A federal court in Massachusetts has invalidated the Administration's $100,000 H-1B fee, finding that the Executive Branch lacked authority to impose the charge. However, employers should not assume that the fee has been permanently eliminated. The federal government has already appealed the decision and obtained a temporary administrative stay while it seeks relief from the U.S. Court of Appeals for the First Circuit.
As a result, the immediate enforceability of the fee remains uncertain. The litigation is particularly important for health care systems, universities, nonprofit research institutions and other cap-exempt employers that regularly recruit foreign talent from abroad and may be disproportionately affected by the fee.
Key Takeaways
- A federal court invalidated the Administration's $100,000 H-1B fee on June 8, 2026.
- The government has appealed the decision.
- A temporary administrative stay is currently in effect while the government seeks relief from the First Circuit.
- Employers should not assume that the fee has been permanently eliminated.
- The First Circuit's forthcoming decision on the government's anticipated stay request may determine whether the fee remains enforceable during the appeal.
What Happened?
On June 8, 2026, the U.S. District Court for the District of Massachusetts vacated the Administration's $100,000 H-1B fee, concluding that the Executive Branch lacked authority to impose the charge and that the policy violated the Administrative Procedure Act.
The court found that the government could not create a fee of this magnitude through presidential proclamation and agency implementation without clear congressional authorization. As a result, the court invalidated the fee requirement in its entirety.
The federal government subsequently filed a notice of appeal and sought a stay of the district court's ruling. On June 12, 2026, the court denied the government's request for a stay pending appeal but granted a temporary administrative stay. Under the court's order, the administrative stay remains in effect while the government seeks emergency relief from the U.S. Court of Appeals for the First Circuit, provided that the government files its stay motion no later than June 18, 2026.
As a result, the legal status of the $100,000 fee remains unsettled. While the district court concluded that the fee is unlawful, the administrative stay temporarily pauses the practical effect of that ruling while appellate proceedings move forward.
Background
In September 2025, the Administration announced a new $100,000 fee for certain H-1B petitions as part of broader efforts to restrict and reshape the H-1B program. Unlike traditional USCIS filing fees, which are established through statutory and regulatory processes, the fee was implemented through executive action.
The fee did not apply to all H-1B petitions. Instead, it generally affected certain new H-1B petitions filed on behalf of foreign nationals who were physically outside the United States or otherwise unable to obtain H-1B status through a change of status application filed from within the United States.
As a result, the fee had an uneven impact across industries. Health care systems, universities, nonprofit research organizations and other cap-exempt employers were particularly affected because they frequently recruit physicians, researchers, professors and other professionals directly from abroad. Many of these employers are exempt from the annual H-1B cap and can sponsor H-1B workers throughout the year, making international recruitment a critical component of their workforce strategies.
Although the fee generated concern across many industries, the court's decision may ultimately have its most immediate impact on cap-exempt employers. Many private-sector employers subject to the annual H-1B cap made hiring and sponsorship decisions earlier this year when evaluating whether to register foreign candidates for the FY 2027 H-1B lottery. Because the registration process concluded in March 2026, some decisions influenced by the fee may no longer be revisited.
By contrast, health care organizations, universities, nonprofit research institutions and other cap-exempt employers continue to recruit and sponsor H-1B workers year-round. If the district court's ruling ultimately remains in effect, these employers may realize more immediate benefits from the elimination of the fee.
What This Means for Employers
The district court's ruling represents a potentially significant development for employers that rely on international talent. If ultimately upheld, the decision would remove a substantial financial barrier that has complicated international recruitment efforts for many organizations. However, employers should proceed cautiously.
Because the government has appealed and a temporary administrative stay is currently in effect, employers should not make hiring, recruitment or filing decisions based on the assumption that the fee has been permanently eliminated. The First Circuit's forthcoming decision regarding the government's stay request may determine whether the fee remains enforceable while the appeal proceeds.
What Happens Next?
The next significant development will likely be the First Circuit's consideration of the government’s anticipated motion for a stay pending appeal.Because the district court has already entered a temporary administrative stay and directed the government to seek appellate relief by June 18, 2026, the stay issue is expected to move on an expedited timeline. A decision from the First Circuit regarding a stay could occur within days or weeks, while the underlying appeal itself may take substantially longer to resolve.
The outcome of the stay proceedings may have immediate consequences for employers:
- If the First Circuit grants a stay pending appeal, the government will likely continue enforcing the $100,000 fee while the appeal proceeds.
- If the First Circuit denies a stay pending appeal, the district court's order vacating the fee would likely remain operative during the appeal, potentially allowing affected employers to proceed without paying the fee while the litigation continues.
- Regardless of the stay decision, the merits appeal will continue unless the parties otherwise resolve the case.
Employers should expect additional developments in the coming weeks as the First Circuit considers the government's request for a stay pending appeal. The outcome of that proceeding may provide the first meaningful indication of whether the $100,000 fee is likely to remain in effect while the litigation continues.
Warner Norcross + Judd will continue to monitor developments and provide updates as additional guidance becomes available.
