Overview
- The U.S. District Court for the District of Massachusetts vacated the $100,000 payment requirement Monday after finding the presidential proclamation operated like a tax that the President lacked authority to impose.
- The court also ruled that the implementing agencies violated the Administrative Procedure Act by skipping required notice-and-comment rulemaking and failing to assess employer reliance and sector harms.
- The Justice Department filed a notice of appeal on June 11 and has signaled it may seek a stay that could briefly reinstate the fee while higher courts weigh the legal issues.
- Employers, universities and hospitals have immediate relief from the supplemental charge but face open questions about refunds for fees already paid and whether to resume or pause new H‑1B filings.
- A split of lower-court decisions and separate pending suits mean the First Circuit, the D.C. Circuit or Congress could provide the final answer on the fee and on related H‑1B reforms that change lottery weighting and proposed wage floors.