A federal court in the United States has struck down a controversial USD 100,000 fee introduced by President Donald Trump’s administration for new H-1B visa applications, ruling that the measure was unlawful and exceeded presidential authority.
The decision was delivered on Monday by US District Judge Leo Sorokin in Boston in response to a lawsuit filed by a coalition of 20 Democratic state attorneys general. The states had challenged the policy shortly after it was announced in September last year.
Court rules fee was effectively a tax
In his ruling, Judge Sorokin concluded that the additional charge functioned as a tax rather than a penalty. He stated that the federal government could not impose such a tax without explicit approval from Congress.
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According to the court, neither the US State Department nor the US Citizenship and Immigration Services (USCIS) had the legal authority to enforce the fee. Sorokin further noted that the policy went beyond the powers granted to the president and could negatively affect important sectors such as healthcare and education, which often rely on highly skilled foreign professionals.
‘The court finds that the policy imposes a tax on H-1B petitions without the requisite delegation by Congress,’ the judge wrote in his decision.
Trump administration plans appeal
The ruling marks a setback for the Trump administration, which has defended the policy as part of its broader effort to prioritise American workers in the job market.
Following the court’s decision, White House spokesperson Taylor Rogers said the administration disagreed with the ruling and intends to challenge it in a higher court.
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‘We remain confident that the decision will be overturned on appeal,’ Rogers said in a statement.
H-1B programme and its importance
The H-1B visa programme allows US employers to hire foreign professionals in specialised fields such as technology, engineering, healthcare and finance. Each year, 65,000 visas are made available under the standard quota, with an additional 20,000 reserved for applicants holding advanced degrees.
The visas are generally issued for three years and can be extended for another three years.
Indian professionals account for more than 70 per cent of approved H-1B visas, making India the largest beneficiary of the programme.
Before the proposed increase, employers typically paid between USD 2000 and USD 5000 in government fees when sponsoring a foreign worker.
Why the fee was introduced
The Trump administration introduced the USD 100,000 charge as part of its efforts to reduce dependence on foreign labour and encourage companies to hire American workers instead.
Officials argued that the steep fee would discourage businesses from choosing overseas talent when qualified domestic candidates were available. Several Republican leaders, including Vice President JD Vance, have also raised concerns about alleged misuse and fraud within the H-1B system.
Critics, however, argued that the policy would place a significant financial burden on employers and make it difficult for smaller companies to recruit skilled international workers.
Impact of the policy
Had it remained in place, the fee would have dramatically increased the cost of hiring foreign professionals through the H-1B programme. Business groups warned that the measure could have limited access to specialised talent and reduced competitiveness for many US employers.
Reports had suggested that more than 200,000 applicants were willing to pay the fee in exchange for faster processing of their visa applications. However, USCIS records showed that only 85 payments had been received by February 15.
First published on: Jun 09, 2026 06:54 AM IST
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