Penn Immigration Guidance Advisory: Federal Court Decision Regarding the H-1B Supplemental Fee

ISSS is providing the Penn community with guidance regarding a significant
federal court decision affecting the H-1B visa program.

On June 8, 2026, the U.S. District Court for the District of Massachusetts
invalidated the Department of Homeland Security’s implementation of the
$100,000 supplemental fee that had been imposed on certain H-1B petitions
pursuant to Presidential Proclamation 10973. The court concluded that the
fee was unlawful and that the federal government lacked the authority to
impose what it characterized as a tax on H-1B petitions.

Because the litigation remains ongoing and further government action is
anticipated, Penn departments, hiring units, faculty sponsors, and H-1B
employees should exercise caution and continue to follow existing
institutional guidance.

Summary of the Court’s Decision

The court struck down the $100,000 supplemental H-1B fee on several
grounds:

• The fee constituted an unauthorized tax that Congress had not
  approved.
• DHS failed to comply with required federal rulemaking procedures.
• The policy was deemed arbitrary and capricious under federal
  administrative law.

Current Status

The court’s ruling currently vacates the policy nationwide. If the ruling remain in effect:

• Employers would no longer be required to pay the $100,000
  supplemental fee on impacted H-1B petitions.
• New and pending H-1B cases could potentially proceed without the fee
  requirement.
  However, important uncertainties remain:
• The federal government is expected to appeal the decision.
• The government may seek an immediate stay of the ruling while the
  appeal is pending.
• USCIS and the Department of State have not yet issued formal
  implementation guidance.
• Additional litigation may affect the timing and application of the court’s
  ruling.
  Guidance for Penn Departments and Hiring Units
  Until further notice, Penn departments should:

Guidance for Penn Departments and Hiring Units

Until further notice, Penn departments should:

1. Continue to follow existing H-1B filing procedures and institutional
   guidance.
2. Consult ISSS before making changes to planned H-1B filing
   strategies or budgets.
3. Avoid assuming that the fee issue has been permanently resolved.
4. Coordinate closely with ISSS regarding any H-1B petition currently in
   preparation, pending adjudication, or under review.
5. Monitor communications from ISSS for updates regarding agency
   guidance, court actions, and filing procedures.
   

Guidance for H-1B Employees and Scholars

Penn-sponsored H-1B employees should be aware that:

• The legal status of the supplemental fee remains subject to ongoing
  litigation.
• Government agencies may issue additional guidance affecting future
  filings.

ISSS Monitoring and Response

ISSS is actively monitoring:

• Government appeals of the court’s decision;
• Any request for a stay that could temporarily reinstate the fee;
• Guidance from USCIS, the Department of Homeland Security, and the
  Department of State;
• Potential impacts on Penn

ISSS remains in close communication with Penn’s immigration counsel and
national higher education and immigration organizations to assess
developments and their implications for the University.

Questions and Contact Information

Departments, administrators, faculty members, and international employees with questions regarding specific H-1B cases should contact Chiwei Huang-Ma at cwhuang@upenn.edu for guidance before taking action.

ISSS will continue to provide updates as additional information becomes available.