In a major development for H-1B employers and workers, a federal district court in Massachusetts on June 8, 2026 vacated the U.S. government policy implementing the $100,000 H-1B fee created by the September 19, 2025 presidential proclamation. Judge Leo T. Sorokin ruled that the charge functions as a tax that neither a presidential proclamation nor agency action could lawfully impose, and found the USCIS implementation to be in excess of statutory authority, procedurally deficient, and arbitrary and capricious in violation of the Administrative Procedure Act (APA).
The relief was short-lived. The federal government filed a notice of appeal and asked the court to pause its own ruling. On June 12, 2026, Judge Sorokin denied a full stay pending appeal but granted a narrower administrative stay, temporarily freezing the vacatur while the U.S. Court of Appeals for the First Circuit considers the government’s anticipated stay motion. The practical result: for now, the $100,000 fee is back in effect for affected H-1B petitions filed for, or only approvable through, consular notification.
The fee, first announced in late 2025, sent shockwaves through employers who rely on cap-subject H-1B hiring, particularly in technology, research, and healthcare. Its legal status now hinges on the First Circuit, which will decide whether the district court’s vacatur takes effect or remains paused during the appeal.
For employers and beneficiaries, the message is to plan conservatively. Until the appeals court rules, USCIS may continue to require the payment, and petitions structured for consular processing remain most exposed. Applicants weighing an H-1B path should watch this litigation closely and keep documentation of any fees paid, since the ultimate outcome could affect refunds or future filings.
Many affected workers also hold advanced degrees and strong research records that may qualify them for a self-petition that avoids employer-sponsored H-1B constraints entirely.
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Source: U.S. District Court (D. Mass.) ruling — reported via Fragomen