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Federal Court Invalidates $100,000 H-1B Payment Requirement
On June 8, 2026, the U.S. District Court for the District of Massachusetts ruled that the $100,000 payment requirement imposed by Presidential Proclamation 10973 on certain H-1B petitions is unlawful and eliminated the fee.
Background
In September 2025, Presidential Proclamation 10973 established an additional $100,000 payment requirement for many new H-1B petitions. The administration relied on Sections 212(f) and 215(a) of the Immigration and Nationality Act (INA), provisions that authorize the President to impose restrictions on the entry of noncitizens when deemed appropriate. The plaintiffs argued that the payment requirement exceeded the authority granted by those provisions and improperly imposed a financial obligation that only Congress may authorize.
The Court’s Decision
The case was brought by a coalition of states challenging the legality of the proclamation and the federal agencies’ implementation of the policy.
A central issue was whether the $100,000 obligation should be treated as a restriction on entry or as a tax. The court concluded that the payment functioned as a tax because it imposed a substantial monetary obligation on employers seeking to file H-1B petitions while leaving the underlying activity, sponsorship of H-1B workers, lawful.
The court noted that the Constitution assigns the power to levy taxes to Congress and found that the Immigration and Nationality Act (“INA”) does not clearly delegate that authority to the President. Although Sections 212(f) and 215(a) of the INA provide broad authority to regulate the entry of noncitizens, the court determined that those provisions do not authorize the Executive Branch (i.e., the President) to impose taxes. Based on that analysis, the court concluded that the payment requirement exceeded the authority delegated by Congress.
Potential Impact
The decision affects employers and institutions that rely on the H-1B program to hire foreign professionals, including universities, healthcare providers, research institutions, and private employers.
The $100,000 payment requirement is currently eliminated, but an appeal or further litigation could change that outcome.
Brown Immigration will continue to monitor the case and provide updates as new information becomes available.
At Brown Immigration Law, we are committed to keeping you informed of the latest developments and providing expert legal guidance during this uncertain time. If you or a loved one is impacted by these changes, our experienced attorneys are here to help you navigate your options and protect your rights. Stay connected with us for timely updates, and don’t hesitate to reach out for personalized assistance.
