An IMGlobalWealth.com News Report
A US federal judge has struck down President Donald Trump’s controversial requirement that employers pay a $100,000 fee for new H-1B visa applications, ruling that the measure amounted to an unlawful tax that Congress had never authorised.
The decision, issued by District Judge Leo Sorokin in Boston, marks the latest legal setback for the administration’s efforts to tighten legal immigration channels while prioritising the hiring of American workers. The ruling came in response to a lawsuit brought by 20 Democratic state attorneys general, who argued that the President lacked the authority to impose such a fee.
“the decision restores the existing H-1B framework for now and underscores the ongoing legal and political debate surrounding skilled immigration in the United States”
The H-1B visa programme, established under the Immigration Act of 1990, allows US employers to recruit highly skilled foreign professionals in specialist fields such as information technology, engineering, healthcare, finance, and scientific research. The programme has become a cornerstone of America’s technology sector, with companies such as Microsoft, Amazon, Meta, and Google relying heavily on it to fill positions requiring advanced expertise.
Each year, the United States issues 85,000 new H-1B visas through a lottery system, including 20,000 reserved for holders of advanced degrees from American universities. Demand routinely exceeds supply, reflecting the continued need for specialised talent in the world’s largest economy.
Trump’s administration introduced the $100,000 fee in September 2025 as part of a broader effort to discourage companies from hiring foreign workers and to incentivise investment in domestic talent. The fee represented a dramatic increase from the existing costs, which generally ranged between $2,000 and $5,000 per application.
Judge Sorokin concluded that the fee was effectively a tax rather than a regulatory measure and therefore required explicit congressional approval. He rejected the administration’s argument that the President’s immigration powers permitted such a charge, citing constitutional limits on executive authority.
The ruling is expected to be welcomed by business groups, universities, hospitals, and technology companies that argued the measure would make it significantly harder and more expensive to attract global talent. Several organisations, including the US Chamber of Commerce, have challenged the policy in court.
While the administration is widely expected to appeal, the decision restores the existing H-1B framework for now and underscores the ongoing legal and political debate surrounding skilled immigration in the United States.
