On June 8, 2026, the U.S. District Court for the District of Massachusetts issued a significant decision vacating the Presidential Proclamation that imposed a $100,000 fee on employers filing petitions for new H-1B visas. The ruling, issued by Judge Leo T. Sorokin, grants summary judgment in favor of the plaintiffs and invalidates the policy on legal grounds. If the decision stands on appeal, this dramatically reshapes H-1B filing costs and creates potential refund obligations.
What changed
A Presidential Proclamation introduced a new requirement on September 19, 2025, mandating that employers pay a $100,000 fee when petitioning for certain new H-1Bs. The court concluded that the executive branch exceeded its authority and violated the Administrative Procedure Act, which governs how federal agencies develop and issue regulations.
The Court found that the Policy imposes a tax on H-1B petitions without the requisite delegation by Congress. Sorokin determined that the fee functioned as a tax, which the President cannot issue without authorization from Congress. The judge relied on the distinction between regulatory fees (tied to adjudication costs), penalties (punishing unlawful conduct), and taxes (raising revenue or altering behavior)—concluding the $100K charge was a tax in disguise.
The ruling effectively restores the H-1B program to its pre-Proclamation cost structure, based on existing statutory filing fees. Prior to the change, companies typically paid between $2,000 and $5,000 to apply for an H-1B.
Why it matters
This ruling immediately resets the filing cost floor for new H-1B petitions nationwide (pending any emergency stay or appellate reversal). For practitioners and employers:
- Fee refunds are possible. If the ruling stands and the fee remains vacated, employers who already paid the fee may be able to seek refunds and should stand by for more information on how to do so. You should track guidance from USCIS on refund mechanics and deadlines.
- H-1B petition volume may increase. Plaintiffs argued that the new fee would have been prohibitive for many companies to hire new foreign workers. A drop back to $2K–$5K could unblock filings that were deferred or cancelled.
- Other legal challenges remain pending. The U.S. Chamber of Commerce also sued in federal court in Washington, D.C., and has appealed a denial of a summary judgment against the fee hike. That left the higher fee in effect, at least until September 2026, when it is scheduled to expire. Another lawsuit was filed in federal court in San Francisco, by religious groups and labor organizations, setting up the possibility of divided rulings in three appellate court circuits. An appellate reversal in another circuit could re-impose the fee or create circuit split uncertainty.
- Broader H-1B policy changes remain in effect. In December, the Administration announced that it was abandoning the long-standing lottery system used to grant the petitions in favor of a weighted system that would favor higher-skilled and better-paid workers. This ruling affects only the $100K fee, not other H-1B program overhauls.
Way forward
- Immediately review any H-1B fee payments made since September 2025. Document the amount, date, and case reference. Prepare a refund claim package and watch the Clark Hill and USCIS websites for instructions on how and when to submit it.
- Revise your H-1B filing timeline and budget. With fees reverting to ~$2K–$5K per petition, consider whether you have pending or deferred cases that are now economically feasible to refile or file afresh.
- Confirm USCIS fee schedules. Check the USCIS Fee Schedule to verify current H-1B adjudication fees and any emergency guidance USCIS issues in response to the ruling.
- Monitor appellate developments. The case will likely reach the First Circuit Court of Appeals. Bookmark the docket and subscribe to immigration law alerts, as a reversal or Circuit split could restore the fee or create interim uncertainty.
Disclaimer
This article is for informational purposes only and does not constitute legal advice. Fola is not a law firm and cannot represent you in legal proceedings or advise you on the application of this ruling to your specific circumstances. Always consult a licensed immigration attorney before making filing decisions or refund claims. Immigration policy and court decisions can change without notice, and this article reflects the state of the law as of June 9, 2026. Verify all key facts against the original Clark Hill article and the underlying court decision.