Judge strikes down Trump's $100K H-1B visa fee

A federal judge in Boston on Monday struck down the Trump administration's $100,000 fee on new H-1B visas, ruling the charge an unlawful tax that Congress never authorized.

U.S. District Judge Leo Sorokin sided with 20 states that challenged the policy, concluding that the executive branch exceeded its authority and violated the Administrative Procedure Act, the law governing how federal agencies issue regulations. The ruling, a summary judgment, contradicts an earlier federal court decision in Washington that upheld the same fee hike.

"The Court finds that the Policy imposes a tax on H-1B petitions without the requisite delegation by Congress," Sorokin wrote, according to The Associated Press.

Why the judge ruled the fee a tax

Sorokin, who was appointed by President Barack Obama, rejected the administration's argument that the fee was a monetary penalty the president could impose under federal immigration law to restrict the entry of certain foreign nationals. He concluded instead that it functioned as a tax.

"Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called," he wrote, according to NBC News, which cited Reuters.

The judge leaned on a Supreme Court precedent set in February, when the high court struck down Trump's "reciprocal" tariffs on the grounds that he lacked the legal authority to impose them. In that case, the court ruled that tariffs assessed by the Department of Homeland Security amounted to taxes for purposes of the Constitution's Taxing Clause, Sorokin noted, CNBC reported. The Homeland Security Department is a defendant in the H-1B case.

How the fee upended the visa program

Trump imposed the $100,000 fee in a presidential proclamation last September, arguing the H-1B program was being misused and was undermining U.S. economic and national security through the large-scale replacement of American workers. Before the change, employers typically paid about $2,000 to $5,000 per application, CNBC and NBC News reported.

The H-1B program, created in 1990, offers 65,000 visas a year, plus 20,000 more for workers holding advanced degrees from U.S. institutions, with visas approved for three to six years. The visas are meant for high-skilled jobs that are hard to fill with American workers, and deep-pocketed technology companies are the biggest users; nearly three-quarters of approvals go to workers from India, the AP reported. Workers facing uncertainty over case timelines often find their petitions in limbo, a situation echoed in broader immigration delays covered in our guide on what to do when your USCIS case is stuck.

The increase set off panic among confused employers, students and workers in the United States and abroad, and triggered several lawsuits. Several companies, including Walmart, said they would pause participation in the program. Adoption of the fee itself was limited: just 85 payments of the $100,000 charge had been made as of Feb. 15, the administration said in a March filing, according to CNBC and NBC News.

States and industry groups react

The 20 states that sued argued the fee would impede their ability to hire teachers, staff public colleges and universities, conduct academic research and retain medical workers. "Today a court put an end to this administration's illegal attempt to destroy this critical program and the many jobs it makes possible," New York Attorney General Letitia James said, the CNBC report noted.

Massachusetts Attorney General Andrea Joy Campbell called the decision "a victory" that "protects the integrity of the H-1B visa program as a tool to address severe labor shortages." American Medical Association President Bobby Mukkamala called the ruling "a victory for patients," the AP reported, noting physician shortages in rural and underserved areas. Employees navigating workplace disputes during such transitions may want to consult an employment lawyer about their rights.

The Department of Homeland Security said it disagreed with "this blatant judicial activism dismantling President Trump's historic efforts for immigration reform." White House spokesperson Taylor Rogers said the administration "is confident this order will be reversed on appeal," the AP reported.

Because a Washington federal court had previously upheld a nearly identical order, and a separate suit by religious and labor groups is pending in San Francisco, the conflicting rulings set up the possibility of divided decisions across three appellate circuits. The fee had been scheduled to expire in September 2026. For visa holders weighing their next steps, see our explainer on how long a green card renewal takes.

Frequently Asked Questions

What did the judge actually rule?

U.S. District Judge Leo Sorokin ruled that the $100,000 H-1B fee was an unlawful tax that Congress never authorized, and that the policy violated the Administrative Procedure Act and the Constitution. He vacated the fee in a summary judgment.

How much did H-1B visas cost before the fee?

Employers typically paid about $2,000 to $5,000 per application before the change, according to CNBC and NBC News. Trump's September proclamation raised that to $100,000 for new petitions.

Does this ruling end the fee permanently?

Not necessarily. The administration says it will appeal, an earlier Washington court upheld a nearly identical fee, and another suit is pending in San Francisco. The conflicting decisions could lead to divided rulings across three appellate circuits.

How many H-1B visas are issued each year?

The program offers 65,000 visas annually, plus an additional 20,000 for workers with advanced degrees from U.S. institutions, with visas approved for three to six years.

Sources

Reporting compiled from court records and the cited source outlets.