A federal court in Massachusetts vacated the $100,000 supplemental payment requirement imposed on employers filing certain H-1B visa petitions. The district court ruled the fee unlawful as an improper use of executive power and unlawful under the Administrative Procedure Act. For now, USCIS will not collect the fee—but the ruling is subject to an imminent government appeal.
What changed
President Trump created the fee through Presidential Proclamation 10973, titled “Restriction on Entry of Certain Nonimmigrant Workers,” signed on September 19, 2025 and implemented on September 21, 2025. The proclamation required employers to pay a $100,000 surcharge on top of standard H-1B filing fees for each new petition.
The case was brought by 20 Democratic state attorneys general, who argued that the surcharge damaged hiring in healthcare, education and technology. Judge Leo Sorkin held that the fee is a tax and that only Congress has the authority to change immigration policy and to levy taxes. The court explained that APA vacatur “operates upon the agency action itself.” The court vacated the policy implementing the proclamation.
The vacatur is not limited to the plaintiff states. USCIS should not require the $100,000 fee for approval of any H-1B petition as of the date of the ruling.
Why it matters
Employers seeking new H-1B workers had been required to pay the $100,000 surcharge on top of standard filing fees, which typically ranged from $2,000 to $5,000. This decision restores the pre-September 2025 fee structure.
For employers, the immediate relief is significant: you no longer face a $100,000 surcharge per petition. The change affects sectors already named in the litigation, including technology companies, school systems and rural hospitals that said the fee pushed recruiting costs far beyond standard levels. For foreign workers, sponsorship returns to the earlier fee structure. Workers from India and China were among those who had been priced out after the supplementary charge took effect.
However, the fee may return on appeal. The government is expected to quickly file an appeal of the district court decision and is expected to request a stay, which, if granted, could pause relief from the fee.
A second complication is refunds. More than 200,000 applicants who paid under Mullin’s account may seek their money back, though the Department of Homeland Security had not issued guidance by June 8, 2026 on whether vacating the policy will apply retroactively.
Way forward
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Consult immigration counsel before filing or paying the $100,000 fee. While the court order is in effect, monitor DHS and DOL announcements for any emergency stay or new guidance. The landscape may shift quickly on appeal.
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For pending or planned H-1B filings, do not submit the $100,000 payment. Standard filing fees ($2,000–$5,000) should apply. If you’ve already paid, document the payment and begin tracking DHS guidance on refund procedures.
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For currently pending petitions that already paid the $100,000 fee, request a refund from USCIS once DHS issues retroactivity guidance. This guidance has not yet been published.
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Plan around appellate risk. If the government wins on appeal, the $100,000 fee could be reinstated. Until final appellate resolution, maintain flexibility in H-1B scheduling and communicate clearly with prospective visa sponsors about fee uncertainty.
Disclaimer
This article is for informational purposes only and does not constitute legal advice. It is written by a software company, not a law firm. You should consult a licensed immigration attorney to understand how this ruling applies to your specific situation and to stay informed of any appeals or policy changes. The legal landscape around this fee is developing rapidly; verify all information against the primary source linked above and consult your attorney for the latest guidance.