Federal Court Blocks Trump's $100K H-1B Fee: 2026 Immigration Policy Update

On June 8, 2026, a federal judge in Massachusetts struck down the $100,000 fee that had been imposed on new H-1B visa petitions via a White House proclamation issued on September 19, 2025. The court sided with a coalition of 20 states that challenged the fee, determining it constituted an illegal tax that only Congress has the authority to levy under the U.S. Constitution. The court also found the administration violated the Administrative Procedure Act (APA) by implementing the fee without going through the required notice-and-comment rulemaking process, deeming the action arbitrary and capricious. This dual legal basis — both constitutional overreach and procedural violation — strengthens the plaintiffs' position in any subsequent appeal. The Trump administration has signaled it will appeal the ruling and seek a stay, which would temporarily reinstate the $100,000 fee while the legal battle continues. A stay would create continued uncertainty for U.S. employers currently deciding whether to pay the fee, hold off on new petitions, or seek reimbursement for fees already paid. For EB-3 applicants and their sponsoring employers, this ruling is relevant as part of the broader employment-based immigration legal landscape. Employers sponsoring foreign workers under any visa category should monitor this case closely, as its outcome may signal the administration's broader use of executive authority over immigration fees and policy. Legal experts advise employers to proceed cautiously given the rapidly shifting regulatory environment. Whether new H-1B petitions can be filed without the fee in the interim — before a stay is issued — remains an open question. Further updates are expected as the case moves through appeals.