Court Temporarily Stays Decision Vacating H-1B $100,000 Fee; Fee Remains in Effect

By: Gladys Gervacio | June 16, 2026

Overview

In a significant development regarding the controversial $100,000 H-1B supplemental fee, the United States District Court for the District of Massachusetts has temporarily stayed the effect of its earlier ruling that vacated the fee requirement. As a result, the $100,000 fee remains in effect while appellate proceedings move forward.

Background

On June 8, 2026, the District Court in State of California et al. v. Noem et al. ruled that the federal government's implementation of the $100,000 H-1B fee was unlawful. The court found that the fee constituted an unauthorized tax that exceeded executive authority, infringed upon Congress's taxing power, and violated the Administrative Procedure Act (APA).

The court vacated the policies and agency guidance that implemented the fee, which, if allowed to take effect, would have prohibited U.S. Citizenship and Immigration Services (USCIS) and the Department of State from collecting the fee nationwide.

Following the decision, the federal government promptly filed a notice of appeal with the U.S. Court of Appeals for the First Circuit and sought emergency relief to prevent disruption while the appeal is pending.

Administrative Stay Granted

On June 12, 2026, the District Court denied the government's request for a stay based on the merits of the case but granted an administrative stay pending further review by the First Circuit Court of Appeals.

The administrative stay temporarily suspends the effect of the June 8 ruling and allows the government to continue collecting the $100,000 H-1B fee while the appellate court considers the government's motion for a stay pending appeal.

As a result, the $100,000 H-1B supplemental fee currently remains in effect and must continue to be paid where required.

The First Circuit is expected to determine whether a longer-term stay should remain in place during the appeal process.

Practical Implications for Employers

Employers sponsoring H-1B workers should be aware of the following:

• The $100,000 H-1B supplemental fee remains enforceable at this time.
• USCIS and the Department of State may continue collecting the fee while the administrative stay is in effect.
• The legal status of the fee remains uncertain and could change quickly depending on future rulings by the First Circuit Court of Appeals.
• Employers with pending or planned H-1B filings should closely monitor developments and consult immigration counsel regarding case-specific filing strategies.

What Employers Should Do Now

Until further guidance is issued:

1. Continue to assume that the $100,000 H-1B fee applies to covered cases.
2. Coordinate filing timelines and budgets accordingly.
3. Monitor court developments closely, as the status of the fee may change on short notice.
4. Consult with immigration counsel regarding any pending, planned, or time-sensitive H-1B filings.

Chugh, LLP Will Continue to Monitor Developments

Chugh, LLP is actively monitoring the litigation and government guidance related to the $100,000 H-1B fee. We will provide updates as significant developments occur.

For questions regarding the impact of this litigation on your workforce or upcoming H-1B filings, please contact your trusted Chugh immigration professional.

This alert is provided for informational purposes only and does not constitute legal advice.