Strongly disagrees but...: What does the 58-word memo from DHS on $100k H-1B visa fee mean?

The Department of Homeland Security (DHS) has issued a clarification regarding a $100,000 fee imposed on certain H-1B visa petitions, stating it will comply with a recent court order that vacated the requirement. While DHS "strongly disagrees" with the ruling, it will not collect the fee as the administration considers its next steps.

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DHS strongly disagrees with the Court’s order and is considering next steps. DHS will, however, comply with the court’s order.

The U.S. District Court for the District of Massachusetts ruled that the Trump administration exceeded its authority by implementing the fee without congressional approval. This decision, affecting employers nationwide, means that companies can currently proceed with affected H-1B filings without the additional $100,000 payment, according to experts at Murthy Law Firm.

The fee, introduced by a proclamation from former President Donald Trump, was applicable to companies hiring skilled foreign workers on H-1B visas who required consular processing (i.e., were not already in the U.S.). The government received only 85 payments, totaling $8.5 million, by mid-February, indicating low uptake and questioning its success as a revenue generator. Bernhard Mueller, co-chair of immigration practice at Ogletree Deakins, noted the fee's limited success in generating revenue.

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As things stand, employers appear able to proceed with affected H1B filings without the additional fee, subject to any future developments.

The court's ruling applies broadly, not just to the 20 states that initiated the lawsuit. As long as no stay order is issued, the $100,000 fee for H-1B filings remains suspended.

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The $100,000 fee was not a success in terms of revenue generation.