A federal district court in Massachusetts has vacated the $100,000 fee that President Donald Trump imposed on certain H-1B visa petitions, ruling it constitutes an unlawful tax.
The decision, handed down on June 8, 2026, came in the case of State of California et al. v. Noem et al., case number 1:25-cv-13829.
The court found that the fee, introduced through President Trump’s September 19, 2025, Presidential Proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers,” exceeded presidential authority.
In its ruling, the court referenced a recent Supreme Court decision striking down presidential tariffs, affirming that the president cannot impose taxes without explicit congressional approval.
The $100,000 fee had applied to new H-1B petitions for foreign workers located outside the United States and was set to expire after one year if not extended by the administration.
The court declared the proclamation implementing the fee unlawful and vacated it in its entirety, with the decision taking effect immediately upon delivery of the ruling.
The court also issued declaratory relief in favour of the plaintiffs but declined to enter a permanent injunction, concluding that such a measure was not necessary given the circumstances.
The ruling could allow affected beneficiaries of approved H-1B petitions to obtain visas and travel to the United States without having to pay the substantial fee previously required.
For employers, the practical impact of the ruling will depend largely on the outcome of any appellate review and how the US Citizenship and Immigration Services responds to the decision.
Employers and foreign nationals who postponed H-1B sponsorship or related immigration plans as a direct result of the fee may now have fresh options available to them in light of the court’s ruling.
The government is expected to consider appellate options, and employers have been advised to continue monitoring developments closely as the legal situation evolves.