H-1B Fee Ruling in Massachusetts Strikes Down $100,000 Charge Nationwide

A federal judge in Massachusetts scrapped President Donald Trump's $100,000 charge on some new H-1B visas. The ruling stops the fee nationwide with immediate effect. It lowers costs for employers that hire skilled overseas staff. Technology firms, universities, and hospitals said the charge would disrupt staffing plans and budgets.

US District Judge Leo Sorokin said the Trump administration lacked legal power to set the payment. The judge treated the charge as a tax that Congress did not approve. "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. The order also weakened efforts to limit legal immigration by executive action.

Trump announced the $100,000 payment in September 2025 through a presidential proclamation. The order applied when employers hired certain new H-1B workers from abroad. Before this, firms usually paid filing charges of about $2,000 to $5,000. The total depended on petition type and other details.

The H-1B programme allows US employers to recruit for specialist roles. These jobs require at least a bachelor's degree. Federal law caps regular H-1B visas at 65,000 each year. Another 20,000 slots go to applicants with advanced US degrees. Indian nationals receive almost 70 per cent of these visas annually.

Key figures in the dispute are listed below for reference.

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

A group of 20 Democratic state attorneys general brought the case. The coalition said the White House created a large tax without Congress. The states argued the move exceeded powers under the Immigration and Nationality Act. They also cited the US Constitution’s division of taxing authority.

Business groups, universities, and hospitals warned the fee would raise hiring costs sharply. Smaller firms and startups said the charge would block H-1B hiring. Critics also linked the policy to weaker local economies. They pointed to risks for research output and patient care where specialists were essential.

Court filings also pointed to weak take-up of the new payment. Bloomberg reports and government records suggested demand fell soon after the change. By mid-February, immigration authorities received only 85 payments. The figure implied few employers could justify $100,000 for a new petition.

The Massachusetts decision added to a split between federal courts on Trump’s immigration steps. In Washington, a different federal judge upheld the same $100,000 fee. That court accepted broad presidential power to restrict entry of foreign nationals. The Washington ruling is already under appeal, and further review now looked more likely.

The Trump administration can ask the US Court of Appeals for the First Circuit to overturn Judge Sorokin’s order. Officials may also seek a stay that restores the fee during the appeal. For now, employers faced no $100,000 payment when hiring under the H-1B route. Skilled workers seeking US roles also gained immediate relief while the legal fight continued.