US judge blocks Donald Trump’s $100,000 H-1B fee, calls it unlawful tax

A US federal judge has struck down the Trump administration’s controversial $100,000 fee imposed on H-1B visa applications, ruling that the charge was unlawful because it was effectively a tax introduced without congressional authorisation.

US district judge Leo Sorokin, sitting in Boston, Massachusetts, said the policy could not stand as it amounted to a taxation measure that bypassed Congress’s constitutional authority over immigration and revenue decisions.

“...the Court finds that the policy imposes a tax on H-1B petitions without the requisite delegation by Congress,” Sorokin wrote in his ruling.

He further noted that the nature and implementation of the payment made its intent clear: “Here, the substance and application of the USD 100,000 payment reveal that it is a tax, regardless of what the payment is called.”

The decision came after a coalition of 20 US states challenged the policy, arguing that the administration had exceeded its powers and improperly intruded into areas reserved for Congress, including immigration regulation and taxation.

The H-1B programme, widely used by US technology firms to hire highly skilled foreign workers, has long been central to American industry’s access to global talent. Indian professionals — particularly those in technology and healthcare — form one of the largest groups of H-1B visa holders.

The disputed fee was introduced in a September proclamation signed by then-President Donald Trump, requiring a $100,000 payment for new H-1B visa applications. The administration had defended the move as a way to encourage companies to prioritise American workers.

Industry stakeholders and employers, who typically bear the cost of H-1B sponsorship, warned that the steep fee would sharply restrict hiring and reshape visa planning for global firms.

The ruling also comes amid heightened scrutiny of the programme. Recently, Department of Homeland Security secretary Markwayne Mullin told a senate panel that over 200,000 applicants seeking H-1B visas in fiscal year 2026 had paid the $100,000 charge to expedite processing — adding further controversy to the already contested policy.

The court’s decision effectively halts enforcement of the fee, marking a significant setback for efforts to overhaul the H-1B system through executive action.

With PTI inputs