A federal judge delivered a major victory for employers, universities, healthcare institutions, and skilled foreign workers by striking down the Trump administration’s controversial H-1B $100,000 fee. The ruling invalidated one of the most aggressive attempts in recent years to restrict access to the H-1B program. This decision has significant implications for businesses that rely on international talent to fill critical workforce shortages.
What Was the Trump $100,000 H-1B Visa Fee?
In September 2025, the Trump administration announced a new policy. Employers seeking to sponsor foreign professionals for H-1B visas would need to pay an additional $100,000 government fee. The administration argued the measure would push companies to hire U.S. workers instead of relying on foreign talent.
The fee represented an unprecedented increase over traditional H-1B filing costs. Those costs generally range from several thousand dollars to under $10,000 depending on the employer and circumstances. Critics immediately warned that the H-1B $100,000 fee would put sponsorship out of reach for many employers. Startups, universities, hospitals, research institutions, and smaller businesses would be hit hardest.
Who Brought the Case Against the H-1B $100,000 Fee?
The decision came out on June 8, 2026, by Judge Leo T. Sorokin of the United States District Court for the District of Massachusetts in Boston. The lawsuit came from a coalition of 20 state attorneys general led by California. Judge Sorokin ruled that the fee functioned as a tax that Congress had never authorized. Therefore, it could not lawfully be imposed by the executive branch.
Why Did the Court Overturn the H-1B $100,000 Fee?
The federal court concluded that the administration exceeded its legal authority. It imposed what was effectively a tax without congressional authorization. The judge found that the executive branch cannot create massive new financial burdens on visa applicants and employers without clear approval from Congress. The H-1B $100,000 fee functioned more like a tax than a standard filing fee. The court determined the administration lacked authority to impose it through executive action alone. The fee is no longer valid nationwide.
Update: First Circuit Refuses to Reinstate the H-1B Fee
After losing in the district court, the federal government appealed and asked the U.S. Court of Appeals for the First Circuit to temporarily suspend the lower court’s ruling. Granting that request would have allowed the government to resume enforcing the fee while the appeal was pending.
On July 24, 2026, the First Circuit denied the request. The appeals court found that the government had not made a sufficiently strong showing that it was likely to win the appeal. The court noted that the immigration statutes relied upon by the administration authorize the president to restrict the entry of certain foreign nationals. However, they do not expressly authorize a $100,000 payment requirement of this kind.
The First Circuit also found that the government had not adequately addressed the potential harm the fee could cause to states, public institutions, employers, and members of the public who rely on medical and educational services. As a result, the lower court’s order remains effective. The fee is not currently being enforced.
This is significant relief for American employers, especially hospitals, universities, schools, technology companies, research institutions, and smaller businesses that rely on highly skilled foreign professionals.
Does This Mean the Fee Is Permanently Gone?
Not necessarily. The First Circuit’s decision concerned the government’s request for a temporary stay. It was not the final appellate decision resolving every issue in the case.
The government may continue its appeal and ask the First Circuit to reverse the district court’s final judgment. The administration may also ask the U.S. Supreme Court to temporarily reinstate the fee or eventually review the underlying legal dispute. The original proclamation stated that the restriction would remain in effect for 12 months beginning September 21, 2025, unless extended. Any attempt by the administration to renew or replace the policy may also affect what happens next.
Why the H-1B Program Matters to U.S. Employers
The H-1B program plays a critical role in the U.S. economy. Many employers depend on highly skilled foreign professionals to fill positions that require advanced degrees and specialized expertise. Healthcare systems rely on H-1B physicians and researchers. Universities recruit international professors and scientists. Technology companies hire engineers, developers, and AI specialists through the program.
Had the H-1B $100,000 fee remained in effect, many employers would likely have abandoned sponsorship altogether. Smaller employers would have taken the hardest hit. This creates a system in which only the largest corporations could realistically afford to sponsor foreign workers. Learn more about common H-1B myths that affect employer decisions.
What Employers Should Do Now
Employers should not include the additional $100,000 payment solely because of the blocked proclamation unless new official instructions or a later court decision require it. Employers must still comply with all ordinary H-1B requirements. This includes obtaining a certified Labor Condition Application, offering the required wage, proving that the position qualifies as a specialty occupation, establishing the worker’s qualifications, and paying all applicable standard filing fees.
Employers considering consular-processing cases for workers outside the United States should proceed carefully. The legal situation may change while a petition is pending. Before submitting an H-1B petition, employers should confirm the latest USCIS and Department of State instructions rather than relying on outdated fee charts or online articles.
What H-1B Workers Should Do Now
The court’s ruling is encouraging for foreign professionals who received job offers but were unable to move forward because their employers could not afford the additional fee. The ruling may particularly benefit physicians, researchers, professors, teachers, engineers, and technology professionals whose employers had postponed or cancelled sponsorship plans.
However, the court decision does not guarantee approval of any H-1B petition or visa. Every applicant must still satisfy the normal H-1B requirements. Foreign professionals should also know their H-1B visa holder rights and ensure they are working with qualified immigration counsel. Foreign workers should not make irreversible travel, resignation, or relocation decisions until they understand their petition status and the latest government procedures.
Employers and workers may also want to explore whether another immigration option, such as O-1, L-1, TN, E-2, cap-exempt H-1B, or employment-based permanent residence, may be available.
Shepelsky Law Group on the H-1B Fee Ruling
At Shepelsky Law Group, we believe that immigration policy must be grounded in the law and go through proper legal procedures. Agencies cannot impose sweeping new costs on employers and immigrants without clear congressional authority. The court’s decision reinforces an important principle: major changes to our immigration system must comply with the Constitution and the limits established by Congress.
We will continue monitoring developments in this case and any future appeals that may affect employers, H-1B professionals, and the broader immigration system.
Have a Work Visa Question? Call Shepelsky Law Group.
The ruling is a significant win for businesses, universities, healthcare employers, and skilled foreign workers who rely on the H-1B program. It also serves as a reminder that immigration policy changes implemented through executive action often face intense judicial scrutiny. If you want to legalize in the U.S. or have a work visa question, call Shepelsky Law Group at (718) 769-6352 or schedule a consultation at ShepelskyLaw.com.