Major blow to Trump’s immigration policy: Federal court strikes down $100,000 H-1B visa fee, calls it ‘unlawful’

US District Judge Leo Sorokin in Boston ruled that the fee amounted to an unlawful tax that had never been approved by Congress.

Washington: In a blow to one of the administration’s most controversial immigration measures, a US federal court has struck down President Donald Trump’s decision to impose a $100,000 fee on new H-1B visas. The ruling is expected to bring relief to employers and skilled foreign workers, including thousands from India.

US District Judge Leo Sorokin in Boston ruled that the fee amounted to an unlawful tax that had never been approved by Congress. The verdict came after 20 Democratic state attorneys general challenged the policy in court following Trump’s announcement in September.

The H-1B programme is one of the most sought-after pathways for highly skilled foreign professionals seeking work in the United States. Each year, 65,000 visas are issued under the regular quota, while another 20,000 are reserved for individuals holding advanced degrees. These visas are granted for periods ranging from three to six years.

Before the Trump administration introduced the new policy, employers seeking to sponsor a foreign worker under the H-1B programme paid between $2,000 and $5,000 as fees. The hike to $100,000 was unprecedented and it was criticised by businesses, universities and state governments.

Court rejects administration’s argument

The administration had argued that the fee was not a tax but a monetary penalty that the president had the authority to impose under federal immigration law in order to restrict the entry of foreign nationals.

Judge Sorokin disagreed. He wrote in his ruling, “The President has no authority to levy a tax unless such a power is delegated by Congress through statute... the Court finds that the Policy imposes a tax on H-1B petitions without the requisite delegation by Congress. (hence) the Policy implementing the Proclamation is declared unlawful and is vacated in its entirety.”

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The judgment effectively cancels the policy in full.

Court filings submitted by the administration had shown that the dramatic increase in fees was discouraging employers from applying for H-1B visas. According to government filings, the US Citizenship and Immigration Services had received only 85 payments of the $100,000 fee as of February 15.

Data released by the US Citizenship and Immigration Services last month also revealed a decline in demand. Properly submitted H-1B registrations dropped by 38.5 percent, falling from 343,981 in fiscal year 2026 to 211,600 for fiscal year 2027.

What Trump’s proclamation said

The proclamation introducing the higher fee argued that the H-1B programme had moved away from its original purpose.

According to the document, the programme “has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor”, which had “undermined both our economic and national security”.

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The proclamation further stated that some employers had used the system to suppress wages and make it difficult to attract and retain highly skilled workers, particularly in science, technology, engineering and mathematics (STEM) fields.

How the decision impacts India

The ruling is likely to have a direct impact on India, whose professionals make up a large share of H-1B visa holders in the United States.

The fee hike, along with tighter immigration rules and job cuts across the technology sector, had created uncertainty for many Indian professionals seeking work opportunities in America. Employers became more cautious about hiring foreign workers, while many visa holders who lost jobs struggled to find new employment within the mandatory 60-day period before having to leave the country.

The issue had also featured in India-Us talks. In May, External Affairs Minister S Jaishankar raised concerns over visa-related issues during talks with US Secretary of State Marco Rubio.

The latter acknowledged that there could be “some bumps” and “friction points” as the United States worked to reform its immigration system. He had said an “efficient” system would ultimately benefit all stakeholders.

He had also stressed that the measures were not directed at India. “This is not because of India, but broadly, we have had over 20 million people illegally enter the United States over the last few years, and we have had to address that challenge,” Rubio had said.

The court’s ruling has now left the administration to decide whether to appeal in a higher court against the verdict or explore other ways to change the H-1B programme.