Federal Court Invalidates $100K H-1B Fee

On Monday, June 8, 2026, a federal judge in Massachusetts invalidated the $100,000 fee for new H-1B visas,¹ determining that President Trump lacked the authority to impose a tax on this visa program for highly skilled workers.

A White House proclamation issued on September 19, 2025, imposed a $100,000 fee on H-1B petitions for foreign workers seeking entry to the United States. A coalition of 20 states filed suit against this proclamation.

The court sided with the plaintiffs, holding that the fee was effectively a tax and asserted that the executive branch exceeded its constitutional authority, as Congress possesses the exclusive constitutional power to levy taxes. The court also determined that the administration violated the Administrative Procedure Act by failing to follow the necessary notice and comment process, thereby implementing a policy without allowing public input, and deemed the action arbitrary and capricious.

The administration has signaled its intention to appeal the ruling and to seek a stay of the decision. The administration’s position to request a stay would be consistent with what has been done in the past. A stay would resume the application of the fee and bring continued uncertainty to an already confusing scenario for U.S. employers that are deciding whether to continue paying or wait until further developments on this issue. If the decision remains, it calls into question how employers may seek reimbursement for fees paid. Further, it is unclear whether new applications can be filed without the fee being paid in advance. This would be more likely if the stay is not issued. Given that uncertainty surrounding immigration policies in this area, employers are advised to proceed with caution on their next actions, as it may change unexpectedly.

Littler will continue to track the legal developments regarding the H-1B fee and will provide updates as the situation evolves.