Trump's $100,000 H-1B visa fee is unlawful, US judge rules

Boston — A federal judge on Monday struck down a $100,000 fee imposed by U.S. President Donald Trump on new H-1B visas for highly skilled foreign workers, ruling that it amounted to an unlawful tax that Congress never authorized.

U.S. District Judge Leo Sorokin of Boston issued the decision in a lawsuit brought by 20 Democratic state attorneys general. The coalition challenged the fee announced by Trump in September, which sharply increased the cost of obtaining H-1B visas widely used by technology companies to hire foreign professionals.

The administration had argued that the fee was a lawful financial penalty under federal immigration law, which grants the president authority to restrict the entry of certain foreign nationals deemed “detrimental to the interests of the United States.”

However, Sorokin rejected that argument, concluding that the charge was not a penalty but a tax, and therefore required congressional approval. He ruled that neither the U.S. State Department nor U.S. Citizenship and Immigration Services had the authority to implement it.

“In substance and application, the $100,000 payment reveals itself to be a tax, regardless of how it is labeled,” Sorokin wrote. He was appointed to the bench by former President Barack Obama.

The judge also referenced a recent U.S. Supreme Court decision from February that struck down Trump-era tariffs imposed under national emergency powers. Sorokin said the same reasoning applied in this case, limiting the executive branch’s authority to impose such financial measures without congressional approval.

White House spokeswoman Taylor Rogers said the administration was confident the ruling would be overturned on appeal. She maintained that the president has broad authority to regulate the entry of foreign nationals.

“President Trump has clear legal authority to restrict entry of any class of aliens he determines is not in America’s best interests, and that is exactly what he did,” Rogers said.

The H-1B visa program provides 65,000 visas annually, plus an additional 20,000 for applicants with advanced degrees. Visas are typically granted for three to six years. Before the contested fee, employers generally paid between $2,000 and $5,000 in processing costs.

Trump defended the policy in a proclamation, arguing that the H-1B system had been “deliberately exploited” to replace American workers with lower-paid foreign labor.

The $100,000 fee did not apply to individuals already in the United States on student visas, who make up a significant share of new H-1B recipients.

Only a small number of employers had paid the fee before it was challenged in court. By mid-February, U.S. Citizenship and Immigration Services reported receiving just 85 payments, according to court filings.

The administration has also introduced stricter vetting measures for H-1B applicants and proposed changes to the visa selection process that would prioritize higher-skilled and higher-paid workers.

The policy has faced multiple legal challenges, including a separate lawsuit filed by the U.S. Chamber of Commerce, which is appealing an earlier ruling in Washington, D.C., that allowed the fee to remain in place at that time.

California Attorney General Rob Bonta, who led the multistate coalition, praised the ruling, calling the fee an unlawful burden on innovation and the U.S. economy.

“This tax was an attack on America’s ability to attract and retain high-skilled talent that strengthens our economy and helps meet critical workforce needs,” Bonta said.

The case is expected to continue as the Trump administration pursues an appeal. -Reporting by Nate Raymond in Boston; Additional reporting by Daniel Wiessner; Editing by David Bario, Cynthia Osterman, Aurora Ellis and Sanjeev Miglani/Reuters