Federal judge strikes down $100,000 H-1B fee; Trump administration appeals, deepening legal uncertainty for employers
On June 8, 2026, U.S. District Court Judge Leo Sorokin (Boston) struck down Trump's $100,000 supplemental fee on new H-1B visa petitions, ruling it an unconstitutional tax exceeding executive authority. The Justice Department appealed to the First Circuit, while a separate challenge by the U.S. Chamber of Commerce yielded a different December 2025 ruling from Judge Beryl Howell upholding the fee — creating a district-level split that now risks a circuit split if the D.C. Circuit sides with the administration.
The $100,000 H-1B fee case is a direct test of executive power over immigration fees. On September 19, 2025, President Trump signed a presidential proclamation imposing the fee on top of standard H-1B application costs. Within months, the fee generated $8.5 million from 85 payments before being halted by Judge Sorokin's nationwide vacatur on June 8, 2026. The government's legal theory — that the president can unilaterally set immigration fees as an 'inherent' executive power — challenges the separation of powers and the appropriations clause. If the government prevails, it could bypass Congress on immigration revenue across all visa categories, a blueprint consistent with Project 2025's vision of unilateral executive immigration controls.
At stake is not just an H-1B hiring fee but the principle of whether the executive can tax immigrants without legislative authorization. The First Circuit appeal heightens the risk of a formal circuit split if the D.C. Circuit eventually sides with the administration. Meanwhile, U.S. colleges and tech employers reliant on H-1B hiring remain in legal limbo: the nationwide vacatur has opened a hiring window, but employers cannot plan for the next fiscal year with a D.C. Circuit decision still pending and a fresh First Circuit appeal under way. A legislative fix — setting the fee through Congress — would resolve the uncertainty, but the administration has chosen litigation over legislation, signaling a deliberate strategy to expand executive power.
The humanitarian alternative
Congress should exercise its constitutional appropriations power to set H-1B fees directly, replacing the vacated $100,000 fee with a modest, cost-based fee structure that funds STEM education and worker retraining programs. A bipartisan bill could peg fees to actual adjudication costs (currently ~$4,500 per petition) and dedicate any surplus to domestic workforce development, not deficit reduction or unrelated programs. This approach would restore legislative accountability, eliminate legal uncertainty for employers and universities, and prevent future unilateral executive fee hikes. The alternative also avoids a protracted court battle that could take years—time during which the program remains in political flux.
Falsifiable predictions
What this entry claims will happen, and what data would prove it wrong. The Reckoner revisits these against current reality.
- The First Circuit will rule on the H-1B fee appeal within 9–12 months, as expedited review is unlikely without an injunction pending appeal.
- If the DOJ loses at the First Circuit, it will seek Supreme Court certiorari, as the administration views the fee as a test case for executive immigration authority.
- While the appeal is pending, the administration will not attempt to reimpose the fee through a different executive mechanism (e.g., a DHS rulemaking), given the judge's clear APA violation finding.
Grounded in
- Trump administration appeals ruling blocking $100000 H-1B fee
- US District Court Rules $100000 H-1B Fee is Unlawful
- Trump's $100,000 H-1B visa fee is unlawful, US judge rules | Reuters
- Trump administration appeals ruling against $100K H-1B visa fee
- Judge Strikes Down Trump Administration's $100,000 H-1B Visa Fee
Original source — excerpted
news Trump administration appeals ruling blocking $100,000 H-1B fee"President Donald Trump takes a question from a reporter before signing executive orders in the Oval Office at the White House on September 19, 2025 in Washingto..."