As the United States continues to see significant shifts in its immigration policy landscape, a federal court has now delivered a major ruling in favour of employers that rely on skilled international talent. A U.S. federal court has vacated the Trump administration's policy imposing a $100,000 fee on certain H-1B visa petitions, marking a significant development for employers that rely on skilled international talent.
Background to the Fee
In September 2025, a presidential proclamation introduced a substantial increase in the cost of certain H-1B petitions, imposing a $100,000 fee per petition. While several H-1B filing categories were exempt from the fee — including Change of Status, Extension of Status, and Change of Employer petitions — the fee remained applicable to H-1B Consular Notification cases involving individuals applying from outside the United States.
The policy represented a significant increase in the cost of sponsoring foreign nationals under the H-1B programme and raised concerns among employers regarding workforce planning and talent acquisition.
Court Decision
On 8 June 2026, Judge Leo Sorokin of the U.S. District Court for the District of Massachusetts vacated the policy in its entirety. The ruling, issued in State of California et al. v. Noem et al. (Case No. 1:25-cv-13829) found that the $100,000 fee constituted a tax rather than a permissible administrative charge, and concluded that Congress had not delegated authority to the executive branch to impose such a tax. As a result, the policy was ruled unlawful and has been set aside.
The ruling takes immediate effect and applies to all petitions impacted by the policy.
What This Means for Employers
This ruling removes a significant financial barrier for employers sponsoring overseas talent through the H-1B Consular Notification route. Businesses that deferred or restructured H-1B petitions in response to the fee should now reassess their workforce planning and talent acquisition strategies in light of this development.
Employers should note that the ruling is subject to potential appeal. The government is expected to challenge the decision, and if a stay is granted at appellate level, the fee requirement could be reinstated. Hudson McKenzie recommends monitoring developments closely and seeking specialist advice before making significant changes to H-1B sponsorship plans.
For advice on how this development may impact your H-1B sponsorship strategy or U.S. immigration planning, contact the Hudson McKenzie team to discuss your options.
How Hudson McKenzie Can Help
Hudson McKenzie advises employers and international organisations on U.S. immigration strategy, including H-1B sponsorship, workforce planning, and compliance. If you have questions about how this ruling affects your business, our team can provide tailored guidance.
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