Judge Rejects Trump’s $100K H-1B Visa Fee Rule

By Staff, Agencies

A United States federal judge has struck down a controversial $100,000 fee imposed by President Donald Trump on new H-1B visas, ruling it amounted to an unauthorized tax that was never approved by Congress.

The decision marks a significant setback for the Trump administration’s efforts to reshape immigration policy through executive action and could have major implications for US employers that rely on highly skilled foreign workers.

In its ruling, US District Judge Leo Sorokin ruled Monday that the administration lacked the legal authority to impose the fee, rejecting claims that it constituted a lawful penalty under federal immigration law.

However, the administration argued the president had broad authority to restrict entry of foreign nationals and impose the fee, but the judge ruled it effectively functioned as an unauthorized tax, blocking the State Department and USCIS from enforcing it.

Notably, the court also cited a recent US Supreme Court decision that limited executive authority to impose sweeping economic measures without explicit congressional approval, reinforcing the view that the White House cannot create new taxes by presidential proclamation alone.

Separately, twenty Democratic state attorneys general challenged the policy, arguing it would burden employers and hinder recruitment of skilled foreign workers, as businesses warned the steep fee increase could deter hiring and investment.

In the context, California Attorney General Rob Bonta called the measure an attack on US competitiveness, while industry groups said it risked harming sectors reliant on specialized talent such as tech, engineering, and research.

In response, the Trump administration said it will appeal the ruling, with White House spokesperson Taylor Rogers insisting the president has broad authority to restrict entry of foreign nationals.

Additionally, the administration continues to pursue broader immigration changes, including tighter vetting for H-1B applicants and reforms favoring higher-paid, highly skilled workers.

Meanwhile, the H-1B program—allocating 65,000 visas annually plus 20,000 for advanced degree holders—remains central to US tech hiring.

Ultimately, only 85 employers reportedly paid the $100,000 fee by mid-February, with the ruling expected to ease business pressure and reignite debate over immigration policy and executive power.