On June 8, 2026, a federal judge in Boston delivered a significant win for U.S. employers who depend on the H-1B visa program. U.S. District Judge Leo T. Sorokin of the District of Massachusetts struck down the Trump administration’s $100,000 supplemental fee on new H-1B petitions, ruling that the executive branch imposed an unauthorized tax without congressional approval.
At NPZ Law Group, we have been closely monitoring this litigation since the fee was introduced through Presidential Proclamation 10973 on September 19, 2025. The ruling removes a massive financial barrier that had been disrupting hiring decisions across technology, healthcare, higher education, and other industries.
Background: How the $100,000 Fee Came About
The fee took effect on September 21, 2025, just two days after the Proclamation was signed. It applied to new H-1B petitions filed on behalf of workers outside the United States, adding $100,000 on top of existing regulatory and statutory fees that previously ranged from approximately $960 to $7,595.
For many employers — particularly state universities, public hospitals, and smaller businesses — the cost made new H-1B sponsorships economically impossible. A coalition of 20 state attorneys general filed suit in December 2025, arguing that the fee exceeded presidential authority and violated the Administrative Procedure Act.
What the Court Decided
Judge Sorokin granted summary judgment in favor of the plaintiff states on all claims and vacated the policy in its entirety. The court’s key findings:
- The $100,000 payment functions as a tax, not a regulatory fee — and only Congress has the constitutional authority to impose taxes.
- The Proclamation exceeded the president’s delegated authority under the Immigration and Nationality Act.
- The policy violated the APA by bypassing required notice-and-comment rulemaking procedures.
- The implementation was arbitrary, capricious, and procedurally deficient.
The ruling means USCIS is currently prohibited from collecting the $100,000 fee from H-1B employers.
What This Means for Employers Right Now
The practical impact of the ruling is immediate and significant:
- New H-1B petitions — including cap-subject, cap-exempt, transfers, and amendments — can proceed without the $100,000 surcharge.
- Petitions that were delayed internally due to the fee burden can now move forward under standard statutory filing fees.
- Workers outside the United States requiring consular processing are no longer subject to the fee.
Important: The Legal Battle Is Not Over
Employers should understand that this is a district court ruling — not a final resolution. A few important considerations:
- The federal government is widely expected to appeal the decision, and the appeals process could result in the fee being reinstated during the pendency of that appeal.
- A conflicting ruling already exists from the District of Columbia district court, which upheld the $100,000 fee in December 2025. This circuit split adds uncertainty.
- The court’s ruling does not address whether employers who already paid the fee are entitled to refunds.
NPZ Law Group will continue to monitor this case closely and provide updates as the government’s next steps become clear.
“The court’s decision provides welcome clarity for employers that depend on the H-1B program to recruit and retain talent. A fee of this magnitude would have created significant barriers for employers and foreign professionals alike. While the legal process may continue, this ruling helps preserve access to an important employment-based immigration pathway.”
— David Nachman, Esq., Managing Partner, NPZ Law Group
What Employers Should Do
If you had H-1B petitions on hold due to the fee, now is the time to reassess your hiring plans and move forward. However, given the likelihood of an appeal, working closely with qualified immigration counsel on timing and strategy is important.
Beyond this ruling, employers should also keep an eye on the Department of Labor’s pending prevailing wage rule, which could significantly increase minimum salary requirements for H-1B workers if finalized. H-1B compliance, sponsorship planning, and workforce strategy remain as important as ever.
Contact NPZ Law Group
NPZ Law Group assists employers, investors, and foreign professionals with U.S. and Canadian immigration matters. If you have questions about how this ruling may affect your H-1B program or workforce plans, contact us at info@visaserve.com, call 201-670-0006 ext. 104, or visit www.visaserve.com.