Blow to President Donald Trump Immigration Policy as Court Rejects $100,000 H-1B Visa Charge

A federal court in Massachusetts has struck down President Donald Trump's steep $100,000 charge on new H-1B visas, lifting a major burden for employers and skilled foreign professionals. US District Judge Leo Sorokin ruled that the administration lacked legal authority for the measure, describing it as an unlawful tax that Congress never approved.

The decision immediately blocks enforcement of the fee across the United States, easing costs for technology firms, universities, hospitals and other institutions that depend on global talent. It also delivers a serious blow to Trump's broader effort to narrow legal immigration through unilateral executive actions rather than new legislation.

H-1B visas fee dispute and impact on immigration

Trump had announced the $100,000 payment in September 2025 through a presidential proclamation. The order required employers to pay the charge when hiring certain new H-1B workers from overseas. Previously, companies usually faced government filing costs ranging from about $2,000 to $5,000 for each petition, depending on the exact category and circumstances.

The H-1B system lets American employers bring in foreign professionals for speciality roles that require at least a bachelor's degree. The law sets an annual quota of 65,000 regular H-1B visas and reserves another 20,000 slots for candidates holding advanced degrees from US universities. Indian nationals receive almost 70 per cent of these visas each year.

A coalition of 20 Democratic state attorneys general led the successful challenge against the Trump policy. The states argued that the White House had effectively created a substantial tax on employers without congressional consent. They said this move exceeded the president's authority under the Immigration and Nationality Act and clashed with the US Constitution's allocation of taxing powers.

Judge Sorokin sided with the states on the core legal issues after reviewing the proclamation and its effects. "Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called," the judge wrote, stressing that only Congress can authorise such a wide‑ranging financial burden on employers.

H-1B visas fee, employers and economic concerns

Business associations, universities and hospitals had warned that the huge new charge would sharply raise hiring costs and discourage recruitment of foreign professionals. Smaller firms and startups said the fee would make H-1B hiring practically impossible. They argued that the policy could weaken regional economies, research activity and patient care at institutions that rely on specialist staff.

Evidence presented in court suggested that the fee had already chilled demand. Bloomberg reports and government records showed that by mid-February, immigration authorities had received only 85 payments under the scheme. That figure indicated that very few employers were willing or able to pay the $100,000 requirement for new H-1B petitions.

H-1B visas detail	Number / amount
Standard annual H-1B cap	65,000 visas
Additional advanced degree cap	20,000 visas
Share of visas held by Indian professionals	Almost 70 per cent
Typical pre-2025 employer filing fees	Approximately $2,000–$5,000
New fee imposed in 2025	$100,000 per qualifying petition
Payments received by mid-February	85 payments

H-1B visas policy split between federal courts

The Massachusetts ruling deepens a growing divide within the US judiciary over Trump's immigration restrictions. In a different lawsuit filed by the US Chamber of Commerce and several business groups, a federal judge in Washington had earlier upheld the same $100,000 fee. That judge found that Trump possessed broad powers to limit the entry of foreign nationals.

The Washington decision is already before an appeals court, and the new judgment makes further review more likely. The Trump administration can now ask the US Court of Appeals for the First Circuit to reverse Judge Sorokin's order. Officials may also seek a stay that would temporarily reinstate the fee while appeals move forward.

For employers and workers, the latest judgment removes an immediate barrier to hiring under the H-1B programme. Technology companies, research universities and hospitals in particular gain relief from a cost that they said would disrupt operations. For thousands of highly skilled foreign professionals hoping to work in the United States, the ruling represents a key legal victory in an ongoing contest over the direction of high‑skilled immigration policy.