A federal district court in Massachusetts that last month struck down the administration’s one-time $100,000 fee on new H-1B petitions issued a follow-up order on July 16 temporarily staying its own judgment pending government appeal. The unusual sequence—first vacating, then pausing the vacatur—means the fee could still be collected until the First Circuit rules, leaving employers in limbo. The fee, imposed by Presidential Proclamation 10973, was justified by the White House as a deterrent to “cheap foreign labor.” The court initially called the levy an illegal tax lacking congressional authorization, but agreed to the stay after DOJ lawyers argued sudden reversal would disrupt revenue flows and ongoing IT system changes. Immigration counsel now face a binary choice: file petitions and pay the $100k hoping for future refunds, or defer filings and risk cap or project timelines. Technology, healthcare and consulting firms—top users of the H-1B category—say the cash-flow impact is significant; a single large intake of 50 foreign specialists could carry $5 million in unexpected fees. Some employers are exploring alternative categories such as the O-1 or Treaty Trader visas, while others are front-loading L-1 blanket transfers from overseas affiliates. Universities, exempt from the H-1B cap but not the new fee, warn that research programs could stall without foreign post-docs. The First Circuit has set an expedited briefing schedule, with oral argument expected in September. Until a definitive ruling, mobility managers should budget conservatively, track court docket updates, and prepare contingency labor strategies.
Source: ASCP / Court filings
