Judge Blocks $100K H-1B Visa Fee Plan

A federal judge has struck down the Trump administration’s plan to impose a $100,000 fee on certain new H-1B visa applications.

Judge Leo Sorokin of the Federal District Court for the District of Massachusetts blocked the fee nationwide, ruling June 8 that the executive branch exceeded its legal authority.

“The court finds that the policy imposes a tax on H-1B petitions without the requisite delegation by Congress,” Sorokin wrote in his 42-page opinion.

The ruling was in response to a lawsuit filed by 20 states that argued the fee harmed employers, educational institutions, healthcare providers, and state economies that depend on highly skilled foreign workers.

The suit was one of at least three challenging the fee, which took effect in September and represented a significant shift in the administration of the H-1B visa program.

Immediate Impact

Sorokin concluded that the fee functioned as a tax rather than a legitimate regulatory charge, which the Trump administration claimed.

“The substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called,” the judge wrote.

The judge also determined that the policy violated the Administrative Procedure Act, the federal law governing how agencies develop and implement regulations.

“The substance and application of the $100,000 payment reveal that it is a tax.”

U.S. District Court Judge Leo Sorokin

According to the ruling, the administration failed to demonstrate that existing immigration statutes granted authority to impose such a substantial financial requirement on visa petitions.

The decision immediately bars the U.S. Department of State and U.S. Citizenship and Immigration Services from enforcing the fee requirement.

Existing H-1B filing procedures and fee structures remain in place while the case proceeds.

Business Reaction

The H-1B program allows U.S. employers to hire foreign professionals in specialty occupations requiring advanced knowledge and skills.

The visa category is heavily used by technology companies, universities, research institutions, hospitals, and other employers facing shortages of specialized talent.

Business groups and immigration advocates welcomed the ruling, describing it as a victory for employers that rely on international talent.

The U.S. Chamber called the fee “cost-prohibitive for U.S. employers, especially start-ups and small and midsize businesses.”

Technology companies, in particular, warned that the fee could significantly disrupt hiring plans and reduce the country’s competitiveness in attracting highly skilled workers.

The U.S. Chamber of Commerce challenged the fee in a lawsuit filed in October, calling it “cost-prohibitive for U.S. employers, especially start-ups and small and midsize businesses.”

“If implemented, that fee would inflict significant harm on American businesses, which would be forced to either dramatically increase their labor costs or hire fewer highly skilled employees for whom domestic replacements are not readily available,” the suit noted.