A federal judge has ruled that a $100,000 fee imposed on H-1B visa applications by the Trump administration is an unlawful tax that lacked congressional authorization.
A federal judge has struck down a controversial $100,000 fee imposed on new H-1B visa applications by the Trump administration, declaring it an unlawful tax that was never authorized by Congress.
U.S. District Judge Leo Sorokin issued the ruling on Monday in response to a lawsuit filed by 20 Democratic state attorneys general. The fee, announced by President Donald Trump in September 2025, significantly increased the cost for employers seeking to hire highly skilled foreign workers through the H-1B visa program.
The H-1B program traditionally issues 65,000 visas annually, along with an additional 20,000 visas for workers holding advanced degrees. Prior to the implementation of the $100,000 fee, employers typically paid between $2,000 and $5,000 in fees to sponsor an H-1B worker.
According to court filings, the exorbitant fee discouraged many employers from applying for H-1B visas. As of February 15, U.S. Citizenship and Immigration Services reported that only 85 payments of the $100,000 fee had been received, highlighting the fee’s unpopularity.
In a separate case in California, Justice Department lawyer Tiberius Davis argued that the low number of applicants indicated the fee was not intended to generate revenue. “The small number of fee payers goes to show it’s not a tax because it’s not raising revenue,” Davis stated.
Opponents of the fee, including nurse recruitment firm Global Nurse Force, contended that the charge effectively barred smaller employers from participating in the H-1B program. They argued that Congress had authorized immigration fees solely to recover administrative costs, not to impose financial barriers on employers.
The Trump administration defended the fee as a lawful penalty aimed at restricting the entry of certain foreign nationals under federal immigration law. However, Judge Sorokin disagreed, asserting that the payment functioned as a tax rather than a penalty.
“Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called,” Sorokin wrote in his decision.
This ruling adds to the ongoing uncertainty surrounding the H-1B program and broader U.S. immigration policies, as employers continue to navigate a complex regulatory landscape.
The decision highlights the challenges faced by the Trump administration’s immigration policies and their impact on the labor market, particularly in sectors reliant on skilled foreign workers.
As the legal battles over immigration fees and policies continue, the implications of this ruling will likely resonate throughout the business community and influence future immigration reforms.
According to Reuters, the ruling underscores the importance of congressional authorization in setting immigration fees and the need for a balanced approach to immigration policy that supports both employers and foreign workers.