A federal court ruling that struck down the Trump administration's controversial $100,000 H-1B surcharge has left global mobility teams in a difficult position — the fee is vacated, but a court-ordered stay means it may still be collected while the case works its way through appeal.
What Happened
On June 8, 2026, the U.S. District Court for the District of Massachusetts vacated Presidential Proclamation 10973 — the September 2025 executive order that imposed a $100,000 fee on H-1B visa petitions for beneficiaries undergoing consular processing abroad. The court found the fee was an unlawful tax that exceeded presidential authority and violated the Administrative Procedure Act, in the landmark case State of California v. Noem, brought by 20 Democratic-state attorneys general.
The administration moved quickly. On June 11, the Department of Justice filed an appeal to the First Circuit Court of Appeals. By June 12, a temporary administrative stay had been obtained — partially reinstating the fee's enforceability while the appeal proceeds. As of June 29, 2026, USCIS has not issued formal guidance on whether it will continue collecting the fee, creating genuine uncertainty for employers with pending or planned petitions.
Why This Matters for Global Mobility Teams
The $100,000 fee applies to H-1B petitions where the sponsored worker is located outside the United States and will obtain their visa through consular processing at a U.S. embassy abroad. This affects a significant portion of new hires — particularly in technology, finance, and healthcare — being sponsored from their home countries.
The ruling also creates a circuit split: the U.S. District Court for D.C. upheld the fee in a separate challenge by the U.S. Chamber of Commerce. This makes Supreme Court review highly likely, meaning this issue will remain unresolved for months to years.
What HR & Mobility Professionals Should Do Now
- Consult immigration counsel immediately before submitting any H-1B petition involving consular processing for an offshore beneficiary.
- Audit your pipeline of pending petitions to identify which filings involve offshore beneficiaries.
- Document all fee-related decisions in writing.
- Monitor USCIS.gov for policy updates, which could arrive with little notice.
"The fee is vacated on paper but enforceable in practice — every offshore H-1B filing now carries six-figure budget risk until the appeal resolves."
How xpath.global Can Help
At xpath.global, our work permit and visa advisory team tracks U.S. immigration policy changes in real time, helping multinational employers keep their global workforce moving without compliance exposure. Whether you are managing active H-1B petitions or planning international assignments, our specialists can guide your strategy.
Talk to our U.S. immigration specialists about your pending and planned H-1B petitions.
Explore immigration servicesSources: Ogletree Deakins (June 15, 2026); U.S. District Court, District of Massachusetts — State of California v. Noem.
