On June 8, 2026, a federal court for the District of Massachusetts ruled that a new $100,000 payment required for certain H-1B visa petitions is unlawful. The court's ruling effectively eliminates the fee.

Background

In September 2025, Presidential Proclamation (Proclamation 10973) created an extra $100,000 payment for many new H-1B petitions. The administration claimed authority to impose the fee under parts of the Immigration and Nationality Act (INA) that allow the President to restrict the entry of non-U.S. citizens in certain situations.

A group of states challenged the policy, arguing that the President went beyond what the law allows by creating a major new payment that only Congress has the power to impose.

The Decision

The lawsuit was brought by a coalition of states challenging both the proclamation and how federal agencies put it into practice.

A key argument advanced by the states was whether the $100,000 payment was simply a condition related to entering the United States, or whether it was really a tax. The court agreed that the fee functioned like a tax because it required employers to pay a large amount of money to file H-1B petitions, even though sponsoring H-1B workers is otherwise permitted under the law.

The court explained that the U.S. Constitution gives Congress—not the President—the power to impose taxes. The court also found that the INA does not clearly give the President the power to create a tax. While the INA provisions relied on by the administration give the President broad authority over entry rules, the court concluded they do not authorize the President to impose the $100,000 payment requirement. The court held that the requirement exceeded the authority Congress granted to the President under the INA.

What This Means

The decision is a great relief to employers and institutions that use the H-1B program to hire foreign professionals.  The H1B program is heavily used by universities, private and government research organizations, healthcare institutions, and private companies in many different economic sectors.

For now, the $100,000 payment requirement is gone. However, an appeal, further litigation or further action by the President or Congress could change the result. We will continue to monitor the situation for future developments.

Disclaimer

This post is for general information only and is not legal advice or a request to provide legal services. Neither receiving it nor reading it creates an attorney–client relationship. Do not act based on this information without getting advice from your immigration lawyer.