On July 24, 2026, the U.S. Court of Appeals for the First Circuit denied the Trump Administration’s request to block a district court ruling voiding the USCIS policy imposing a $100,000 fee on H-1B petitions.  The appeals court found that the Trump Administration was not likely to succeed in its argument that the district court ruling voiding the fee should be overturned.  The effect of the circuit court decision is to lift the temporary stay of the district court’s decision and invalidate the $100,000 fee.  USCIS is expected to issue updated guidance in the days ahead.

The Trump administration is expected to continue its appeal of the district court decision invaliding the fee.   Employers should consult with legal counsel for specific legal advice before filing H-1B petitions.

The fee was imposed pursuant to presidential proclamation on September 19, 2025.  On June 8, 2026, a federal district court in Massachusetts voided in its entirety the USCIS policy imposing a $100,000 fee on H-1B petitions. The district court ruled that the $100,000 fee amounted to a tax.  As such, imposition of the fee was found to usurp the power of Congress to levy taxes, exceeding the president’s authority. The district court rejected the government’s claim that the fee was merely a regulatory payment.  Moreover, the district court found that the policy exceeded statutory authority, was arbitrary and capricious, and that it violated the Administrative Procedures Act.  The case is State of California et al. v Markwayne Mullin, et al., Case No., 1:25-cv-13829 (D. Mass., filed Dec. 12, 2025).

Notably, the district court’s decision conflicts with an earlier federal court ruling from the District of Columbia. In Chamber of Commerce, et al., v. U.S. Department of Homeland Security, et al., Case No. 25-cv-3675-BAH (D.D.C., filed Dec. 23, 2025), the court found that imposition of the fee was permissible under the president’s broad authority to regulate entry in the United States.

We will monitor the progress of these cases and provide updates as they become available.