A recent court order has temporarily paused the enforcement of the Annual Asylum Fee rule introduced by the United States Citizenship and Immigration Services (USCIS). The order, issued by the U.S. District Court for the District of Maryland, affects thousands of asylum seekers who received fee notices starting in October 2025.
The case, Asylum Seeker Advocacy Project v. United States Citizenship and Immigration Services, et al., docket number SAG-25-03299, challenges USCIS’s authority to impose an annual payment on asylum applicants. The court’s temporary stay means that no applicant is currently required to pay the Annual Asylum Fee while litigation continues.
Background on the Annual Asylum Fee Policy
The Annual Asylum Fee first appeared in a notice published in the Federal Register (90 FR 34511) on July 22, 2025. The notice, titled “USCIS Immigration Fees Required by HR-1 Reconciliation Bill,” explained how DHS planned to implement the new payment rule.
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The notice stated that any noncitizen with a pending Form I-589 for the entire fiscal year 2025 must pay the fee.
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It also applied to applicants whose asylum cases stayed pending with USCIS for 365 days or more after October 1, 2024.
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Starting from the one-year anniversary of each filing, the applicant would pay the Annual Asylum Fee yearly while the case remained pending.
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Around October 1, 2025, USCIS began sending personal payment notices to affected applicants, with full instructions for payment.
Legal Challenge and the Court’s Decision
The Asylum Seeker Advocacy Project (ASAP) and several applicants filed a lawsuit against USCIS and DHS. They argued that the Annual Asylum Fee created an unfair financial burden on people seeking protection. The plaintiffs also claimed that the rule conflicted with U.S. asylum law and violated administrative procedure standards.
On October 30, 2025, Judge Stephanie A. Gallagher issued an order temporarily stopping the fee’s implementation. This decision required USCIS to suspend all enforcement actions tied to the Annual Asylum Fee until the court issues a final judgment.
In response, USCIS released a public statement acknowledging the court’s order. The agency said it disagreed with the ruling but would follow it while judicial review continues. As a result, USCIS paused all new Annual Asylum Fee notices. Applicants who already received payment requests are advised not to make any payments at this time.
What the Temporary Stay Means for Asylum Applicants
The temporary court order directly affects asylum seekers who have received or expect to receive Annual Asylum Fee notices. USCIS has confirmed that anyone who already received a payment notice may disregard it for now. The agency will not take any adverse action against those who do not pay while the stay remains in effect.
However, USCIS also stated that fees already paid will not be refunded. Applicants who have completed their payments are advised to keep their receipts as proof of compliance, should the fee requirement be reinstated in the future.
For now, the agency has paused further issuance of payment notices and will provide updated instructions once the litigation concludes or the stay is lifted. This means no new Annual Asylum Fee payments are due until further notice from USCIS.
How the Annual Asylum Fee Works
Before the court’s intervention, the Annual Asylum Fee was designed to fund administrative costs related to processing asylum applications. USCIS planned to collect this payment once per year from individuals with pending asylum cases that extended beyond a full fiscal year.
The Federal Register notice clarified that the fee would not be due automatically, but only after USCIS sent a formal notice. Each notice would specify the payment deadline, acceptable methods of payment, and consequences for failure to pay.
In practice, this meant that an asylum applicant with a pending Form I-589 for over a year could receive a notice requiring payment for that fiscal year, and additional notices annually thereafter until a final decision on their case. The first wave of such notices began rolling out in October 2025, coinciding with the start of the new fiscal year.
The Fiscal Year 2025 Annual Asylum Fee amount has not been publicly disclosed in detail, but the USCIS notice suggested it would be standardized across all pending asylum applications. Future adjustments were expected through subsequent federal notices.
Why the Annual Asylum Fee Faced Opposition
The introduction of the Annual Asylum Fee generated immediate backlash from immigration advocates, legal organizations, and humanitarian groups. Critics argued that the rule unfairly penalized asylum seekers, many of whom arrive in the United States with limited financial means and no legal employment authorization during the first months of their application.
Advocates also questioned the legal foundation of the rule. They claimed that Congress had not explicitly authorized USCIS to impose recurring annual fees on asylum applicants.
Many advocacy groups, including the Asylum Seeker Advocacy Project (ASAP), said the policy went against the humanitarian intent of U.S. asylum law. The asylum system exists to protect people fleeing persecution and seeking refuge in the United States.
However, many applicants already face long processing times that stretch into years. The backlog in asylum cases makes recurring payments difficult, creating an added financial burden and sense of unfairness
USCIS Response and Next Steps
Despite the court’s temporary order, USCIS says the Annual Asylum Fee remains essential to fund the asylum system’s operations. The agency also stated that, although it disagrees with the court’s reasoning, it will follow the judicial process.
Applicants who have paid the Annual Asylum Fee do not need to take further action for now. Those who received payment notices but have not paid can disregard them until USCIS releases new instructions. The agency also clarified that it will not issue late payment penalties during the stay.
Immigration attorneys recommend that clients retain all communications and receipts related to the fee in case the rule is reinstated or modified. They also advise applicants to monitor USCIS announcements regularly for updates, as the outcome of the litigation could impact future payments.
Broader Implications for the U.S. Asylum System
The court’s stay on the Annual Asylum Fee rule comes amid broader debates about the financial and administrative burdens facing the asylum system. USCIS has faced mounting backlogs, limited staffing, and fluctuating funding since the pandemic. The agency has also relied heavily on filing fees to sustain its operations, making the new fee structure part of a larger revenue strategy.
If the Annual Asylum Fee is ultimately upheld, it could signal a major policy shift in how the United States manages asylum costs. Conversely, if the court permanently blocks the rule, it may force DHS and USCIS to explore alternative funding mechanisms.
Policy analysts say the litigation outcome could shape future immigration rulemaking, especially regarding fee structures and administrative cost recovery. The case also underscores the ongoing tension between humanitarian protection principles and fiscal sustainability in U.S. immigration policy.
What Applicants Should Do Now
For asylum seekers, the key takeaway is clarity: no one needs to pay the Annual Asylum Fee right now. USCIS will release further guidance once the court proceedings are resolved. Applicants should:
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Keep copies of any Annual Asylum Fee notices already received.
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Retain proof of any payments made before the court order.
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Avoid sending new payments unless explicitly directed by USCIS.
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Check the official USCIS website and Federal Register for updates.
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Consult with an immigration attorney for case-specific advice.
Until a final court decision is issued, all pending Annual Asylum Fee obligations remain on hold.
Conclusion
The Federal Court’s pause on the Annual Asylum Fee represents a significant development in U.S. immigration policy. It reflects growing concern over the financial pressure on asylum seekers and the administrative complexities of enforcing a new annual charge.
For now, asylum applicants can proceed with their cases without worrying about immediate payment obligations. USCIS will continue to comply with the Maryland court’s order while preparing for potential appeals or revisions to the rule.
Immigration professionals and applicants should stay informed about the court case. The final ruling could change how the U.S. funds and manages asylum.
Protect your asylum rights and stay informed on critical policy changes. Contact Maple Crest Immigration Law Firm today for expert guidance on your application.
