United States: District Court Vacates $100,000 H-1B Fee; Government Expected to Quickly Appeal
June 8, 2026
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At a glance
- A district court has vacated the $100,000 H-1B proclamation fee policy in its entirety, ruling the fee unlawful as an improper use of executive power and unlawful under the Administrative Procedure Act.
- The government is expected to quickly file an appeal of the district court decision and is expected to request a stay, which, if granted, could pause relief from the fee.
- For the time being, USCIS should not require the $100,000 fee for approval of any H-1B petition. However, this could change quickly, and employers should monitor developments with immigration counsel.
The issue
Today, a federal district court in Massachusetts vacated the U.S. Citizenship and Immigration Services (USCIS) policy implementing the $100,000 H-1B fee created by President Trump’s September 19 presidential proclamation. The district court vacated the $100,00 fee policy in its entirety, taking the position that the fee amounts to a tax, for which a presidential proclamation and agency implementation was not a proper exercise of power. The court also declared the policy to be in excess of statutory authority, procedurally deficient, and arbitrary and capricious, and therefore, unlawful under the Administrative Procedure Act (APA). The case is State of California et al. v Markwayne Mullin, et al., Case No., 1:25-cv-13829 (D. Mass., filed Dec. 12, 2025).
The district court granted summary judgment to the plaintiffs, meaning that, for the time being, USCIS is not permitted to collect the $100,00 fee from H-1B employers. The court decision does not address the issue of possible refunds for fees already submitted. Because the decision vacates the $100,000 fee under the APA, the ruling has nationwide impact.
Today’s court decision conflicts with a separate district court decision from December 2025, in which the District of Columbia district court upheld the $100,000 fee. The government is likely to appeal today’s Massachusetts summary judgment decision in short order, and it is possible that the appeals court will stay the Massachusetts district court decision while an appeal is pending. If this occurs, the government would be permitted to implement the $100,000 fee during the appeals process.
What’s next
A swift government appeal and further litigation are expected, so employers should stay in close contact with immigration counsel regarding any developments, including a possible stay of today’s district court decision. In the meantime, however, unless and until a further court order is issued, USCIS should not require the $100,000 fee for the approval of any H-1B petition.
Fragomen is closely following the litigation challenging the presidential proclamation and any impact on implementation. We will provide updates as developments occur.
This alert is for informational purposes only. If you have any questions, please contact the immigration professional with whom you work at Fragomen.
