A federal judge has blocked President Donald Trump’s order imposing a $100,000 fee on H-1B visa applications. The ruling gives relief to U.S. technology companies that rely on skilled foreign workers.
Summary
- A federal judge blocked Trump’s $100,000 H-1B visa fee after a state-led lawsuit.
- Judge Leo T. Sorokin ruled the fee acted as an unlawful tax without congressional approval.
- The decision gives relief to technology firms that depend on skilled foreign workers.
U.S. District Judge Leo T. Sorokin said the charge functioned as an unlawful tax. The decision came in a lawsuit filed by 20 Democratic state attorneys general.
Judge Sorokin rejects visa fee order
According to the ruling issued Monday in Massachusetts, Judge Sorokin vacated the administration’s H-1B fee order. He said the president lacked congressional approval to impose the payment. The judge rejected the government’s argument that the charge qualified as a lawful penalty.
Instead, he said the fee operated as a tax under its structure and use. “The president’s decree dramatically increasing the cost of the popular visa is an unlawful tax,” Sorokin wrote. The lawsuit challenged a fee that Trump announced in September as part of his immigration agenda.
State attorneys general argued that the order exceeded presidential authority. They also said it would raise costs for employers using the H-1B program. The ruling now stops the fee from taking effect under the challenged order. The Trump administration will likely appeal the decision.
H-1B program supports skilled workers
The H-1B visa program allows U.S. employers to hire skilled foreign workers for specialized roles. Technology companies use the program for engineers, developers, and other technical staff. Federal rules provide 65,000 H-1B visas each year.
The program also reserves 20,000 more visas for workers with advanced degrees. Most approved visas last between three and six years. Before Trump’s order, employers usually paid between $2,000 and $5,000 in related filing costs.
The new fee would have raised the cost sharply for many applicants. The administration argued that the payment would discourage certain foreign worker entries. It also said the president could impose the charge under federal immigration law. Judge Sorokin disagreed and focused on the payment’s legal character.
The court labels the payment as tax
In his ruling, Sorokin said the substance of the payment mattered more than its label. “Here, the substance and application of the $100,000 payment reveal that it is a tax,” he wrote. He added that the payment remained a tax regardless of the name used by the government.
Under U.S. law, Congress controls federal taxing authority. The judge said the president could not create such a tax alone. The ruling creates a legal setback for Trump’s effort to tighten immigration rules through higher costs. It also removes an immediate burden for companies that sponsor H-1B workers.
The case now moves toward a possible appeal by the federal government. For now, the court order blocks enforcement of the $100,000 H-1B visa fee. The administration has not yet announced its next legal step.
