Court Strikes Down the $100,000 H-1B Fee — but a Stay Reinstates It Pending Appeal

What the court ruled

On June 8, 2026, Judge Leo Sorokin of the U.S. District Court for the District of Massachusetts ruled that the $100,000 fee on certain new H-1B petitions is unlawful. The court found the fee functions as a tax — and that the power to impose a charge of that magnitude belongs to Congress, not the President. The fee came from a September 19, 2025 Presidential Proclamation requiring employers to pay $100,000 for certain new H-1B petitions; a coalition of 20 state attorneys general (led by California) had challenged it as exceeding executive authority under the Constitution and the Immigration and Nationality Act.

Important: the fee is back — for now

The win was short-lived in practice. On June 12, 2026, Judge Sorokin issued an administrative stay of his own ruling, effectively reinstating the $100,000 fee while the administration seeks emergency relief from the U.S. Court of Appeals for the First Circuit. In other words, the fee was struck down on the merits at the district level but remains collectible pending appeal.

Our analysis: what it means for employers and workers

• Budget as if the fee still applies. Because of the stay, employers filing affected new H-1B petitions should assume the $100,000 charge is in effect until the appeal is resolved.
• The final answer rests with the First Circuit. The district court's reasoning — that the fee is an unauthorized tax — is a strong signal, but the appeals court (and possibly the Supreme Court) will decide.
• Watch the timeline. How and when the appeal is decided could significantly affect the cost of filing.

This is a fast-moving legal fight, and we will follow the appeal.

Source

Original — U.S. District Court for the District of Massachusetts

This is original commentary based on the source below, not legal advice. Confirm details with the official source.