U.S. District Court Declares $100,000 H-1B Fee Unlawful

What’s Happening

On Monday, June 8, 2026, a federal district court in Massachusetts vacated the $100,000 H-1B payment requirement imposed by President Trump's Proclamation 10973, signed on September 19, 2025. The policy is declared unlawful and unenforceable effective immediately. 

What You Need to Know

The court struck down the policy on three independent grounds. 

First, the $100,000 payment is an unconstitutional tax. Only Congress has the power to levy taxes, and Congress never delegated that power to the President through the immigration statutes he relied on. The court drew on the Supreme Court’s 2026 ruling in Learning Resources v. Trump, which reached the same conclusion about International Emergency Economic Powers Act (IEEPA) tariffs.

Second, the agencies exceeded their statutory authority. No law authorized USCIS or the State Department to impose a $100,000 tax. Rather, the existing fee-setting authority in the immigration statutes covers only cost-recovery adjudication fees. 

Third, the policy was arbitrary and capricious. The agencies implemented it without any reasoned explanation, without assessing employers’ reliance interests, and without considering its impact on healthcare and education.

What this Means

Practically speaking, the $100,000 payment requirement is vacated and unenforceable as of today. Employers should not submit the fee for petitions filed after June 8, 2026 absent further judicial or executive action (discussed further below). Petitions denied solely because of the fee requirement may have grounds for reconsideration of the petition denial. The court’s decision is not limited to the plaintiff states; it applies nationwide.

What to Expect Next

Updated Guidance From USCIS

As an initial step, USCIS may issue updated guidance confirming the fee is no longer required. If you have petitions currently pending or held up because of the fee, discuss steps for escalation with immigration counsel. It is not yet clear if and how fees paid prior to this ruling will be refunded to petitioners.

Parallel Litigation & Additional Executive Actions

A parallel case, Global Nurse Force v. Trump, is still pending in the Northern District of California and may produce its own rulings. It’s also possible that the administration may pursue new executive action restricting the H-1B program through different legal mechanisms. Today’s ruling bars the current $100,000 fee as an unauthorized tax, but it does not strip the President of all authority over H-1B entry requirements.

Likely Appeal

The government has the right to appeal today's ruling and given the stakes, an appeal is likely. Employers should understand what that means.

The most immediate risk is that the government asks the court to put today's ruling on hold while the appeal proceeds. If that request is granted, the $100,000 fee could come back,  potentially within days or weeks. For that reason, employers should hold off on making major decisions based on today’s ruling until the situation becomes clearer.

Even if no stay is granted, a full appeal could take well over a year, and there is a real possibility this case ultimately reaches the Supreme Court. A federal court in Washington D.C. already ruled the other way in a related case, which makes Supreme Court review more likely given this conflicting district court rulings.

Filing Cases Subject to the Fee?

Employers may choose to resume H-1B petition filing without the $100,000 payment. However, they should work with immigration counsel to develop contingency plans in the event the fee is reinstated on short notice. Employers should refrain from making major hiring or workforce decisions based solely on the assumption that this ruling will stand undisturbed.

Stay Tuned: This Is a Breaking Alert

Please note that this alert is based on the legal status of the $100,000 as of the moment of the District Court's ruling on June 8, 2026. Information and guidance may change quickly as the administration reacts to the ruling, including through emergency stay motions, agency guidance, or new executive action. We will monitor developments closely and update our recommendations as new information becomes available. 

This alert is for general informational purposes only and does not constitute legal advice. Please consult D&S immigration counsel regarding your specific circumstances. D&S Senior Associate, Paulina Baginska, assisted with the preparation of this alert.