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

Takeaways

• A federal district court has struck down the $100,000 fee the Trump Administration imposed on certain H-1B petitions.
• The court ruling could allow affected beneficiaries of approved H-1B petitions obtain visas and travel to the U.S. without having to pay the exorbitant fee.
• The government is expected to consider appellate options, and employers should continue to monitor developments.

On June 8, 2026, in State of California et al. v. Noem et al. (1:25-cv-13829), a federal district court in Massachusetts ruled that the $100,000 fee President Donald Trump imposed on certain H-1B petitions constitutes an unlawful tax and vacated the fee in its entirety.

President Trump’s Sept. 19, 2025, Presidential Proclamation, “Restriction on Entry of Certain Nonimmigrant Workers,” introduced a new $100,000 fee requirement for new H-1B petitions for foreign workers outside the United States. The fee was one of several administrative and policy changes the Trump Administration has sought to implement with the aim of restricting and tightening rules surrounding the H-1B nonimmigrant visa program. The fee was set to expire after one year, if not extended.

In its June 8 decision, the court referenced the recent SCOTUS ruling striking down the President’s tariffs, stating that the president does not have unilateral authority to impose taxes without congressional approval. The court declared the proclamation implementing the $100,000 fee unlawful and vacated the fee in its entirety, effective immediately.

The court also issued declaratory relief in favor of the plaintiffs but declined to enter a permanent injunction, concluding it was not necessary.

For employers, the practical impact of the court’s decision will depend largely on the outcome of any appellate review and how USCIS responds. However, the ruling vacates the $100,000 fee requirement for impacted H-1B petitions, potentially allowing employers to pursue H-1B sponsorship through consular notification without incurring the additional charge. Employers and foreign nationals who postponed H-1B sponsorship or related immigration plans as a result of the fee may now have options available in light of the court’s decision.