A federal district court has vacated the $100,000 H-1B proclamation fee policy in its entirety, ruling the fee unlawful as an improper use of executive power and unlawful under the Administrative Procedure Act. The Trump administration plans to appeal the ruling. Until a further court order issues or the appeal is resolved, USCIS should not require the fee for any new H-1B petition.
What changed
The U.S. District Court for the District of Massachusetts on June 8 vacated the $100,000 fee for new H-1B visas established by a proclamation in September 2025. Judge Leo T. Sorkin declared the fees unlawful and said in his decision that it “exceeds the fee-setting authority delegated by Congress.”
The judge found that the policy violated the Administrative Procedure Act because it was issued without giving the public an opportunity to comment before it took effect. The judge said the policy “imposes a tax on H-1B petitions without the requisite delegation by Congress.”
Unless and until a further court order is issued, USCIS should not require the $100,000 fee for the approval of any H-1B petition.
Why it matters
The vacatur eliminates a $100,000 surcharge that had applied to all new H-1B petitions on top of standard filing fees. 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 removes a substantial cost barrier that affected hiring in multiple sectors. Technology companies, school systems and rural hospitals had said the fee pushed recruiting costs far beyond standard levels.
One unresolved question: More than 200,000 applicants who paid under the fee 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. Monitor DHS and USCIS newsrooms for any retroactive refund guidance.
Way forward
-
Check USCIS guidance immediately. Do not assume USCIS will automatically stop collecting the fee without a formal policy alert. Review the USCIS newsroom and any myUSCIS notice to confirm whether the fee has been suspended.
-
For pending H-1B cases: If you have H-1B petitions awaiting approval, contact USCIS to clarify whether the $100,000 fee remains due. You may have grounds to request a fee reduction or refund if payment was already made.
-
Prepare for appeal. The Trump administration plans to appeal the ruling. The court’s vacatur order is not final until any appeal is exhausted. Plan client communications and filing timelines with this uncertainty in mind.
-
Monitor for refund procedures. Watch for a DHS or USCIS notice establishing the process and timeline for retroactive refunds to the 200,000+ filers who already paid the $100,000 fee.
Disclaimer
This article is for informational purposes only and does not constitute legal advice. The information is based on publicly available court filings and agency materials and reflects only the state of policy as of the publication date. Immigration law and policy are subject to frequent change, including through ongoing litigation, administrative action, and legislative activity. You should verify all information against primary sources—including the court decision, any USCIS policy alert, and current agency guidance—and consult a licensed immigration attorney to determine how these developments affect your specific circumstances. Courts may modify, stay, or overturn this ruling on appeal, and agency implementation may differ from what is described here.