On June 8, 2026, the U.S. District Court for the District of Massachusetts issued a landmark ruling in California et al. v. Mullin et al., vacating the $100,000 H-1B petition fee imposed by the September 2025 Presidential Proclamation. 

Background: 

Twenty states in the United States had challenged the Proclamation, arguing it violated the Constitution and the Administrative Procedure Act. The Court agreed on all four counts. 

Key Findings: 

• The court has notified that the $100,000 is a TAX and not a visa restriction or regulatory fee. 

• The President has no authority to levy a tax under the H-1B statute (INA § 212(f)). This is vested exclusively with Congress. 

• Agencies bypassed notice-and-comment rulemaking required by the APA. 

• The finding declares the Policy as arbitrary and capricious — ignoring the impact on healthcare, education, and universities while offering no reasoned justification. 

Impact of this Decision: 

The $100,000 fee is VACATED. For now, the H-1B filing fees should revert to the pre-proclamation structure. Effectively, new petitions will not have to be accompanied by this $100,000 fee even if requesting a consular notification.  

Summary and Conclusion: 

While this relief is good for genuine employers, it must be noted that the government may appeal to the First Circuit and seek a stay on this. We will also have to wait and watch how the USCIS is processing applications received in the interim period. This judgement comes at a significant time because this will be a huge sign of relief for employers who are filing H-1B petition for a prospective employee, picked in the lottery for the first time.  

We will continue to provide updates on this important subject.