immigration budgets.
• Communicate Carefully with Affected Employees. Provide clear, accurate updates to impacted employees, while avoiding assurances about outcomes that remain subject to court action.
• Consult Immigration Counsel Before Filing. Because the fee’s status may change quickly during the appeal, employers should confirm current requirements before submitting petitions.
• Monitor Further Developments. Employers should continue monitoring the First Circuit appeal, other pending legal challenges, and any updated guidance from USCIS, the Department of State, or the courts.

How HR Works Can Help

HR Works will continue to monitor and update you on developments related to the $100,000 H-1B fee and other employment-related immigration updates.

Current clients may contact their designated HR Consultant for additional information.

Not an HR Works client? To learn more about how HR Works can help, contact us by visiting our website and completing a “Contact Us” form or calling us toll-free at 1-877-219-9062.