Federal Court Strikes Down H-1B Declaration Fee
A federal district court in Massachusetts has overturned the government’s $100,000 H-1B declaration fee, concluding that the policy exceeds the executive branch’s authority and violates the Administrative Procedure Act. This ruling prohibits U.S. Citizenship and Immigration Services (USCIS) from collecting these fees nationwide for the foreseeable future.
Significant Cost Increase Challenged
The controversial fee, which was introduced through a presidential proclamation and implemented by the agency, aimed to apply to certain H-1B applications. This marked one of the most substantial cost increases imposed on employers supporting foreign talent. The court determined that the fee functions more as a tax rather than a simple filing charge, necessitating Congressional approval.
Refund Policy Adjusted Due to Procedural Flaws
Additionally, the court found that the implementation of the fee was procedurally flawed, violating federal administrative law. As a result, any fees collected are now fully refundable, extending beyond those involved in the litigation.
Contradictory Court Rulings Create Uncertainty
This ruling introduces uncertainty, as it contradicts a previous federal court decision issued in late 2025, which upheld the fees. The Justice Department is anticipated to appeal this decision, possibly seeking an emergency stay to allow for continued fee collection during the appeal process.
Impact on Employers and Immigration Applications
The ruling offers temporary relief to employers of H-1B workers, easing a considerable financial burden related to applications. However, ongoing legal challenges and the potential for immediate suspension mean that employers should stay vigilant and avoid making long-term plans based on this judgment.
Rhode Island Court Invalidates Several Immigration Policies
A federal judge in Rhode Island has invalidated several U.S. immigration policies that froze applications for benefits from nationals of countries under travel restrictions. The case, Dorcas International Institute v. Rhode Island Department of Immigration, determined that the agency exceeded its authority by withholding crucial immigration benefits and treating citizenship as a factor against applicants.
Policies Affected by Court Ruling
The ruling invalidates four major policies, including the withholding of benefits, suspension of application adjudications for nationals from around 39 designated countries, reconsideration of previously granted benefits, and the practice of using nationality from restricted countries as a negative factor in discretionary assessments.
State Department to Launch Visa Interview Pilot Program
The Department of State plans to introduce a pilot program on July 1, 2026, aimed at expediting interview appointments for B-1 and B-2 visitor visas for an additional fee. Set to run until December 31, 2026, this initiative seeks to alleviate ongoing backlogs at high-demand consulates.
New B-1 Business Visitor Category Announced
In a related development, the State Department has launched a new B-1 business visitor category. This initiative allows specific foreign nationals to enter the U.S. temporarily for specialized training tied to foreign-sourced equipment or technology. While potentially offering a faster alternative to traditional work visas, this category is narrowly defined and is expected to undergo rigorous scrutiny.
