H-1B Visa Update: Federal Court Strikes Down $100,000 H-1B Visa Fee as Unauthorized Tax

In a major development following our previous coverage of President Trump’s Proclamation regarding the new H-1B $100,000 fee, a federal judge has completely vacated the policy. On June 8, 2026, U.S. District Judge Leo T. Sorokin of the District of Massachusetts struck down the $100,000 H-1B payment requirement, declaring it unlawful.

The court ruled that the $100,000 payment requirement constituted an unauthorized tax, rather than a penalty or a simple regulatory fee. While the government argued that the President had broad authority to restrict the entry of noncitizens under the Immigration and Nationality Act (INA), Judge Sorokin held that the INA does not delegate Congress’s exclusive constitutional power to lay and collect taxes to the executive branch.

Furthermore, the court found that the government’s swift implementation of the fee via Presidential Proclamation violated the Administrative Procedure Act (APA). The agencies failed to comply with mandatory notice-and-comment rulemaking procedures, exceeded their statutory fee-setting authority, and acted arbitrarily and capriciously by not considering employers’ reliance interests or offering a reasoned explanation for the massive new financial burden.

What This Means Going Forward

Because the court vacated the policy implementing the $100,000 payment requirement in its entirety, the complex web of payment instructions and exemptions we previously analyzed is now moot. Employers sponsoring foreign talent are no longer required to pay this $100,000 exaction when filing new H-1B petitions. If your case was subjected to the fee either through consular processing or a Request for Evidence, reach out to immigration counsel for next steps.  We will continue to monitor the docket for any potential appeals by the government.