Yesterday, a federal district judge in Massachusetts invalidated the U.S. Citizenship and Immigration Services (USCIS) $100,000 H-1B fee in a case brought by the State of California, finding it to be an unlawful tax, rather than a permissible fee, and a violation of the Administrative Procedures Act. The court emphasized that the Immigration and Nationality Act (INA) does not grant the President the power to impose taxes, as Congress alone holds the power to tax under the Constitution.
USCIS is expected to appeal the decision and request a stay. Previously, a federal district judge in the District of Columbia ruled that the President has broad enough power under INA Section 212(f) to impose the fee, and the plaintiff's appeal (brought by the U.S. Chamber of Commerce) is currently pending before the D.C. Circuit.
The original $100,000 H-1B fee was announced by the administration on September 19, 2025, then clarified by USCIS on October 21, 2025, to apply only to certain H-1B petitions. As discussed in detail here, USCIS clarified that the fee does not apply to H-1B change of status petitions, extensions of status, or change of employer requests for individuals already in the U.S.
Under this new federal district court decision, USCIS is now technically prevented from collecting the fee nationwide. However, this could change quickly, and an employer that files an H-1B petition for a worker not extending or changing status within the U.S. without paying the $100,000 fee risks a later rejection or denial if USCIS obtains a stay and/or prevails on appeal.
Additionally, the $100,000 fee, in its current form, is set to expire on September 20, 2026, but could be extended by the administration if it is successful on appeal.
Our Immigration Team is prepared and well-equipped to guide, assist, and represent employers through this process. If you have any questions or would like more information, please contact a member of Baker Donelson's Immigration Team.