Court Halts the Trump Administration's $100,000 H-1B Fee

If you or your employer is pursuing an H-1B petition, this development is worth noting.

On June 8, 2026 (U.S. time), a federal court vacated the $100,000 H-1B payment policy the Trump administration issued in September of last year. The threshold that had deterred countless applicants has been removed by judicial order.

Pictured: the court's order (State of California et al. v. Mullin et al., Civil No. 25-13829-LTS, June 8, 2026).

$100,000 — a Tax or a Penalty?

The administration characterized the charge as a punitive measure, on the rationale that the H-1B program is subject to abuse and harms American workers. The court did not accept that characterization: applying for an H-1B is entirely lawful conduct, and imposing a substantial charge on lawful conduct is in substance the levying of a tax. Under the Constitution, the taxing power belongs to Congress; the executive may not create one on its own. The government's characterization does not hold up as a legal matter.

Beyond the constitutional problem, the court also held the policy violated the Administrative Procedure Act. The agencies adopted it without the required notice and comment, without adequately explaining their reasoning, without assessing alternatives or likely effects, and without any emergency justification for bypassing those procedures. As the court put it, merely acting at the President's direction does not give an agency license to disregard the APA's requirements.

The court also looked to the Supreme Court's February 2026 decision on the administration's reciprocal tariffs, where the Court likewise rejected the policy on the ground that a tariff is in substance a tax in the constitutional sense. The reasoning in the two cases runs along the same line.

What Applicants Can Do Now

Fees return to their prior levels, generally in the range of $2,000 to $5,000, rather than a prohibitive $100,000. Employers who suspended H-1B plans because of the charge can reassess their timelines.

Note, however, that the administration has stated it will appeal, and the direction of the policy remains uncertain. Applicants and employers should stay in close communication and prepare for the possibility of further changes until the appeal is resolved.

Our Recommendation

H-1B policy is in a period of rapid change, and each judicial decision can affect both the timing and the strategy of a petition. If you are planning an H-1B filing, or have questions about how to proceed after this decision, we are glad to help.

This article addresses general legal questions only and does not constitute legal advice on any specific matter.