A federal judge just struck down the weighty $100,000 H-1B visa fee, dealing another blow to ongoing efforts to rewrite the regulations surrounding the program. In a decision on Monday, released by the U.S. District Court for the District of Massachusetts, a federal judge vacated the current fee that was to be enforced on employers who filed applications for new H-1B visas to bring highly skilled workers into the country to work for their business.
The court asserted that the changes to the H-1B visa fee were unlawful and exceeded the authority of the administration to make such changes to policy, reasserting that Congress alone held the power to impose such taxes and fees over immigration regulation. This marks another significant change to U.S. employment regulations that employers must be aware of for their talent recruitment processes.
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Is the $100,000 H-1B Visa Fee Going Away? Understanding the Ongoing Conflict Surrounding H-1B Regulations
Over the course of 2025-26, many new policies were announced under the new administration, following executive orders from the sitting president to change the landscape of employment in the U.S. Aside from alterations to DEI policy, taxation on tips and overtime, and other critical labor management changes, the H-1B visa system was also altered drastically. As part of the overhaul, this particular visa component, which is typically used by businesses to bring in labor from outside the country on the grounds of possessing specialized knowledge in their area of operations, was altered to discourage and limit its usage.
U.S. District Court Judge Leo Sorokin ruled in the case against the fee, deeming it an unlawful extension of the president’s power and a violation of the Administrative Procedure Act, which governs how regulations are developed and issued by federal agencies. “The substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called,” Sorokin stated.
“President Trump has clear legal authority to restrict entry of any class of aliens he determines is not in America’s best interests, and that is exactly what he did,” Taylor Rogers, a White House spokesperson, told HR Dive in an emailed statement Monday. “The Administration is confident this order will be reversed on appeal.”
Why Have There Been Rising Tensions Around the H-1B Visa Fee?
In September last year, the administration announced that employers who intended to apply for the H-1B visa would be required to pay a $100,000 fee while making their petitions. While the fee was not a new addition to the policy, it was set considerably higher than the typical $2,000 to $5,000 range. The change was meant to discourage employers from bringing in foreign workers at cheaper costs, urging them to turn to local talent instead. Over the years, there have been rising concerns over bigger businesses using the policy to unfairly bring in more workers to the U.S., all to fill vacancies with more affordable talent.
The fee was opposed by 20 states and other petitioners who stated that this made it harder to fill vacancies with the right talent. In the Boston case, the states appealed the $100,000 H-1B fee over concerns surrounding the hiring of school educators to staff public educational institutions. The U.S. Chamber of Commerce also filed a suit against this change in policy earlier this year, but a federal judge dismissed the allegations that the president had overstepped his authority. The parties have since appealed against the decision.
With the H-1B Fee Struck Down, What Does This Mean for Employers?
The Massachusetts H-1B ruling now means that while it is in effect, employers can submit their H-1B petitions without the inclusion of the fee. The fee payment systems will now work as per the pre-Proclamation cost structures. This change may not be permanent, as the administration will likely appeal the ruling and seek to reinstate the $100,000 H-1B fee, but the decision on this may take a while to come and ultimately land in the Supreme Court.
Other H-1B visa regulation changes will still be in effect. For instance, the H-1B approval process also came with changes to the lottery system, where applicants with higher wages would be favored. This means that employers who are keen to bring in talent should still lean towards offering them higher wages than they would otherwise, to ensure they secure their visa.
Employers who have already paid the hefty fee could be able to seek refunds, but there are no guidelines currently available on this procedure or the ability to do so. For now, it may be best to wait to see how the matter plays out and whether the fees come back into effect.
What are your thoughts on the changes to the H-1B visa fee? Share them with us in the comments. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.
