On June 8, 2026, the U.S. District Court for the District of Massachusetts (Sorokin, J.) invalidated the $100,000 payment requirement that Proclamation 10973 imposed on certain H-1B petitions in September 2025. Granting summary judgment to a coalition of twenty states, the court held that the payment is, in substance, an unauthorized tax.

The court reasoned that the payment is a tax rather than a penalty because hiring H-1B workers remains lawful, and that INA §§ 212(f) and 215(a)—which authorize the President to impose "restrictions," "rules," "limitations," and "exceptions" on the entry of noncitizens—do not, by their ordinary meaning, include the power to tax. Applying the Supreme Court's recent decision in Learning Resources, Inc. v. Trump, the court found that Congress had not clearly delegated its taxing power and that the Policy was therefore ultra vires. The court also confirmed that the states had standing, that the consular-nonreviewability doctrine did not bar their forward-looking challenge, and that the agencies' implementation was reviewable under the APA.

What this means for employers. The ruling offers a strong basis to challenge the $100,000 payment, and its tax rationale logically extends to all H-1B petitions, not just those of the public and nonprofit plaintiffs. However, this is a district court decision that may be appealed to the First Circuit, and the scope and timing of relief—including any stay pending appeal—remain to be seen. Before relying on the decision to forgo payment, coordinate with counsel; preserve documentation of any payments already made in case refunds become available; and watch for updated USCIS and Department of State guidance.

We will continue to provide updates in the event USCIS releases guidance or clarifying instructions with respect to this Court ruling, or if the Government appeals and seeks a stay of the ruling.

For questions about how this affects your organization, please contact our Immigration Practice Group.

  For further information, please contact:

Anthony F. Siliato | Scott R. Malyk | Stacey A. Simon

Meyner and Landis LLP

One Gateway Center, Suite 2500, Newark, New Jersey 07102

Asiliato@meyner.com | Smalyk@meyner.com | Ssimon@meyner.com

Disclaimer: The information contained herein is intended only for informational purposes and is not a substitute for legal advice. Further, reading this Client Alert in no way establishes an attorney/client relationship between you and Meyner and Landis LLP. Readers should consult legal counsel for definitive advice regarding the current law and regulations and how those apply to your unique situation within your organization.