Quick Hits
- On June 8, 2026, a Massachusetts federal district court vacated the Trump administration’s $100,000 H-1B fee requirement.
- On June 11, 2026, the administration filed an appeal of the district court’s decision and on June 12, 2026, asked the district court to stay its decision.
- With multiple pending challenges in different circuits, the Supreme Court will likely weigh in.
Background
On September 19, 2025, President Donald Trump issued Proclamation 10973 which imposed a $100,000 fee for new H-1B petitions filed for beneficiaries located outside of the United States. The administration stated that the fee was intended to address perceived abuse of the H-1B program, and protect U.S. workers, specifically focusing on science, technology, engineering, and mathematics (STEM) occupations. The fee became effective September 21, 2025, and applied to new H-1B petitions for beneficiaries subject to consular processing.
The fee was subsequently challenged in multiple federal courts.
Analysis and Impact
In State of California v. Noem, twenty Democratic state attorneys general challenged the fee proclamation, arguing that the proclamation exceeded the president’s statutory authority and that the agency guidance implementing the fee violated the Administrative Procedure Act (APA). On June 8, 2026, the U.S. District Court for the District of Massachusetts granted summary judgment in favor of the states on all claims (constitutional tax authority, APA violation, and statutory authority) and vacated the policy implementing the fee in its entirety.
The U.S. District Court for the District of Massachusetts found that the $100,000 fee proclamation was not an immigration restriction, but rather a tax, which the president lacked authority to impose. Additionally, the court determined that the fee proclamation violated the APA as the agency’s implementation of the fee failed to follow statutory procedures.
On June 11, 2026, the Trump administration filed a notice of appeal to the First Circuit Court of Appeals. Then, on June 12, 2026, the administration sought a stay of the district court’s order pending appeal which the court granted.
Notably, the U.S. District Court for the District of Massachusetts’s holding starkly contradicts a conclusion reached in the U.S. District Court for the District of Columbia, which upheld the fee proclamation in a lawsuit brought by the U.S. Chamber of Commerce and the Association of American Universities. The decision in that case is currently on appeal before the United States Court of Appeals for the D.C. Circuit, which held oral argument in March 2026. Meanwhile, a lawsuit challenging the fees was also brought by healthcare organizations, labor unions, and educational institutions remains pending in the U.S. District Court for the District of California. The government’s appeal of the U.S. District Court for the District of Massachusetts’s decision adds to a potential circuit split which could end up in the Supreme Court of the United States.
Key Takeaways
- The precise scope of the stay issued by the U.S. District Court for the District of Massachusetts is unclear and U.S. Citizenship and Immigration Services (USCIS) has not issued guidance about whether it intends to continue collecting the fee.
- As remaining lawsuits challenging the proclamation continue, the rules surrounding the fee proclamation are subject to change.
- The ultimate outcome of the rule will likely be decided in the U.S. Supreme Court.
Ogletree Deakins’ Immigration Practice Group will continue to monitor developments and will post updates on the Immigration blog as additional information becomes available.
To learn more about this development and other critical immigration issues facing employers today, please join our Virtual Immigration Insights Symposium on Wednesday, October 7, 2026, from noon to 2:30 p.m. ET. Register here.
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