NewsFlash! Massachusetts Federal Court Vacates $100,000 H1B Proclamation Policy

A federal district court in Massachusetts has ruled that the government’s policy implementing President Trump’s 19.Sep.2025 Proclamation imposing a $100,000 supplemental payment requirement for certain H1B petitions is unlawful and vacated the policy in its entirety. In State of California et al. v. Mullin et al., Judge Leo T. Sorokin granted the plaintiffs’ motion for summary judgment, denied the government’s cross-motion, and denied most of the motion to dismiss.

The court concluded that the $100,000 payment requirement was, in substance, a tax and that Congress had not delegated to the President authority to impose such a tax through INA sections 212(f) or 215(a). The court also held that the implementing agency materials were legislative rules adopted without APA notice-and-comment rulemaking, exceeded statutory authority, and were arbitrary and capricious.

On 19.Sep.2025, President Trump signed Proclamation 10973, which announced the $100,000 supplemental payment requirement for employers filing certain new H1B petitions. The Proclamation cited concerns that the H1B program had been exploited to suppress wages and displace U.S. workers, especially in STEM fields.

Agencies moved quickly to implement the Proclamation through memoranda, FAQs, webpage guidance, an updated fee schedule, and a payment portal. Those agency actions collectively formed the Policy challenged in this case.

For employers, the ruling removes the court-reviewed basis for the $100,000 payment requirement as implemented by the agencies. The decision is especially important for universities, nonprofit research organizations, and healthcare systems that rely on H1B workers, although appellate activity may still follow.

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