The legal fight over the $100,000 H-1B fee took a dramatic turn in June 2026, and employers need to understand exactly where things stand today. On June 8, 2026, a federal district court in Massachusetts ruled in State of California v. Mullin that the fee was an unlawful tax the executive branch had no authority to impose, and struck the policy down entirely. That looked like a major win for employers. Then, just four days later, on June 12, 2026, the same court paused its own ruling after the government filed an appeal, meaning USCIS currently retains authority to keep collecting the fee for qualifying H-1B petitions while the appeal plays out.
How We Got Here
The fee originated from a Presidential Proclamation signed September 19, 2025, which required a $100,000 payment for new H-1B petitions filed for workers outside the United States who needed consular processing abroad. A coalition of twenty state attorneys general challenged the policy, arguing it functioned as a tax that only Congress has the authority to impose. The Massachusetts court agreed, finding that the Immigration and Nationality Act gives the executive branch power to regulate entry, not to tax, and that the way the fee was rolled out also violated federal rulemaking requirements. Notably, a different court in Washington, D.C. reached the opposite conclusion in a separate challenge brought by the U.S. Chamber of Commerce, which means these conflicting rulings are likely headed toward further appellate review, and possibly the Supreme Court.
What This Means for Employers Right Now
Despite the court’s finding that the fee is unlawful, it remains in effect today for qualifying petitions because of the stay. Employers should not treat this ruling as a reason to stop budgeting for the fee or to assume it has gone away. The safest approach is to continue planning as though the fee will apply to any new H-1B petition involving consular processing, while staying in close contact with immigration counsel as the appeal moves forward. Employers who have already paid the fee should keep thorough documentation, since a final ruling striking down the policy could eventually open the door to a refund or credit process, though nothing along those lines has been established yet.
This case is moving quickly and the details can shift with very little notice, sometimes within days as seen here. Employers with pending or upcoming H-1B filings involving consular processing should check in with their immigration counsel before assuming either outcome.
Frequently Asked Questions
Is the $100,000 H-1B fee currently in effect?
Yes. Even though a court found the fee unlawful, that same court paused its ruling, so USCIS can still collect the fee for qualifying petitions while the appeal is pending.
Which H-1B petitions does the fee apply to?
It applies to new H-1B petitions filed for beneficiaries outside the United States who require consular processing. It does not apply to extensions, amendments, or change of status filings for workers already in the U.S.
Why did two different courts reach opposite conclusions?
A Massachusetts court found the fee to be an unconstitutional tax, while a Washington, D.C. court in a separate case upheld the same policy. Conflicting rulings like this often lead to further appellate review.
Should employers stop paying the fee now?
No. Until the appeals court rules or the stay is lifted, the fee remains an active requirement for qualifying petitions, and employers should continue to plan accordingly.
What should employers who already paid the fee do?
Keep detailed records of the payment. If the fee is ultimately struck down on appeal, documentation will likely be necessary to pursue any refund or credit process that may be established.
If your organization needs help navigating H-1B filings while this litigation continues, our attorneys are available to assist. If you or your family members have any questions about how Special Immigrant Juvenile Status or other immigration matters may affect you, or if you want to access additional information about immigration and nationality laws in the United States or Canada, please do not hesitate to contact the immigration and nationality lawyers at NPZ Law Group. You can reach us by emailing info@visaserve.com or by visiting our website at www.visaserve.com for more information.