Synopsis
A US federal judge struck down the $100,000 fee for fresh H-1B petitions, deeming it an unlawful tax. This ruling could encourage more applications and enhance on-site mobility for Indian talent, though its temporary nature due to potential judicial review remains a concern.Listen to this article in summarized format
In his ruling on June 8, the US District Court Judge Leo Sorokin ruled that the government’s charge of $100,000 as a tax requires formal ruling under the Administrative Procedure Act, including public notice and comment.
The Trump administration had introduced a $100,000 fee for fresh H-1B petitions effective September 21, 2025. The hefty fee, and increased scrutiny on H-1B had resulted in a near 40% decline in the H-1B registrations for FY27, the United States Citizenship and Immigration Services (USCIS) announced last month.
The ruling offers a temporary reprieve for H-1B workers, particularly Indians who are the largest beneficiaries of the visa.
“People who are already scheduled for interviews and have some doubts whether they will have to pay or not should rest assured that they don't have to pay $100,000,” said Rajiv Khanna, US-based immigration attorney.
Shilpa Malik, managing attorney, VisaNation Law Group, said that in the short-term one can expect increased willingness among employers to consider H-1B sponsorship and transfers if the fee remains invalidated.
“More efforts by employers to file H-1B petitions quickly (are likely) during the 60-day grace period rather than relying on B-2 bridge filings, which are being denied regularly by USCIS,” Malik said.
This also means that H-1B visa holders in the US will have more mobility within the US, as employers will be less worried about the financial burden of sponsoring H-1B visa, Malik added.
However, experts emphasised that this is not permanent yet.
Temporary reprieve
“For employers, this is a temporary reprieve, not a resolution. I would not restructure hiring plans around the assumption that the fee is gone permanently,” Xiao Wang, CEO, Boundless Immigration, said.
At least three cases were filed in the US challenging the $100,000 fee. The lawsuit was filed by the US Chamber of Commerce in district court in Washington, which was upheld. Another lawsuit was filed in San Francisco by religious groups and labour organisations and the judge in this case has not pronounced judgement yet.
“With a circuit split developing and the constitutional question of taxing authority at play, this is almost certainly headed to the Supreme Court. The question will be (whether it) is this a fee, or is it a tax? If it is a tax, only Congress can impose it,” Wang explained.
“Until that (the question) is resolved, I would view this as a very positive development, but not necessarily the final word,” Malik said,
Beyond H-1B fees
Beyond the H-1B fee, experts said this should be seen in the broader context of what is happening in the immigration landscape. If the $100,000 fee made employers cautious, the past few months have seen stricter processing of B-2 change of status application for laid off H-1B workers.
Last month, the USCIS issued a policy memo that would require those applying for green cards to apply from outside the US, barring a few exceptions. Multiple immigration experts had told ET that they are seeing officers asking pointed questions about why candidates cannot do consular processing overseas.
