T&R Immigration News Alert

June 9, 2026

 

Federal Court Rulings Offer Relief for Employers and Foreign Nationals

 

Two recent federal court decisions have provided important relief to foreign nationals and employers.

 

On June 8, a federal district court in Massachusetts vacated the Trump administration’s supplemental $100,000 fee for certain H-1B petitions, concluding that the fee functioned as a “tax” which was beyond the president’s authority to impose, as this power rests with Congress.

 

In a separate decision on June 5, a federal district court in Rhode Island held that USCIS’s “hold-and-review” policy for immigration benefits applications from individuals who are citizens of or were born in one of 39 countries was unlawful. The court vacated the policies that had prompted the agency to pause the review and adjudication of these benefit requests. Under those policies, the agency was permitted to consider an applicant’s citizenship or birth in one of the “banned” countries as a negative factor in the adjudication process. The agency’s “hold and review” directive had also suspended the processing of asylum applications.

 

Both court decisions apply nationwide and are not just limited to the individuals and/or institutions that brought the lawsuits.

What This Means for Employers and Foreign Nationals

 

For employers, the H-1B fee ruling is a significant development because it blocks enforcement of the $100,000 H-1B fee for subject petitions, at least for now.  The regular H-1B filing fees remain in place. Any employers with pending cases where USCIS issued a request for the $100,000 fee should consult with counsel about how to respond and/or potential refunds of fees paid.

 

It is especially noteworthy that the ruling also stated that, by imposing the $100,000 fee, the Presidential Proclamation failed to assess the impact on certain sectors, namely education and healthcare. Employers in these key sectors may now be in a much better position to proceed with filing any cases they had put on hold due to the supplemental fee.

 

Given that the administration may appeal the court’s decision, employers wishing to file new H-1B petitions with a request for consular notification should speak with counsel about the potential risks in proceeding. If the administration appeals this decision, there is the possibility that another court could “stay” or stop the Massachusetts district court’s ruling pending their own review of the case.

 

For foreign nationals, the decision setting aside the agency’s adjudication “pause” represents an important development for cases that were delayed or placed on hold under USCIS’s “hold and review” policy. The court’s action vacating or nullifying the policy applies throughout the United States, to all applicants who had been impacted by the now-voided policy. The decision should open the door to renewed processing of pending applications and benefit requests, although the practical effect will depend on how quickly USCIS responds and whether the administration will seek further judicial review of the decision.

 

Proceeding With Caution

 

These are significant developments, but the legal landscape remains fluid due to both legal and political issues. The government may appeal, and future court orders or agency guidance could alter the current posture quickly. Trow & Rahal will continue to monitor both matters and issue updates. Please contact your attorney at the firm to schedule a brief consultation should you wish to discuss how these rulings may affect you.