A federal judge ruled Monday that the $100,000 fee imposed on H-1B visa petitions by President Trump is unlawful. U.S. District Judge Leo Sorokin ruled in a lawsuit brought by 20 Democratic state attorneys general that Trump exceeded his authority with his September executive order raising the annual fee for the visa. If you’re advising employers on H-1B strategy or calculating filing costs, this decision materially changes your immediate landscape—and sets up a contested appeals process that will ripple through the next eighteen months.
What changed
The judge wrote that “the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called.” Judge Sorokin concluded that the executive branch exceeded its authority and violated the Administrative Procedure Act, which governs how federal agencies develop and issue regulations.
The fee structure reverts to pre-September 2025 levels. Employers seeking a visa for a foreign worker before Trump’s proclamation typically paid about $2,000 to $5,000 in fees, depending on various factors. The White House vowed to appeal, and another lawsuit was filed in federal court in San Francisco, by religious groups and labor organizations, setting up the possibility of divided rulings in three appellate court circuits.
Why it matters
For in-house counsel and immigration practitioners: your client’s H-1B petition cost just dropped by $95,000 to $98,000 per petition. If you’ve already advised clients to absorb the higher fee or defer filings, you have an immediate opportunity to revisit strategy and potentially reactivate hiring plans.
The decision also highlights a core tension: the increase in fees has discouraged H-1B visa requests, and as of February 15, US Citizenship and Immigration Services had received just 85 payments of the $100,000 fee. The low uptake itself became evidence that the fee functioned as a tax rather than a cost-recovery mechanism.
Expect volatility. The U.S. Chamber of Commerce also sued in federal court in Washington, D.C., and has appealed a denial of a summary judgment against the fee hike. That case may reach a different conclusion in a different circuit. Until all appeals resolve—likely in 2027 or 2028—the fee environment remains unstable.
Way forward
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Audit pending and deferred filings. If you’ve counseled clients to wait out the $100,000 fee, review your pipeline. The cost barrier has lifted; timing and visa availability become the primary constraints again.
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Budget for the lower fee immediately. Assume the $2,000–$5,000 range is operative for new petitions filed today. Do not plan around the $100,000 amount unless and until the appeal reverses this ruling.
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Monitor the San Francisco and D.C. circuit appeals. Conflicting rulings across circuits may trigger a faster Supreme Court petition or a binding circuit-split resolution. Check the federal docket monthly if you’re handling high-volume H-1B work.
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Document the fee paid on your current petitions. If you’ve paid the higher fee in the last six months, preserve all billing records and communications with USCIS. Refund claims or credit applications may follow if the ruling becomes final on appeal.
Disclaimer
Fola is not a law firm and does not provide legal advice. This article summarizes a federal court ruling on the record; it is not a substitute for consultation with a licensed immigration attorney. Immigration policy can change without notice, and this ruling remains subject to appeal. Verify all fee amounts and filing requirements directly against the official USCIS H-1B page and the primary court order linked above before advising a client or submitting a petition.