A federal judge has struck down the $100,000 fee that the Trump administration imposed on new H-1B visas, concluding it constituted an unlawful tax Congress never authorized. U.S. District Judge Leo Sorokin, in a lawsuit brought by 20 Democratic state attorneys general, ruled that Trump exceeded his authority with his September executive order.
What changed
Judge Sorokin issued the ruling in Boston on June 8, 2026 in a lawsuit challenging the fee Trump announced in September, which dramatically raised the cost of obtaining H-1B visas. Trump signed the proclamation adding a $100,000 fee for new H-1B visa applications last September.
The judge wrote “the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called.” The court found that the charge violated the Administrative Procedure Act and could not stand because the Constitution reserves taxing power to Congress.
Sorokin’s decision turned on the distinction between a regulatory fee and a tax, concluding that the payment raised revenue rather than simply covering an agency service, placing it outside executive authority unless Congress had approved it.
Why it matters
The fees are generally paid by the sponsoring employer. Employers seeking a visa for a foreign worker before Trump’s proclamation typically paid about $2,000 to $5,000 in fees. The $100,000 surcharge made H-1B hiring prohibitively expensive for most organizations.
The increase in fees has discouraged H-1B visa requests, according to court filings. The fee affected sectors including technology companies, school systems and rural hospitals that said the fee pushed recruiting costs far beyond standard levels.
The ruling applies immediately in Massachusetts and restores the prior fee structure—meaning employers filing new H-1B petitions are no longer subject to the $100,000 surcharge. However, the White House vowed to appeal the decision, and the U.S. Chamber of Commerce sued in federal court in Washington, D.C., and has appealed a denial of summary judgment, with the higher fee remaining in effect there at least until September 2026. This creates a split in federal courts that may lead to Supreme Court review.
Way forward
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Monitor the appeal. The administration said it would appeal this decision, and conflicting rulings in different circuits create uncertainty. Watch the First Circuit appellate docket.
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Recalculate H-1B budgets. If you are filing in districts within the First Circuit (covering Massachusetts, Maine, New Hampshire, Rhode Island, and Puerto Rico), the standard $2,000–$5,000 fee structure now applies; do not budget for the $100,000 surcharge for filings in those jurisdictions.
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Clarify with USCIS. Contact the National Benefits Center to confirm whether USCIS has ceased collecting the $100,000 fee nationally or only in the jurisdictions bound by Sorokin’s ruling, as fee processing may remain in flux during appeal.
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Preserve records. If you or a client paid the $100,000 fee, document the payment and the date of filing for potential refund claims once the litigation is final.
Disclaimer
This article is provided for informational purposes only and does not constitute legal advice. Fola is a software company, not a law firm. Immigration law is complex and this ruling may be appealed or superseded. Immigration policy can change without notice. Consult a licensed immigration attorney in your jurisdiction and verify the current status of this ruling and any applicable fee schedules against official USCIS guidance and USCIS Form I-129 instructions before filing.