Federal Judge Rules Against $100K H-1B Visa Fee Imposed by Trump Administration

<p>A federal judge ruled on June 8, 2026, that the $100,000 fee requirement for employers seeking H-1B visas for highly skilled foreign workers, imposed by the Trump administration, is unconstitutional. U.S. District Judge Leo Sorokin stated that the administration exceeded its authority by implementing a fee that functions as a tax, which can only be authorized by Congress.</p><p>The ruling came from a lawsuit filed by 20 states in the U.S. District Court for the District of Massachusetts. The lead plaintiff was California, and the lawsuit named Homeland Security Secretary Markwayne Mullin as a defendant, along with several federal agencies involved in the H-1B visa program.</p><p>Judge Sorokin invalidated various agency documents that established and enforced the fee. He determined that the fee was intended to generate revenue from a lawful program, thus categorizing it as a tax rather than a penalty, which the Trump administration had claimed. According to the U.S. Constitution, the authority to impose taxes lies with Congress.</p><p>The judge noted, "The $100,000 payment requirement for all H-1B petitions does not aim to establish that hiring H-1B workers is illegal. 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."</p><p>Additionally, the fee was found to violate the Administrative Procedure Act (APA), which mandates a public feedback period for agency rules. Sorokin indicated that the agencies did not adequately justify their reasoning or consider alternative options, and they lacked a valid emergency justification for bypassing the APA process.</p><p>As of February 15, U.S. Citizenship and Immigration Services (USCIS) reported receiving 85 payments of the $100,000 fee, totaling $8.5 million. The H-1B program typically provides 65,000 visas annually, with an additional 20,000 for workers with advanced degrees. Prior to the fee's introduction, employers generally paid between $960 and $7,595 in fees.</p><p>Trump introduced the fee in September 2025, citing concerns that the H-1B visa process was contributing to the replacement of American workers and undermining economic and national security. His proposal faced significant opposition from business and technology leaders.</p>