A US federal court has struck down President Donald Trump’s controversial $100,000 fee on new H-1B visa applications, ruling that the measure was unlawful and exceeded presidential authority. The decision is being viewed as a major development for employers, technology firms, universities, healthcare institutions, and thousands of skilled foreign professionals seeking employment in the United States.
The ruling was delivered by US District Judge Leo Sorokin in Boston after a legal challenge brought by a coalition of 20 Democratic state attorneys general. The lawsuit argued that the extraordinary fee created an unfair financial burden on employers and limited access to highly skilled foreign workers who contribute to critical sectors of the American economy.
Trump had announced the fee in September 2025 as part of a broader effort to tighten immigration policies and reshape the H-1B visa programme. The fee dramatically increased the cost of sponsoring foreign professionals, raising expenses far beyond the traditional application charges, which generally ranged from a few thousand dollars. The administration maintained that the move would encourage companies to prioritize hiring American workers and reduce reliance on overseas talent.
However, Judge Sorokin concluded that the $100,000 charge functioned as a tax rather than a regulatory penalty. According to the ruling, the US Constitution grants Congress—not the president—the authority to impose taxes. The court therefore found that the administration lacked the legal power to introduce such a fee without congressional approval.
The judgment also stated that the administration’s justification under federal immigration law was insufficient. Government lawyers had argued that the president possessed broad powers to restrict the entry of foreign nationals when deemed necessary for national interests. The court rejected that interpretation, holding that immigration authority does not automatically include the power to impose substantial financial charges resembling taxes.
The ruling is expected to be welcomed by major technology companies that depend heavily on the H-1B programme to recruit engineers, software developers, researchers and other highly skilled professionals from around the world. Industry groups had warned that the unprecedented fee would make hiring international talent prohibitively expensive and could undermine innovation and competitiveness in the United States.
State officials who challenged the policy argued that the fee would also affect public institutions, including universities, hospitals and research centres that rely on foreign professionals to fill specialized positions. They maintained that the policy threatened economic growth and workforce development in several sectors already facing talent shortages.
California Attorney General Rob Bonta, who led the coalition challenging the fee, welcomed the court’s decision and said the measure had harmed efforts to attract global talent. Supporters of the lawsuit argued that maintaining access to skilled workers remains essential for innovation, healthcare delivery and economic development.
Although the fee has now been invalidated, the legal battle may not be over. The Trump administration is expected to appeal the ruling, setting the stage for further court proceedings. Other lawsuits challenging the fee and related immigration measures are also pending.
The decision marks a significant setback for one of the administration’s most high-profile efforts to restrict legal immigration through executive action. For now, employers seeking to hire foreign professionals through the H-1B programme will not be required to pay the controversial $100,000 fee, unless a higher court overturns the ruling in the future.
