Full Breakdown
Judge Vacates $100,000 H-1B Fee as Trump Administration Appeals
6/13/2026, 9:56:59 PM
Court Decision and Partial Stay
On June 8, 2026, U.S. District Judge Leo Sorokin in Boston ruled the $100,000 H-1B fee “is a tax” lacking congressional approval and vacated it. He granted a partial stay on June 12, preserving the order while the Justice Department seeks a stay from the First Circuit.
Legislative Background and Fee Structure
The H-1B program, created in 1990, lets U.S. employers hire foreign specialists for up to six years. Fees have ranged $2,000-$5,000. In September 2025 President Donald Trump issued a proclamation imposing a $100,000 annual fee on each new petition, claiming it would curb abuse and protect American jobs.
Plaintiffs, Defendants, and Stakeholders
A coalition of 20 Democratic-led states, led by California, sued the administration; Minnesota Attorney General Keith Ellison joined. The Justice Department defends the fee. Walmart warned it would pause H-1B hiring if the fee stayed. The case is *State of California v. Mullin* (D. Mass., No. 1:25-cv-13829).
Official Statements
The Justice Department said it is “committed to protecting American workers and supports President Trump’s America First agenda.” Keith Ellison said the ruling ensures the federal government “cannot impose fees that conflict with laws passed by Congress.” The administration calls the fee a lawful exercise of foreign-commerce and immigration authority; the court stressed the constitutional separation of tax powers.
Opposition to the Fee
Supporters, the White House, argue the H-1B program is overused to replace U.S. workers with foreign labor. Republican Senator Lisa Murkowski warned rural schools rely on H-1B teachers; Congressman Mike Lawler warned healthcare providers face staffing shortages. President Trump said judges were “hurting our country very badly.”
Verbatim Quotes
- “The Policy implementing the Proclamation is declared unlawful and is vacated in its entirety.” — Judge Leo Sorokin
- “Indeed, every day the district court’s order remains in effect, additional aliens will rush to seek classification and entry as an H-1B nonimmigrant worker,” — Department of Justice filing
- “Ellison says the ruling ensures the federal government cannot impose fees that conflict with laws passed by Congress.” — Keith Ellison, Attorney General of Minnesota
- “hurting our country very badly” — President Donald Trump
Conflicting Interpretations
The administration says the fee is a lawful exercise of foreign-commerce and immigration authority; the district court calls it an unauthorized tax. Parallel suits in the Northern District of California and the D.C. Circuit remain pending, leaving executive authority unclear.
Outlook
The Justice Department’s appeal to the First Circuit is pending; a stay could reinstate the fee while appellate review proceeds. Analysts note the case could reach the U.S. Supreme Court. Advocates warn the administration may pursue alternative limits—tighter documentation or heightened scrutiny—that avoid the tax label while still curbing H-1B use.
