A US Court Just Struck Down Trump's $100,000 H-1B Visa Fee. Here's What It Means.

A federal judge in Massachusetts has ruled that the Trump administration's $100,000 fee on H-1B visa petitions is unlawful, delivering a significant victory for employers, universities, and healthcare providers who had spent months arguing the policy was unconstitutional.

The ruling, issued on June 8, 2026 by Judge Leo T. Sorokin of the U.S. District Court for the District of Massachusetts, grants summary judgment in favour of the plaintiff states and vacates the Presidential Proclamation that introduced the fee.

What the Fee Was and Where It Came From

The H-1B visa is the primary route through which US employers hire skilled foreign workers, engineers, software developers, medical professionals, academics, and others in specialised fields. Employers who sponsor H-1B workers have historically paid between $2,000 and $5,000 in fees, depending on the size of the company and other factors.

On September 19, 2025, a Presidential Proclamation introduced a new requirement mandating that employers pay a $100,000 fee when petitioning for certain new H-1 B visas. The jump was immediate and substantial, roughly a 20- to 50-fold increase overnight, depending on the employer. The US Chamber of Commerce argued the fee would force businesses to choose between dramatically increasing their labour costs or hiring fewer highly-skilled foreign workers.

Why the Court Struck It Down

The court concluded that the administration's implementation of the fee exceeded executive authority and violated governing legal principles, including the Administrative Procedure Act and constitutional separation of powers. The decision emphasised that Congress, not the Executive Branch, holds the authority to impose taxes or fees of this magnitude in the immigration context.

In plain terms, the court ruled that the President does not have the power to unilaterally create what amounts to a tax on employers using a visa programme that Congress established and governs. The fee was too large, too consequential, and was introduced without the legislative and procedural process the law requires.

What Happens Now for Employers

While the ruling is in effect, employers have the option to submit H-1B petitions that would have been subject to the fee without including it. The ruling effectively restores the H-1B programme to its pre-Proclamation cost structure, based on existing statutory filing fees.

Employers who already paid the $100,000 fee may be able to seek refunds if the ruling stands, though further guidance on the refund process is expected.

The decision is not necessarily the final word. The US Chamber of Commerce had also sued in federal court in Washington, D.C., and appealed a denial of a summary judgment against the fee, leaving the higher fee in effect in that circuit, at least until September 2026, when it is scheduled to expire. A third lawsuit was filed in federal court in San Francisco by religious groups and labour organisations, setting up the possibility of divided rulings across three appellate court circuits.

The Massachusetts ruling could be appealed to the First Circuit Court of Appeals, and potentially beyond.

Why This is Important to Foreign Founders

For international entrepreneurs building US operations, this ruling matters in two ways.

The immediate practical one: employers sponsoring skilled foreign staff through H-1B can, for now, proceed without the $100,000 fee hanging over each petition. For startups and small businesses, which the Chamber specifically flagged as most exposed to the fee, that's meaningful relief.

The broader one: this case is part of a larger pattern of legal challenges pushing back on executive action around immigration fees and restrictions. The outcome across three circuit courts, and potentially the Supreme Court, will shape how much latitude future administrations have to reshape immigration costs without going through Congress.

For now, the $100,000 fee is vacated. But the legal fight is far from over.

Sources: PBS NewsHour, Clark Hill Immigration Law, Reuters, OpenVisa

Emooves covers visa routes, business registration, and compliance for foreign founders across 10 countries. Read our full guide to starting a business in the USA.