Judge Voids Trump $100,000 H-1B Visa Fee as Unlawful Tax

A federal judge in Boston has struck down the Trump administration's attempt to impose a $100,000 fee on new H-1B visa petitions, ruling that the policy amounted to an unauthorized tax and exceeded the executive branch's statutory authority. The decision by U.S. District Judge Leo Sorokin, an Obama appointee, blocks one of the administration's most aggressive efforts to reshape the program that brings in highly skilled foreign workers.

Sorokin's Monday ruling came in a lawsuit filed by 20 states, led by Democratic attorneys general. He found that the fee, announced last September through a presidential proclamation, violated the Administrative Procedure Act and lacked the congressional delegation required for imposing taxes. The judge noted that the payment functioned as a tax rather than a legitimate penalty or restriction on entry, drawing on the Supreme Court's February decision that invalidated much of the administration's tariff regime on similar constitutional grounds.

The H-1B program is designed for specialty occupations where employers demonstrate they cannot readily find qualified American workers. Technology firms account for the largest share of approvals, though the visas also support hospitals, universities and research institutions. Roughly three-quarters of recipients come from India. Before the new policy, petition costs typically ran several thousand dollars; the increase to more than $100,000 triggered immediate uncertainty for employers, international students and workers already in the country on temporary status.

The administration defended the fee as necessary to prevent the program from displacing American labor, arguing that the Immigration and Nationality Act gave the president broad power to limit entries deemed detrimental to U.S. interests. Sorokin rejected that framing, concluding the measure was not a targeted entry restriction but a blunt revenue tool that Congress alone can authorize.

New York Attorney General Letitia James, whose office joined the suit, said the ruling protects access to doctors, teachers and other specialists who fill documented shortages. The states had argued that even before the fee increase, the program was already difficult to navigate for employers in health care and education.

The White House indicated it will appeal. President Trump, when asked about the decision, criticized the judiciary's role in reviewing executive immigration actions. The administration has previously used proclamations and regulatory changes to tighten the program, including stricter wage requirements and limits on extensions for certain workers.

H-1B visas remain capped at 85,000 annually, with an additional lottery process that favors advanced-degree holders. Employers must attest that they are not displacing U.S. workers and are paying prevailing wages. Data from U.S. Citizenship and Immigration Services show that approvals have fluctuated with economic conditions and policy shifts, but demand from universities and hospitals has remained steady even as tech hiring cycles vary.

Legal observers note that the ruling reinforces judicial skepticism toward unilateral executive actions that impose significant financial burdens without clear statutory backing. The case now moves to the appeals process, where courts will again weigh the scope of presidential authority under the immigration statutes against the constitutional requirement that taxes originate in Congress. For now, employers sponsoring H-1B workers will continue to pay the lower, pre-existing fee schedule.