On June 8, the United States District Court for the District of Massachusetts issued a decision in State of California et al. v. Mullin et al., granting summary judgment in favor of 20 plaintiff states and vacating in its entirety the federal policy implementing a $100,000 supplemental fee payment requirement for H-1B visa petitions. The ruling eliminates a major cost barrier to H-1B sponsorship and restores the prior fee structure while the decision remains in effect.
What changed
The $100,000 supplemental fee payment was mandated by a presidential proclamation issued on Sept. 19, 2025, and applicable for certain H-1B petitions filed after Sept. 21, 2025, on behalf of workers outside the United States in addition to the existing statutory and regulatory fees.
In its June 8, 2026 Memorandum and Order, the court ruled in favor of the plaintiff states, holding that the $100,000 H-1B fee was unlawful. The court concluded that the administration’s implementation of the fee exceeded executive authority and violated governing legal principles, including the Administrative Procedure Act (APA) and constitutional separation of powers.
The decision emphasized that Congress—not the Executive Branch—holds the authority to impose taxes or fees of this magnitude in the immigration context. For now, the $100,000 payment requirement is vacated and unenforceable.
Why it matters
For employers and H-1B practitioners, the financial impact is immediate and substantial. While the ruling is in effect, employers have the option to submit H-1B petitions that would have been subject to the fee without including the fee. The ruling effectively restores the H-1B program to its pre-Proclamation cost structure, based on existing statutory filing fees.
The practical reach was narrow but painful for certain sectors. The $100,000 fee requirement for H-1B visas, which took effect on Sept. 21, 2025, primarily applies to new H-1B petitions filed on behalf of applicants who are outside the U.S. — a group that makes up a very small percentage of those who file for the visas. The proclamation significantly increased the cost of H-1B petitions, which, prior to the change, typically totaled between $960 and $7,595 in regulatory and statutory fees. Some hospitals, universities, and schools have been affected by the supersize fee, however, limiting their ability to hire foreign national teachers, researchers, and medical staff, the plaintiffs argued.
However, appeals remain a realistic possibility. It remains to be seen whether the federal government will appeal the decision. If appealed, the case could proceed to the U.S. Court of Appeals for the First Circuit and potentially to the U.S. Supreme Court. One of these courts could reinstate the fee. Until then, practitioners should budget only the standard statutory and regulatory H-1B fees and advise cap-exempt and other affected employers that the path forward has widened.
Way forward
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File H-1B petitions without the $100,000 payment. Employers seeking to petition for H-1B workers outside the U.S. should prepare petitions using only the standard filing and regulatory fees (typically $960–$7,595 per petition). The supplemental fee is not currently due or enforceable.
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Review pending petitions and filings. Employers who paid the $100,000 fee or declined to file because of the fee should consult counsel about refund possibilities and whether to refile petitions that were shelved due to cost.
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Monitor appellate activity. The case may be appealed to the First Circuit Court of Appeals. Practitioners should track the case (State of California et al. v. Mullin et al., 1st Cir.) and be prepared to advise clients if the fee is reinstated by a higher court.
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Document the current fee structure. When advising clients on H-1B sponsorship costs, note that current fees reflect the pre-proclamation schedule; include a caveat that policy can change and recommend verification against current USCIS guidance before filing.
Disclaimer
This article is for general informational purposes only and does not constitute legal advice. Fola is a software company, not a law firm. Immigration law is complex and changes frequently. Do not rely on this article as a substitute for advice from a licensed immigration attorney licensed to practice in your jurisdiction. Always verify the status of this ruling and current fee requirements against the primary source and USCIS’s official guidance before filing.