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A federal judge on Monday struck down President Donald Trump’s $100,000 fee requirement for employers seeking H-1B visas for highly skilled foreign workers, ruling that the administration exceeded its authority by imposing what amounted to a tax that only Congress can authorize or delegate.
U.S. District Judge Leo Sorokin, an Obama appointee, issued the ruling in a lawsuit filed by 20 states in the U.S. District Court for the District of Massachusetts, according to court filings.
The lawsuit, challenging the fee Trump announced in September, was led by California and named Homeland Security Secretary Markwayne Mullin, whose department oversees the H-1B visa program, as a defendant. Several federal agencies involved in implementing and enforcing the policy were also named in the suit.
As part of the ruling, Sorokin invalidated agency memoranda, guidance documents, website instructions, FAQs and fee schedules that established and enforced the $100,000 H-1B visa fee.
TRUMP’S $100K H-1B VISA OVERHAUL COULD HIT TECH GIANTS LIKE AMAZON AND MICROSOFT HARDEST
According to the filing, Sorokin ruled that the fee was designed to raise revenue from a lawful program and therefore functioned as a tax rather than a penalty, as the Trump administration had argued. Under the U.S. Constitution, the power to impose or delegate taxes rests with Congress.
“Here, the $100,000 payment requirement for all H-1B petitions does not aim to establish that hiring H-1B workers is illegal,” the filing said. “The payment is not a penalty… because it is not ‘punishment for an unlawful act or omission.’ Hiring workers pursuant to the H-1B program is plainly lawful.”
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The fee also violated the Administrative Procedure Act (APA), which requires agencies to undergo a “notice-and-comment” period to gather public feedback, the judge ruled.
Sorokin said the agencies that implemented and enforced the fee failed to adequately explain their reasoning, consider alternative options or assess the policy’s potential consequences, and lacked a valid emergency or foreign-affairs justification for bypassing the process.
“[T]he mere fact that Defendants followed a presidential directive does not grant them free rein to ignore the requirements of the APA,” Sorokin wrote.
ARE AMERICAN WORKERS BEING REPLACED? INSIDE THE H-1B VISA CONTROVERSY
As of Feb. 15, U.S. Citizenship and Immigration Services (USCIS) has received 85 payments of the $100,000 requirement, resulting in $8.5 million in payments, the administration said in a March filing.
The H-1B program provides 65,000 visas annually, with an additional 20,000 reserved for workers with advanced degrees, typically valid for three to six years, according to Reuters.
Employers generally paid between $960 and $7,595 in fees prior to Trump’s proclamation, court filings said.
Trump introduced the fee last September, arguing the H-1B visa process was fueling the large-scale replacement of American workers and had “undermined both our economic and national security.”
His move to address the issue drew widespread criticism from business and tech leaders.
From 2024 through mid-2025, Amazon received 19,301 H-1B approvals, more than any other major tech company, according to USCIS data. Microsoft also secured 9,914, while Apple received 8,075.
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