A federal court has ruled that the federal government lacked authority to impose a $100,000 fee on certain new H-1B petitions and H-1B workers seeking visa issuance abroad. The decision is a major development for employers and foreign nationals who had been affected by the substantial fee requirement.
However, shortly after issuing its decision, the court partially paused the effect of its ruling while the government seeks further review. As a result, employers and H-1B workers should continue to monitor developments closely before making travel or filing decisions.
Background
The $100,000 fee was introduced through a presidential proclamation and later implemented through Department of Homeland Security guidance. The policy applied to certain new H-1B filings and created significant concern for employers and foreign nationals, especially in cases involving H-1B workers who needed to obtain visa stamps at U.S. consulates abroad before entering or returning to the United States.
For many employers, the fee created uncertainty around international travel, consular processing, and hiring strategies. For H-1B workers, it raised serious concerns about whether travel outside the United States could trigger a major financial obstacle to returning.
What Did the Court Decide?
On June 8, 2026, a U.S. district court vacated the DHS policy implementing the $100,000 H-1B fee. The court found that the government did not have legal authority to impose the fee and concluded that it functioned as an unauthorized supplemental tax.
The court ruled in favor of the plaintiffs, a group of 20 state attorneys general, and found that the proclamation and related policy were arbitrary and capricious, unconstitutional, and contrary to law.
In practical terms, the court’s decision struck down the fee requirement. Unless the ruling is stayed or later overturned, the government may not require payment of the $100,000 fee as a condition of certain H-1B filings or visa issuance.
Why Is the Ruling Temporarily Paused?
On June 12, 2026, the court partially stayed its June 8 decision. The court granted an administrative stay while the government prepares to seek a stay from the U.S. Court of Appeals for the First Circuit.
The stay gives the government a short window to ask the appellate court to pause the ruling while an appeal moves forward. The court required the government to file its motion by June 18, 2026.
Because of this temporary pause, employers and foreign nationals should not assume the matter is fully resolved. The final impact of the ruling may depend on whether the appellate court allows the decision to remain in effect during the appeal.
What This Means for Employers
For employers, the court’s decision could remove a major financial burden from the H-1B process. The fee had created uncertainty for companies with employees who needed visa stamping abroad, traveled internationally for work, or were preparing new H-1B filings.
The ruling may be especially important for employers with H-1B employees who:
However, because the court partially stayed its decision and the government is expected to seek appellate review, employers should proceed carefully. Any travel or filing strategy should be reviewed on a case-by-case basis.
What This Means for H-1B Workers
For H-1B workers, the court’s ruling may eliminate the risk of being required to pay $100,000 as a condition of visa issuance or return to the United States. This is particularly significant for individuals who need to apply for an H-1B visa stamp at a U.S. consulate abroad.
Still, the decision does not change other visa requirements. H-1B workers must continue to satisfy all eligibility requirements, complete consular processing where applicable, and comply with security screening and admissibility rules.
Because the ruling has been temporarily paused and may be appealed, H-1B workers should consult immigration counsel before departing the United States or making international travel plans.
What Questions Remain?
Several important questions remain unresolved. These include whether the appellate court will extend the stay, whether the government will ultimately succeed on appeal, how quickly DHS, USCIS, and the Department of State will update their guidance, and whether any refund process will be created for individuals or employers who may have already paid the fee.
Until additional guidance is issued, affected employers and H-1B workers should continue to monitor the case closely.
Key Takeaway
The court’s June 8 decision struck down the $100,000 H-1B fee, finding that the government lacked authority to impose it and that the fee functioned as an unlawful supplemental tax. This ruling could remove one of the most significant financial barriers recently affecting certain H-1B filings and consular visa processing.
However, the court partially stayed its decision on June 12, 2026, while the government seeks further review from the U.S. Court of Appeals for the First Circuit. For now, employers and H-1B workers should treat this as an important but still-developing legal issue and seek individualized guidance before making filing, staffing, or international travel decisions.
