District Court Judge Strikes Down Trump’s $100k Payment Requirement for H-1Bs

On June 8, 2026, the federal District Court of Massachusetts vacated President Trump’s proclamation and policies enforcing a $100,000 fee for certain H-1B visa applications. The court found that the fee is an unauthorized tax on U.S. employers and therefore unenforceable. This ruling establishes that since Congress has not explicitly given President Trump the authority to tax, the proclamation and policies enforcing the fee exceed the scope of President Trump’s presidential authority.

What is the $100,000 H-1B Fee?

This ruling comes eight months after President Trump issued the “Restriction on Entry of Certain Nonimmigrant Workers” proclamation, enforcing a $100,000 fee on U.S. employers seeking to hire specialized workers using the H-1B program. Per the Proclamation, the fee applies to certain H-1B petitions filed on or after September 21, 2025, on behalf of beneficiaries who are outside the United States and do not have a valid H-1B visa. This includes H-1B petitions requesting a change-of-status, extension, and/or amendment, which have been denied by USCIS and thus require consular processing.

The administration claimed the fee is a monetary penalty rather than a tax, which would keep the proclamation and its effect within the scope of the President’s power. However, Judge Leo Sorokin disagreed with the administration, stating that “the Policy improperly levies a tax on H-1B petition[s].”[1]

What does this mean for employers seeking H-1B visas for their employees?

The U.S. District Judge set the $100,000 fee aside as relief under the Administrative Procedure Act. Until decided otherwise, USCIS cannot enforce this fee on U.S. employers for incoming H-1B employees that are outside of the U.S. without a valid H-1B visa.

Although this ruling comes months after the FY2027 H-1B lottery registration window, it could possibly allow for U.S. employers to feel some relief for prospective and pending H-1B petitions.

Is this a final decision?

No. The administration is likely to appeal the decision to the U.S. Court of Appeals. If the U.S. Court of Appeals upholds the District Court’s decision, the administration may appeal to the U.S. Supreme Court. In the interim, if the administration abides by the federal judge’s ruling, there may be a temporary window for U.S. employers to avoid the burden of the $100,000 fee.

Should you have further questions or concerns about the impact of this decision, the experienced attorneys at Murray Osorio PLLC can help you understand your options. Call (800) 929-7142 or contact us online today to schedule a consultation.