A U.S. federal district court judge has ruled that a Trump administration executive order imposing a $100,000 application fee for H-1B visas is unlawful and invalid, providing critical relief for American tech companies heavily reliant on foreign skilled talent.
In a decision issued Monday, U.S. District Judge Leo T. Sorokin for Massachusetts found that the policy, which dramatically increased fees for the popular work visa, constituted an illegal tax and must be struck down.
The Trump administration promptly stated it would appeal the ruling, asserting the president has clear legal authority to restrict the entry of foreign nationals and noting that another federal court has already upheld a nearly identical order. This decision represents a setback for Trump's policy agenda of tightening immigration rules to boost domestic hiring.
The court sided with a coalition of 20 states, led by California, which argued the fee policy exceeded presidential authority and would cause significant harm to public sectors like education and healthcare. Major technology and outsourcing firms, including Amazon, Microsoft, Apple, Meta, and Tata Consultancy Services, are among the largest users of H-1B visas.
Judge's Finding: Fee Constitutes an Unauthorized Tax
In his ruling, Judge Sorokin explicitly stated the policy "imposes a tax on H-1B applications without the necessary authorization from Congress," emphasizing that "vague statutory language is insufficient to delegate the power to tax."
On legal grounds, Sorokin cited a recent U.S. Supreme Court decision that overturned a broad set of Trump-era global tariffs, establishing that the president cannot unilaterally impose taxes or tariffs when the law is not clear.
The administration defended the fee, arguing it was not a tax because it was not collected by the IRSA Inversiones y Representaciones SA (IRS) and was not intended to raise general revenue. The government also cited the legal position that the president holds "broad discretionary authority" over the entry of foreign nationals.
White House Rejects Ruling, Vows to Appeal
The White House rejected the ruling and announced its intent to appeal. A spokesperson stated:
"President Trump has clear legal authority to restrict the entry of any class of foreign nationals he deems not in the national interest, and that is what he has done. The H-1B program has been abused for decades, and President Trump is finally taking action to fix it. A federal judge in Washington has already upheld a nearly identical order, and the administration is confident this ruling will be overturned on appeal."
At least three separate lawsuits are currently challenging the fee policy. The U.S. Chamber of Commerce and a nurse recruiting company have each filed suits. Last December, a judge denied the Chamber's request to pause the fee's implementation, and the Chamber has since appealed to a Washington, D.C., federal appeals court.
Coalition of 20 States Argued Policy Was Overreach
The core lawsuit leading to this ruling was led by California Attorney General Rob Bonta and Massachusetts Attorney General Andrea Joy Campbell.
The coalition of plaintiff states also includes Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Minnesota, New York, North Carolina, Nevada, New Jersey, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.
The states argued in their suit that the policy not only overstepped presidential power but would disproportionately damage public sectors that depend on foreign technical talent, specifically education and healthcare.
The case is State of California v. Mullin, 25-cv-13829, in the U.S. District Court for the District of Massachusetts.
H-1B Overhaul: Fee Hike Part of Broader Crackdown
The H-1B visa is a cornerstone of the U.S. employment-based immigration system, allowing companies to hire foreign workers with university degrees for specialty occupations. Visas are allocated via an annual lottery, with the technology sector being the primary user.
Last September, Trump signed a proclamation raising the application fee to $100,000, aiming to curb what he called long-term abuse of the program that "crowds out" the domestic workforce. The fee was set for a one-year term, requiring active renewal by the administration.
The fee increase is just one of several moves by the administration to tighten H-1B rules. The government has also proposed raising the minimum salary for H-1B holders and has already altered the annual lottery rules to prioritize foreign applicants with the highest wage offers.
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