District Court Vacates $100,000 H-1B Fee
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Rita Georges
Managing Partner
A federal district court in Massachusetts today struck down the Trump Administration's $100,000 H-1B fee, ruling the policy unlawful in its entirety. Today's Massachusetts's court decision in State of California v. Markwayne Mullin is a significant win for employers and H-1B workers, but the government has already signaled it will appeal, and relief could be short-lived.
Background
In September 2025, President Trump issued a presidential proclamation titled "Restriction on Entry of Certain Nonimmigrant Workers," which imposed a $100,000 payment requirement on employers filing new H-1B petitions. The proclamation framed the fee as a measure to combat what the administration described as large-scale replacement of American workers through the H-1B program. Prior to this change, total H-1B filing fees typically ranged from roughly $2,000 to $5,000 per petition.
The proclamation had an immediate chilling effect. Several major employers announced they would pause H-1B sponsorship rather than absorb the cost. Twenty states, led by California, filed suit to challenge the fee, arguing it exceeded presidential authority and would cause harm in sectors like education and healthcare that rely heavily on H-1B workers.
The Ruling
U.S. District Judge Leo T. Sorokin ruled that the $100,000 fee was unlawful on two independent grounds.
The fee is a tax, not a regulatory charge. The court determined that the $100,000 payment requirement amounts to a tax rather than a fee or penalty. This distinction is critical: the power to levy taxes rests with Congress under the Constitution, not with the executive branch. Although the government argued that the President had broad authority to restrict the entry of foreign nationals and impose conditions on that entry, Judge Sorokin rejected the argument that these provisions authorize imposing a payment of this magnitude. In the court's words, "the policy imposes a tax on H-1B petitions without the requisite delegation by Congress."
The policy violated the Administrative Procedure Act. The court also found that the implementation of the fee failed to comply with the procedural requirements of the APA, which governs how federal agencies create binding rules. Proclamation-based policies that bypass the standard notice-and-comment rulemaking process are vulnerable to challenge on these grounds, and the court agreed with the plaintiffs that the proper procedures were not followed here.
Having found the fee unlawful on both grounds, the court vacated the policy implementing the proclamation. This is a complete vacatur. The fee is struck down nationwide, not merely enjoined for the plaintiff states.
What This Means Right Now
For the time being, USCIS should not require the $100,000 fee for any H-1B petition. Employers who have been delaying filings or declining to sponsor H-1B workers because of the cost may have a window to move forward.
What Comes Next
The government has indicated it will appeal the decision and is expected to request an emergency stay from the appellate court. If a stay is granted, the fee could be reinstated while the appeal is pending and potentially with very little notice. This is not a final resolution of the issue, and further litigation is expected. Do not assume this ruling is permanent. Plan for the possibility that the fee returns during the appellate process.
Important
Do not assume this ruling is permanent. Plan for the possibility that the fee returns during the appellate process.
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