Federal Judge Blocks Trump’s $100,000 H-1B Visa Fee, Calling It an Unlawful Tax

A federal judge has struck down one of the Trump administration’s most controversial immigration policies, ruling that President Donald Trump’s $100,000 fee on new H-1B visa applications was unlawful because it amounted to a tax imposed without congressional approval.

In a 42-page decision issued Monday, U.S. District Judge Leo Sorokin of the District of Massachusetts invalidated the fee nationwide, siding with a coalition of 20 Democratic attorneys general who argued the policy would devastate universities, hospitals, technology companies, and state agencies that rely on highly skilled foreign workers.

“The fee was not a penalty but a tax,” Sorokin wrote. The judge concluded that the administration lacked authority to impose such a charge because Congress, not the president, holds the constitutional power to levy taxes.

Trump announced the fee in September 2025 as part of a broader effort to reshape legal immigration and encourage companies to hire American workers instead of recruiting talent from abroad. The fee represented a dramatic increase from the existing H-1B filing costs, which typically range between $2,000 and $5,000 depending on the employer and application type.

The H-1B program allows U.S. employers to hire foreign professionals in specialty occupations requiring advanced education or technical expertise. The program issues 65,000 visas annually, plus an additional 20,000 for applicants with advanced U.S. degrees. It is heavily used by technology, engineering, healthcare, and research organizations.

The administration argued that the fee was a lawful regulatory measure designed to discourage employers from relying on foreign labor. During a hearing last month, Justice Department attorney Tiberius Davis told the court that the policy was intended to “incentivize companies to train up and hire American workers.”

Sorokin appeared skeptical of that argument during oral arguments, questioning how far the administration’s theory of executive power could extend.

“I’m trying to understand the government’s position on the scope,” the judge said during the May hearing, pressing government lawyers on whether the same authority could justify other financial burdens imposed on employers or immigrants.

In Monday’s ruling, Sorokin ultimately agreed with the states’ argument that the fee functioned as a revenue-generating tax rather than a regulatory tool. According to reports on the decision, he found that the charge constituted an “unauthorized tax” because Congress had never granted the State Department or U.S. Citizenship and Immigration Services the authority to collect such a fee.

The ruling delivers a significant victory to major employers that depend on international talent. Companies such as Microsoft, Amazon, and Meta, along with universities and healthcare systems, warned that the fee would make the United States less competitive in attracting people who work in STEM.

The legal challenge was led by California and joined by 19 other Democratic-led states. Their attorneys argued that public universities, state hospitals, and research institutions would face severe recruitment challenges if forced to pay an additional $100,000 for every foreign professional they sought to hire.